There was a moment early in this month’s Blutui Founders Circle that neatly captured the mood of the room.

When asked what he was seeing across the agency landscape, Ian Wright paused, then offered a simple observation:

“They seem a bit lost, distracted and vulnerable right now.”

It was not said for theatrical effect. It was said because, across the conversations he is having with founders and agency leadership, it is what is showing up.

That sense of drift is not without context. Across the group, the prevailing sentiment is that activity remains flat. AI is no longer a future consideration, it is arriving in real terms, while at the same time geopolitical instability and sustained global fuel price rises continue to suppress consumer confidence and spending. The combined effect is a market that feels constrained just as the rules of the game are being rewritten.

But beneath the macro conditions sits something more acute. Many agency leaders are struggling to find stable ground. The pace of technological change is such that committing to a strategy increasingly feels like placing a bet that may not hold. The question is no longer what to do, but whether there is enough time for any decision to meaningfully play out before the landscape shifts again. Take the case of Sam Altman, Open AI and SORA - Simply. Switched. It. Off.

It is precisely in this gap that platforms like Blutui are finding relevance. By removing the need to commit to a single execution pathway, they offer a way for agencies to move without locking themselves into decisions that risk rapid obsolescence.

While leadership hesitates, however, clients are not standing still.

Tyler Burbage described a clear and accelerating shift in client behaviour. CMOs and marketing teams are increasingly taking matters into their own hands, using AI tools to research, shape and in many cases generate near-complete solutions before an agency is even engaged. What was once a briefing process is now something closer to a presentation, with clients arriving at the first meeting asking whether the agency can work with what has already been created.

The implications of this are significant. When a solution is tabled at the outset, the scope for exploration narrows. The direction is, at least partially, predetermined. The agency is subtly repositioned, not as a partner in defining the answer, but as a resource to validate and execute it.

For Burbage and others in the room, this is a line that needs to be actively managed. The agency’s role is not to endorse a pre-formed solution, but to interrogate the problem and maximise the value of solving it. That may involve AI, or it may come from a less predictable source entirely, but the integrity of the creative process must be protected. When clients predetermine outcomes, it undermines the very reason agencies are engaged in the first place.

This tension led the group back to a question that has surfaced before in previous sessions. If agencies allow this dynamic to take hold, what do they become?

The shift is subtle but profound. From trusted advisor and creative partner to service provider, vendor and ultimately order taker. The difference between those positions is not incremental, it is fundamental.

It was in this context that Cas Majid reinforced a critical point around positioning. Agencies that maintain their value do so because they are clear on who they are and what they deliver. Their story is aligned with their ambition, and they own that narrative with confidence. Importantly, that clarity is not confined to leadership. It is understood and articulated consistently across the entire organisation, from the boardroom through to the most junior team members. Without that alignment, the risk is that the agency’s value is defined externally, most often by the client.

If the external pressures are mounting, the internal ones are no less complex.

One Founders Circle agency shared its experience of attempting to embed AI into its workflow. Despite investing in both an AI Champion and an AI Implementation role, progress had been effectively stalled. Not through lack of intent at leadership level, but through resistance within the business itself. In some cases this resistance was subtle and out of sight, in others it extended into senior ranks.

What emerged in the discussion was a layered challenge. There is an instinct to protect craft, a concern around job security, and a broader uncertainty about where AI fits within existing roles. But more fundamentally, there is a lack of shared understanding about how AI can enhance, rather than diminish, the value individuals bring.

There is an irony in this. For years, agency teams have pushed back on unsustainable workloads and the demands of an always-on industry. Yet the very technology that has the potential to create more balanced and sustainable ways of working is being met with hesitation and, in some cases,fear and active resistance.

Alongside these challenges, there are also signs of momentum.

Graeme Blake spoke to the experience of introducing agencies to Blutui. Adoption has been measured rather than immediate, but the release of the Context feature earlier in the year marked a clear inflection point. What had previously required explanation began to demonstrate its value more intuitively. As Majid noted, after his own ‘penny dropping’ moment his partnership with Blutui has been one of the highlights of the first quarter, reflecting a growing alignment between the platform and the needs of modern agencies.

As the conversation moved forward, attention turned to the question of value itself.

If AI is compressing the time required to deliver work, the traditional relationship between time and revenue begins to break down. Several founders pointed to the need for a fundamental rethink in pricing models, moving away from hourly billing towards models that better reflect outcomes and impact. The notion of “pricing for the second, not the hour” captured the shift succinctly.

This recalibration is also playing out at a personal level for some founders.

One member shared the decision to step back from day-to-day operations and move immediately into a form of early retirement. Not as an exit, but as a repositioning. The focus shifts from operational delivery to relationships, direction and setting expectations, creating space for the next layer of leadership to step forward.

That emphasis on relationships proved to be a fitting place to land.

Both Graeme Blake and Amir spoke to the enduring value of personal connections in driving growth. In an environment increasingly shaped by technology, it is still relationships that open doors, create opportunities and sustain businesses over time. Across the group, there was broad agreement that networks, industry organisations and personal contacts continue to do the heavy lifting when it comes to business development in founder-led agencies.

Which brings the conversation back to where it began.

Lost. Distracted. Vulnerable.

As a snapshot of the current moment, it is hard to argue with Ian Wright’s assessment. But as with most honest diagnoses, it is also useful. Because it highlights what needs to be resolved.

Clarity of positioning. Confidence in value. A willingness to challenge clients when required. A better understanding of how AI fits within the craft, not against it. And a renewed focus on the relationships that have always underpinned success.

The agencies that can bring those elements together will not remain lost for long.