The AI-First Mandate: Are Australian Agencies Ready?

This article was first published in B&T

When Shopify's CEO Tobi Lütke issued his now-famous directive that teams must "prove AI can't do it before adding headcount," he wasn't just making a statement - he was setting a new operational standard. His recent memo, which positioned AI as the default expectation rather than an optional tool, represents a fundamental shift in how global technology companies are approaching work in 2025.

The message from tech CEOs is clear: “reflexive AI” usage isn't just encouraged - it's required. This AI-first mandate has swept through major technology companies worldwide, from IBM's hiring freeze on 7,800 back-office roles to Meta's Zuckerberg claiming AI will code like mid-level engineers by year-end. 

The question now facing Australian agencies is whether they're prepared to make similar cultural and organisational changes.

The Global AI-First Movement

The transformation happening in global tech companies provides a blueprint for what AI-first actually means in practice. Lütke's approach at Shopify goes beyond encouraging experimentation - it rewrites hiring policies around AI capabilities. As he explained, "Using AI effectively is now a fundamental expectation of everyone at Shopify. It's a tool of all trades today, and will only grow in importance."

Perhaps the most systematic approach came from Duolingo's CEO Luís von Ahn, who issued a memo that outlined contractor replacement wherever AI could handle the work. "We're becoming an AI-first company. That means if AI can do something, we're going to let it - whether that's content generation, support, or even code. This isn't about saving money. It's about focusing our people on what only they can do."

While Duolingo quickly walked back some of the harsher elements of the memo, the underlying principle remains: companies are fundamentally reorganising around AI capabilities rather than treating them as add-on tools.

This isn't just about using ChatGPT occasionally. The approach treats AI not as an exception, but as the starting point for every task.

Australian Agencies Taking the First Steps

While Australian agencies haven't issued the same sweeping mandates as Shopify and Duolingo, some are starting to lay the groundwork for transformation. The changes are happening across leadership, team structures, and daily workflows.

TBWA\Melbourne became possibly the first Australian agency to elevate AI to the C-suite, appointing Lucio Ribeiro as Chief AI & Innovation Officer. Ribeiro's mandate is to "weave AI into both internal operations and client offerings," treating AI as a "co-pilot, not an autopilot" for creativity. 

Meanwhile, Howatson+Company has launched an AI-enabled creative technology company Plus Also Studios, with Endeavour Group as its foundation client. The agency is developing proprietary datasets and AI-driven production solutions tailored to clients, ensuring AI becomes integrated into the fabric of campaigns rather than remaining siloed.

Upskilling Over Downsizing

Unlike some global companies that have used AI adoption as justification for layoffs, Australian agencies are emphasising upskilling and role evolution. Publicis Groupe ANZ has focused on "augmenting roles with technology rather than cutting jobs," according to their people & culture lead.

"As agencies embrace emerging technologies, there will be a need for employees to augment their skills...develop a growth mindset and willingness for continuous learning," says Publicis Groupe ANZ's leadership. This approach reflects a broader cultural shift where traditional junior tasks are automated, but agencies retrain talent for data analysis, AI prompt engineering, and strategic creative roles.

This contrasts with the more direct approach taken by companies like Duolingo, which explicitly outlined replacing contractors with AI before moderating the message. 

Australian agencies are taking a more measured approach, focusing on enhancement rather than replacement.

Real Creative Impact

The integration of AI is already yielding tangible creative outputs. Mars Wrigley, working with creative agency Thinkerbell and media agency EssenceMediacom, ran Australia's first AI-driven Amazon Ads campaign for the Mars Bar. The campaign used generative AI to parse customer actions and personalise rewards in real time, with impressive results: online sales jumped 67% during the campaign.

"The use of generative AI gave us an entirely new way to engage audiences and immerse them in the brand story," said Mars Wrigley's content lead. This campaign exemplifies creative work that's only possible with AI - turning mass marketing into personalised, trigger-based experiences for thousands of consumers.

The Innovation Labs and Internal Tools

Some agencies are going beyond using existing off-the-shelf AI tools (like ChatGPT or Midjourney) to building their own solutions. Independent agency Paper Moose in Sydney developed a proprietary AI concept-testing tool in 2025 that can pre-test creative ideas by simulating audience reactions.

"We're ditching human panels," the agency proclaimed, as their AI system can predict which concepts resonate, "championing good marketing science" without the cost or bias of human testers. This internal innovation demonstrates the cultural willingness to experiment and invent new processes around AI.

The Gap Between Aspiration and Mandate

While Australian agencies are making genuine progress, there's still a gap between what they're doing and the comprehensive mandates issued by global tech CEOs. 

Most Australian agencies are encouraging AI adoption and providing training, but few have made it a fundamental requirement tied to performance reviews or hiring decisions.

Unlike Duolingo's somewhat drastic approach to contractor replacement or Shopify's hiring policy changes, Australian agencies are largely treating AI integration as cultural evolution rather than organisational revolution. The question is whether this represents a more thoughtful, measured approach to transformation, or whether Australian agencies risk falling behind.

Looking Forward

Global tech companies have shown that AI-first cultures are possible when leadership makes clear, enforceable policies. The CEO’s of companies like Duolingo and Shopify have demonstrated that organisational change around AI is not just important, but critical for staying competitive.

Australian agencies are building the foundation with new roles, team structures, and workflows, but the next step may require the same level of organisational commitment that global tech companies have demonstrated.

As one industry observer noted about the broader shift: "2023 was about 'wow.' 2024 is about 'how.' And 2025 will be 'now.'" Australian agencies leading with AI integration are positioning themselves to deliver more innovative work, but whether they'll issue their own version of the AI-first mandate remains to be seen.