Imagine two senior ex-McKinsey consultants sitting in a coworking space—just laptops, no juniors, no massive team behind them. Using PerplexityPro for instant market insights, AI agents to run customer interviews, and Gamma.app for flawless strategy decks, they outmaneuver McKinsey itself to win a Fortune 500 contract. Crazy, right?
Not according to a couple of articles by Iwo Szapar who interviewed 384 specialists from the consulting industry—insiders who say this scenario isn’t science fiction—it’s happening today. The logic is clear: if artificial intelligence can empower a two-person consultancy or a small agency to compete against industry giants, surely others can leverage AI to do the same.
An adaptation of a talk given by our founder Marek Mrazik at the annual GYDA Summit 2025 for agency leaders.
Table of Contents
Big vs. Small agency: The Traditional Scoreboard
I’ve talked to hundreds of agencies—big, small, scrappy, and global. And let’s face it: the game has always been relatively balanced. Big shops had their muscle. Smaller ones had speed and creativity.
When I asked ChatGPT to break down the classic pros and cons, here’s what came up for small agencies:
- Lower prices (less overhead)
- Faster onboarding and delivery
- More agility
- Closer client relationships
- Direct involvement of senior or founding team
- More accountability
And here’s the twist: none of that is disrupted by AI. In fact, most of it gets enhanced.
Where the Playing Field Shifts
Now let’s flip the scoreboard and look at the traditional disadvantages of small agencies—the reasons big ones used to win. Here’s where it gets interesting:
1. Capacity Limits
Previously, handling large or complex projects meant hiring more people – a major challenge for small agencies. AI now automates many tasks, reducing headcount needs dramatically. Where once 20 people were required, AI means you might need 10 today – or even 5 next year. Size, it seems, matters less.
2. Scalability
Clients worry small agencies can’t scale because founders become bottlenecks. AI acts as “10 extra hands,” extending founders’ capacity and enabling them to manage more work without burning out.
3. Global Reach
Big agencies claim global reach for localization, translations, and market insights. But AI tools like ChatGPT provide instant language support and cultural context, making it easier for small agencies to serve global clients effectively.
4. Specialists
Large agencies boast specialists in every niche-from TikTok optimization to Gen Z research. AI, however, is automating or augmenting many specialist roles, democratizing access to expertise that was once costly or unavailable.
5. Proprietary Tools
While proprietary platforms have been a stronghold for big agencies, AI-powered tools are increasingly accessible to all. This democratization levels the tech playing field.
6. Market Research
AI platforms like Perplexity enable rapid, data-rich research that used to require large junior teams. Synthetic research through AI can also yield more honest consumer insights, bypassing biases common in traditional focus groups.
Where Do Large Agencies Still Hold Ground?
There are a few areas where big agencies maintain an edge, even with AI in play:
- Brand Trust, Recognition, and Awards
Long-standing reputations and prestigious accolades still influence client decisions. AI won’t change that overnight. - Consistency of Delivery
Large agencies historically deliver more consistent outcomes due to scale and established processes. However, AI-driven automation is helping small agencies close this gap fast. - Management Operations and Processes
Bureaucracy slows big agencies, and AI won’t necessarily fix this. This area remains a mixed bag.
AI’s Scorecard: Nine Points for David, One for Goliath
Summing it up:
| Advantage Area | Winner |
| Capacity Limits | Small Agency |
| Scalability | Small Agency |
| Global Reach | Small Agency |
| Specialist Expertise | Small Agency |
| Proprietary Tools | Small Agency |
| Market Research | Small Agency |
| Brand Trust & Recognition | Large Agency |
| Consistency of Delivery | Small Agency |
| Management & Operations | Draw |
Nine advantages clearly tip toward small agencies. AI has become a powerful equalizer – if not a game-changer – for the Davids of the agency world.
The Final Question: Are You David or Goliath?
Observing a surprising paradox: many small agencies act like Goliath, weighed down by legacy mindsets and processes, while some large agencies behave like nimble Davids. Ultimately, the choice is yours.
AI gives small agencies a clear advantage – but only if they embrace it wholeheartedly. Those who “jump in” and integrate AI into their workflows stand to win.
For large agencies, the challenge is to shed bureaucratic inertia and find new ways to leverage AI effectively.
Embrace Your Edge with Allfred.io
At Allfred.io, we empower agencies of all sizes to harness AI-powered tools for smarter project management, billing automation, and seamless team collaboration. The future favors those who adapt fast and innovate boldly.
Ready to be David in your agency story? Let’s start the journey together.
