Brands move more marketing work in-house with AI

Generative AI is accelerating a shift toward in-house marketing teams as companies seek faster campaign execution, lower costs and tighter control over brand strategy. Businesses across consumer, media and technology sectors are using AI tools for creative development, social media, performance marketing, customer engagement and content production, reducing reliance on traditional advertising agencies.

Flipkart, Swiggy and PhonePe are deploying AI to improve marketing efficiency, while Nykaa manages much of its creative, design and advertising through internal teams. Godrej Consumer Products has strengthened Lightbox Creative Lab for global campaigns and reduced advertising and promotional expenses by 4% to Rs 1,172 crore in FY26 compared to Rs 1,222.6 crore in FY25. Balaji Telefilms has brought brand strategy, digital marketing, communications, performance marketing and AI-led initiatives largely in-house, using AI in projects such as Naagin to enhance visual elements.

Industry executives expect hybrid models to define the next phase of marketing. Brands are likely to retain ownership of data, technology platforms, content operations and AI systems, while agencies focus on specialized expertise, innovation, operating models and implementation. AI is increasingly positioned as a layer that compresses production timelines and lets creative teams spend more time on strategy and ideas.