Global companies are increasingly directing advertising creative work into centres in India where new AI tools are being used to compress production cycles and limit dependence on external agencies. Executives at Kimberly-Clark, Catalyst Brands - the parent of J.C. Penney - and Target India told Reuters that their India-based global capability centres now apply AI across marketing functions, from creating product images and videos to influencer selection and campaign optimization.
For a wide range of major advertisers - from consumer goods manufacturers to truck makers - the ability of AI to speed and scale campaign generation is proving attractive as they pursue lower marketing costs and faster response times.
Kimberly-Clark provided one of the clearest examples of the shift. The company said an India-built AI platform has reduced its content production cycle from nearly a month to a matter of hours, while also supporting influencer identification and localization of campaigns across different markets. At a summit in Bengaluru, Kimberly-Clark India head Deena Dayalan said that content creation that two years ago took 24 days now "only takes two hours" because of AI.
Catalyst Brands is testing computer-generated images and video for online product listings, which company India Managing Director Nihar Nidhi said could reduce the need to ship inventory worldwide for photoshoots. "Bangalore is at the nose of the rocket in terms of piloting and creating certain prototypes," Nidhi said, adding that "we are very close to being able to put some of these into production."
At Target India, copywriters working with Roundel - Target's advertising business - are using AI to produce ads more quickly, enabling the company to react faster to shifting consumer trends. "Our business partners are actually seeing more value come back through that flywheel because we’re able to move more," India President Andrea Zimmerman said, noting AI is also opening opportunities in areas such as loyalty and personalization.
Industry response and analyst views
Some analysts say increasing AI adoption could place pressure on the conventional ad agency model. The technology may also mitigate talent shortages that have limited companies seeking to insource more advertising tasks.
"Right now, we see a significant trend in building in-house agencies - partially driven by the promise of AI," Gartner analyst Jay Wilson said. He added that agencies that historically competed on size and scale may find that is no longer a meaningful differentiator, and that strategic and creative thinking will become the main differentiators going forward.
A Gartner survey of 405 senior marketing leaders conducted last year indicated nearly all respondents were using AI in some form, and that investment in AI accounted for more than 15 percent of marketing budgets and was growing.
Despite the momentum, some observers said that public distrust of AI and the specialised skills that traditional agencies provide will preserve demand for outside partners, particularly among clients with large advertising budgets. "If mediocre is all you need, then absolutely you can do it yourself. But that’s not where the money is anyways," said Brian Wieser, CEO of advisory firm Madison and Wall. "The question remains, is there value to expertise?"
Implications for advertisers and markets
Advertisers using AI at India-based capability centres report both time and logistical savings: faster campaign production, more rapid localization for different markets, and reduced need to move physical inventory for photography. Pilot projects for computer-generated product visuals aim to substitute physical photo shoots, while AI-driven media and influencer selection tools are being used to optimize campaigns.
At the same time, industry watchers caution that the shift will not uniformly eliminate the role of agencies. Specialisation, creative expertise and client demand for high-quality, differentiated campaigns are cited as reasons agencies may continue to play an important role, especially where budgets are large or brand stakes are high.
Where companies land on the balance between in-house capability and external partners will depend on how they weigh speed and cost gains from AI against the value of specialised creative expertise. The trend is already reshaping how advertisers allocate talent and budget, particularly across consumer goods, retail and sectors that rely heavily on visual product presentation.