Executive Briefing: Thursday 27 August

A critical re-evaluation of AI spending for measurable ROI is underway as costs rise and benefits are scrutinised. Concurrently, customer data platforms are evolving to fuel AI agents with real-time, governed customer context, fundamentally reshaping CX. Meanwhile, traditional media like Out-of-Home advertising shows strong seasonal impact, and agency wins highlight the enduring need for creative strategy in competitive retail. AI spending faces ROI scrutiny in the enterprise The cost of AI is prompting a healthy re-evaluation of its real-world value. Microsoft has cancelled Claude Code licenses over costs, and Uber's COO finds AI expenses increasingly difficult to justify. Many companies rushed to adopt AI, leading to ballooning IT costs and uncertain productivity gains. Experts note that AI currently yields the most concrete returns in coding tasks, urging businesses to focus on revenue-driving use cases and establish usage limits. The shift is towards more efficient and disciplined AI application, moving past "tokenmaxxing" to tangible business outcomes and integrating AI into strategic workflows. Customer data platforms evolve for the agentic AI era The role of Customer Data Platforms (CDPs) is being redefined, shifting from merely unifying customer profiles to providing real-time, trusted context for AI agents. Hightouch has rebranded as an "Agentic CDP", and Databricks entered the market with its CustomerLake, signalling that CDPs are becoming intelligence layers for AI-driven decisions across marketing, sales, and service. Buyers should now prioritise open architecture, interoperability, robust governance, and data quality to ensure AI systems operate with accurate, compliant information and can respond to evolving customer behaviour in real-time, rather than focusing solely on traditional data unification. Out-of-home advertising sees strong summer performance Ooh!media reports that Out-of-Home (OOH) advertising delivers significant impact during the Australian summer, a period marked by increased consumer activity and spending. Australians spend an estimated $91 billion on discretionary items over summer, with OOH street sites near beaches experiencing a five-fold audience uplift. This trend highlights a crucial opportunity for brands to connect with consumers in high-attention environments when they are more active and receptive. The data reinforces the strategic value of OOH investment during seasonal peaks, providing a strong rationale for advertisers to maintain visibility in a period often overlooked by competing media. Creative agencies bolster fashion retail brand strategy Paper Stone Scissors (PSS) has been appointed as the creative agency of record for Myer Group's fashion brands, Dotti and Portmans. This expands PSS's remit to lead full-service creative and production, including seasonal campaign strategy, content, and social. The win underscores the vital role of creative agencies in developing distinctive brand identities and driving commercial effectiveness within the highly competitive and content-saturated fashion retail sector. Brands are increasingly seeking partners who can balance brand world-building with measurable sales outcomes, reflecting a market demand for integrated creative solutions that resonate with evolving consumer mindsets.