“The agency pricing model is broken”

I recently recorded a conversation with Jon Gwillim and Kate Eversole from PharmaBrands.

They spend their lives embedded in pharma and healthcare marketing – running events, upskilling teams, speaking to agencies and their clients every single week.

So they see what’s actually happening. Not the LinkedIn version. The real version.

We had an honest conversation - including discussing the fear many people have about AI replacing them.

Here are just three of the themes we discussed and a peek into the full episode that you can find here.

Theme 1: The agency pricing model is broken

Clients are expecting agencies to deliver faster, smarter and more efficiently but the RFPs still ask you to fill in hourly rates on a spreadsheet.

Jon and Kate were blunt about it: we can’t move half the model. Forrester backs this up, predicting a 15% reduction in agency jobs this year. The market’s growing, but the old way of charging is dying.

Their advice is that if you’re not already having the pricing conversation internally, start now.

Theme 2: AI tools are everywhere. AI confidence is not.

Every major pharma company now has approved AI tools and governance in place. But Kate flagged that the training is often not matching the need e.g. having a one-off half-day session on AI and then expecting people to run with it.

Deloitte’s State of AI in the Enterprise 2026 report confirms this: 84% of companies haven’t redesigned jobs around AI and insufficient skills are the biggest barrier to adoption.

The very short-term opportunity for agencies to add value is to help clients use the tools they’ve already got.

Theme 3: Your personal brand, deepening your client relationships and building your network are all part of your 'moat'

Jon made a point that doesn't get discussed enough I think. When companies restructure, decision-makers can ask AI tools to surface who’s visible, vocal and proactive.

If you can’t be found, you’re more vulnerable. His advice: stay on top of your AI skills, build your profile and invest in real human relationships (with your clients and your peers).

Kate suggested joining their local meet-ups as well as attending their 'Age of AI' event in London on Tuesday 10th March (if you have clients in pharma or biotech particularly).

Two AI trends to have on your radar

This week I've been playing around with Claude 4.6 Opus Extended Thinking and found an exceptionally useful use case for reviewing my business expenses for the last 3 years - and forecasting. I write about it here.

Here are a couple of additional trends:

1. Agentic AI is accelerating fast.

Deloitte found that 74% of companies plan to deploy AI agents within two years, but only 21% have proper governance for them.

This is exactly what Jon and Kate described – everyone’s building agents, but the guardrails are lagging behind. If you can help your clients navigate this responsibly, you’re instantly more valuable.

2. GEO is replacing SEO.

Kate made a good point about how doctors are now using ChatGPT for clinical advice – and the answers they’re getting aren’t necessarily from approved sources.

Pharma companies need to structure their content so AI can find it: FAQs, clear headlines, embedded references. This is AEO (Answer Engine Optimisation) or GEO (Generative Engine Optimisation) - seems the terms are being used interchangeably at the moment.

If you work with pharma clients, Jon and Kate’s Age of AI Europe event is packed with practical case studies and a chance to be in the room with your clients. Details at pharmabrands.ca. And if you want to evaluate your AI readiness in your account management role, you can take this quick 5 minute self-assessment and receive a report and a recording of my 'AI for Account Managers' webinar.