AI Reshapes Agency Billing: Time-Based Pricing Replaced by 'Intelligence Hours' in 2025

• In 2025, AI fundamentally altered agency billing, moving from execution-based hours to 'intelligence hours' due to automation.
• AI copilots, agentic AI, and multimodal AI now handle repetitive tasks, making traditional time-based billing obsolete.
• Agencies now charge for strategic oversight, AI orchestration, data-driven planning, and ethical governance.
• Brand budgets shifted from traditional ads to AI-powered personalization, immersive experiences, and first-party data strategies.
• New roles like AI Workflow Strategists and Prompt Engineers emerged, focusing on oversight and strategy over manual execution.

Why It Matters: AI transformed agency billing, valuing strategic intelligence and oversight over manual execution.