By Rebecca Steer, Commercial partner at Keystone Law
Many of the trends shaping creative and digital agencies in 2026 will feel familiar: AI, cybersecurity, pressure on budgets and sustainability, but the difference this year is about maturity and execution.
Various emerging trends or legal uncertainties have now crystallised, and these issues are firmly embedded in how agencies operate, contract and plan for the year ahead. Let’s examine a few of these agency trends and their potential impact from a legal perspective.
Gen AI
Gen AI is now integral to agency operations, from ideation and content creation to testing, optimisation and delivery. Clients of agencies are no longer asking if AI is being used, but how it is being governed and integrated into outputs. Contracts are being rewritten to accommodate new IP and risk considerations, and proactive agencies have integrated tailored policies and legal best practice into workflows.
Agencies are adjusting the traditional SEO strategies to ensure Gen AI tools, as well as traditional search, lead consumers to their campaigns and brands.
Personalisation
Demand for personalised digital experiences remains strong, with brands expecting agencies to deliver increasingly tailored content across channels. This requires balancing creativity with transparency and consumer trust.
Agencies that specialise will drive value for brands, especially in a year where online safety, data privacy, price transparency and digital marketing will be heavily scrutinised by regulators such as the Competition and Markets Authority, Ofcom, and the Information Commissioner’s Office. Those agencies which will succeed will implement the online consumer changes required by the Digital Markets Competition and Consumers Act and Online Safety Act creatively for brands.
Cybersecurity
Following a raft of high-profile cyber-attacks last year, cybersecurity is a core agency risk. Agencies sit at the centre of complex digital supply chains, with many holding client data, managing platforms, deploying tools and coordinating third-party providers. As we have seen, cyber incidents can disrupt delivery, damage brand reputation, and trigger knock-on issues across clients and suppliers. Any incident could also lead to unexpected costs, fines and contractual damages.
The smart agencies have leaned into this risk and implemented bespoke response plans for their workstreams and supply chains. These agencies have considered cyber risk in collaboration with clients and suppliers, and baked risk allocation and outcomes into contracts and insurance cover.
Recalibration, efficiency and smarter growth
Agencies are recalibrating thoughtfully, given the efficiency being driven by AI investment. Many have invested heavily in training and experimenting with a wide suite of AI tools to support innovation, growth and margins. Strategic consolidation between niche agencies is also driving growth as clients expect greater value from external teams.
A greater focus on IP development to commoditise and productise is now being prioritised. The legal challenge is to ensure that IP, especially copyright, is protected and can be monetised in this new AI era. Agencies should pay attention to the expected Economic Impact Assessment and Report on the use of copyright works in the development of AI systems expected in March 2026.
Employment Rights Act 2025
Many agencies have restructured to better leverage AI and redefine roles. Proactive agencies have planned how to implement the UK’s Employment Rights Act 2025 to avoid losing talent and momentum. From April onwards, employers and employees can expect significant changes, including enhanced worker protections, strengthened flexible working rights, and reforms impacting zero-hours arrangements.
Sustainability
Sustainability has been a major focus for companies over the past few years, and expectations remain high with ESG obligations increasingly cascading down supply chains. Agencies are seeing more client-driven requirements around reporting, compliance, and environmental commitments, along with consumer expectations for brands’ ESG credentials. These expectations are now hard-wired into contracts, making it critical to understand what is being agreed (and how risk is allocated) before signing.
Looking ahead to 2026
Many of the themes discussed above were already emerging last year, including AI adoption, personalisation, efficiency, workforce change and sustainability. What’s changed in 2026 is the shift from exploration to execution:
- AI is now embedded in delivery.
- Personalisation is expected.
- Cyber risk is now a real board-level concern.
- Regulatory and employment change is landing in 2026.
The agencies best positioned for 2026 are those that learned from 2025: investing early, building trust and value into client relationships and embedding legal, commercial and operational thinking into workflows.
