Abstract :

Background – The demand for content across various rising digital media platforms pushes the advertising secotr to adopt Artificial Intelligence (AI) automation to improve creativity, speed, and efficiency, especially in areas like art direction, copywriting, and graphic design. While AI offers solutions to improve efficiency and support creative processes, advertising agency stakeholders start to see the urgency in assessing how AI can work alongside human creativity to produce essential quality content for the client’s value creation as the industry moves forward for a sustainable business growth.

Methodology – This research uses mixed-method; Quantitative method to measure AI integration within advertising agencies and assess audience reactions to AI-generated ads, establishing a link between AI usage and audience behavior; Qualitative method through In-Depth Interviews to identify the underlying insights from the advertising professionals’ perspective in integrating AI on daily basis. The findings are processed for the development of a Performance Management System (PMS) using AHP scored by industry experts as the basis to prioritize the Key Performance Indicators (KPIs)

Practical implications – This PMS framework is designed for macro-level advertising agencies to monitor and optimize the use of AI tools effectively through weighted KPIs and strategic AI investments.

Originality/value – This study contributes to the existing industry study by introducing a performance measurement and addresses a theoretical gap between AI-driven creative process and its impact to the industry’s value creation.

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Keywords :

Advertising Industry, artificial intelligence (AI), Creative Process, Performance Management System (PMS)

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