On June 11, 2025, I had the opportunity to attend the Agency Leadership Circle with Google Canada, a gathering that brought together thought leaders from across the industry to reflect on the accelerating role of AI, not just as Artificial Intelligence, but as what Google was calling as Agency Intelligence at the event.
AI: More Profound Than Electricity or Fire?
The event opened with Miles Savage and Matt Thoronton, who reframed the conversation around AI’s purpose within agencies. They recalled Sundar Pichai’s powerful statement from 2018:
“AI is probably the most important thing humanity has ever worked on. I think of it as something more profound than electricity or fire.”
The pace of change is undeniable. Mark Zuckerberg recently confirmed that Meta plans to run ads entirely through AI by the end of 2026 — a signal that the advertising landscape is heading into a new era at full speed.
The Canadian Productivity Gap and AI's Role
Canada is currently experiencing a 9% decline in productivity, a worrying stat. But the message from Google was optimistic: AI can save each employee up to 125 hours per year, and its adoption is expected to boost GDP by 5–8%, helping offset the productivity shortfall.
A standout example came from Shopify, which revealed that 43% of their internal tasks are now AI-driven — an impressive shift that marks a new standard for operational efficiency.
The speakers drew a powerful historical analogy: it took businesses three decades to transition from steam engines to electricity. That shift sparked a boom in productivity. Likewise, we may only have 2–3 years to adapt to AI at scale before it becomes foundational to how every agency operates.
AI in Action: SearchKings
This year’s Google AI Award went to SearchKings, a homegrown agency recognized for building a custom AI tool tailored to the home services industry. It's a strong example of how agencies can not only adapt but lead in the AI space.
Another highlight was Askiuri, a tool designed to support creative development — especially for video — by applying YouTube’s proven ABCD framework:
- Attention
- Branding
- Connection
- Direction
The takeaway? Agencies should focus on fostering a culture of creativity and curiosity to make the most of what AI can offer — not just in production, but in strategy and storytelling.
Google’s Investment in Canadian Innovation
To support Canadian agencies and businesses in their AI journeys, Google is launching a $13 million AI innovation fund in Canada. This investment will help fuel local projects and accelerate adoption across industries.
Agency Economics: Insights From Madison and Wall
Later in the day, Brian Wieser of Madison and Wall shared a deep dive into the economics of the agency landscape. According to their research, the global agency market is valued at $300 billion, including consulting firms. The U.S. represents $100 billion, while Canada is estimated at $8 billion.
Interestingly, the "Big Six" holding companies currently hold about 30% of the market, though that number is declining due to relentless focus on profitability and structural challenges — what Wieser called the “pruning of the holdcos.” He also pointed to macroeconomic factors like deglobalization and political volatility, particularly in the U.S., that are shaping the future of agency work.
A Look at Google’s AI Stack
Closing out the event, JP Gauthier and Matt Rivard provided a glimpse into the latest developments in Google’s AI ecosystem:
- AI Mode is already live in U.S. Search.
- AI Overviews are now available in 200 countries.
- AI Max is being rolled out for Search campaigns, helping expand reach, targeting, and creative variation.
- Google is leveraging TPUs (Tensor Processing Units) to manage massive global demand and optimize performance.
- The acquisition of DeepMind has been instrumental in enabling this level of scale.
- The newly deployed Gemini 2.5 is now actively powering Google Search.
They also discussed the complexity of model performance using Pareto charts — a reminder that in optimizing one area of AI performance, another may need to be traded off. Balance remains key.
Final Thoughts
From strategy to execution, from tech stacks to culture, it’s clear that AI is no longer just a tool — it's the new operating system for agencies. Events like this are a vital checkpoint for how we navigate the next wave of change.
Thank you to Google Canada for organizing a thoughtful and inspiring event. I look forward to seeing how our industry continues to evolve — and I’m already looking forward to next year.