AI transformation

AI-native agency: why speed isn't progress, and the 5 levels that are

Racing to be AI-native without a finish line is the hare's strategy. The five levels of AI adoption show agencies where to climb, and where to stop.

Defy Editorial Published 8 min read Also available in: English中文
Black-and-white photo of a tortoise resting on a wide stone staircase beside a small red square tile, while a hare races off in the background.
The question behind this article

“What does it actually mean to be an AI-native agency, and how fast should we get there?”

Short answerAn AI-native agency is one where AI is built into how work flows, so frontline experts benefit without having to open a chatbot. You get there in levels, from chat-based prompting to agents sharing one source of truth. Most agencies don't need level five. Define the finish line, the time and the resources, then stop at the level that removes your bottleneck.

Key takeaways

  • An AI-native agency is one where AI is built into the flow of work, so frontline experts benefit without logging into a chatbot.
  • The five levels of AI adoption run from chat-based prompting to agent-lite, true agentic, the agent team and, finally, a function that runs itself.
  • Most agencies don't need level five: if level 2 removes the bottleneck, stop there, because the objective is progress, not speed.
  • Seats cost between $20 and $100 per person; real adoption costs time, resources and engineers, which is where independents need a different route from the holding networks.
  • Marketing Dive reports Liquid Death went through 17 versions of its AI operating system in about three weeks, but against a written goal: a sizeable budget run by two people internally.

What does it mean to be an AI-native agency, and how fast should you get there? Being AI-native means AI is built into how the work flows, so your frontline experts benefit without having to think about it. "How fast" is the wrong question. The useful one is: where is the finish line, how long will it take, and what will it cost to get there?

Brands are already setting their finish lines. Marketing Dive reports that Liquid Death is running media and retail-media optimisation on an AI operating system built with the agency Power Digital Marketing. The brand has been through 17 versions of Omega, Power Digital's operating system, in about three weeks. The stated goal is to run "a pretty sizeable budget" with "only two people internally".

Seventeen versions in three weeks is fast. But look at what sits in front of the speed: a destination written down in plain words. A sizeable budget, two people. Every iteration can be judged against that. Most agencies chasing "AI-native" have the speed and none of the destination.

What does "AI-native" actually mean for an agency?

Plenty of agency leaders define it as "everyone on the team uses ChatGPT". An agency founder speaking at an AI adoption session in Singapore this week offered a better test. He has spent 18 months trying to make his own roughly 20-person agency AI-native, and he compared the real thing to walking through Changi Airport without a passport. No queue, no forms. You just walk through.

For an agency, that means the frontline experts, the planner, the copywriter, the account lead, shouldn't have to log into ChatGPT at all. The AI should already be inside the flow of their work.

By that test, an agency where everyone has a chatbot tab open is not AI-native. It is AI-adjacent. People are still copying, pasting and re-explaining the client to an empty box every morning.

Why do agencies confuse speed with progress?

Because the fear is real. When every week brings a new model and every feed brings a solo founder claiming to have replaced a department, standing still feels like decline. The Singapore founder described his own response as pure hare: new model, new tool, everyone on a code account, Fridays given over to building. What was missing was the finish line. Nobody had defined what they were racing towards.

The tortoise wins the fable not because slowness is a virtue, but because every step is deliberate. His reframe for agencies: define the finish line, how long it will take to get there and what resources you need to bring along.

Agencies feel this pressure more than most. Clients ask what you are doing with AI. New-business teams want something impressive to say in the pitch. The temptation is to have an exciting answer rather than a useful one.

What are the five levels of AI adoption?

The most useful slide in the talk was a staircase. As the diagram shows, it has five steps, and each one asks more of your context, your people and your engineering. The level names are his; the agency examples are ours.

LevelWhat it looks likeAn agency example
1. Chat-basedEvery input typed or pasted manuallyA strategist pastes a brief into a chatbot and asks for creative territories
2. Agent-liteSaved custom prompts and projectsA PR team keeps a project per client with tone-of-voice rules and boilerplate
3. True agenticIndividual agents in your system, with context establishedAn agent drafts the weekly media report from connected platform data
4. The agent teamAgents share one source of truth and work togetherA listening agent flags a competitor launch; a reporting agent adds it to the client update
5. The function runs itselfPeople set direction, review and make the judgement callsRoutine monitoring and reporting run end to end; the team reviews and decides

The jump from level 2 to level 3 is where agencies tend to stall. Below it, AI lives in individual habits. Above it, AI lives in your systems, which means someone has to build, connect and maintain them.

Staircase diagram of the 5 levels of AI adoption: 1 Chat-based, 2 Agent-lite, 3 True agentic, 4 The agent team, 5 The function runs itself.
The five levels of AI adoption, from chat-based prompting to a function that runs itself. Framework shared at an AI adoption session in Singapore, Oct 2026.

Does every agency need to reach level five?

No, and the talk was emphatic about it. If level 2 solves your bottleneck, stop there. The objective is progress, not speed.

That plays out very differently by agency type. A small PR consultancy whose bottleneck is first drafts may be well served at level 2, with well-built projects holding each client's voice. A media agency drowning in cross-platform reporting probably needs level 3 or 4, because its bottleneck is data moving between systems. An influencer agency managing hundreds of creators may need agents that share one record of who agreed what, and when. A creative shop whose bottleneck is the brief may not need to climb at all until the brief is fixed.

Climbing past the level you need is not ambition. It is maintenance you have signed up for without a reason.

Why does the rush keep happening?

Social Change Theory helps explain it. Industries change when technology, habits and institutions shift together. When technology races ahead of the norms and structures around it, the gap fills with anxiety, imitation and shortcuts. People adopt because others are adopting, not because they have decided where they are going.

In agencies the casualty is integrity: of the work, of the process, of the promise made to the client. Rushed AI produces confident output nobody has checked and workflows nobody can maintain. The insight behind this piece puts it simply: in the pursuit of speed, don't let integrity be the casualty.

What does real AI adoption cost an agency?

Less than you fear for seats, more than you think for everything else. The Singapore founder put a seat at somewhere between $20 and $100 per person. That is the cheap part. Real adoption, he argued, takes time, resources and engineers, and engineers are expensive.

That is the asymmetry independents face. Holding-company networks have spent millions on analytics, AI and intelligence stacks. Liquid Death built its system with an agency partner that brought the operating system. An independent of 20 or 60 people can't easily hire an AI team, and shouldn't build one just to keep up.

This is why Defy exists: to give independent agencies the same analytical and AI capability as the holding networks, without the build cost or the maintenance burden. You can see how the pieces fit together on the Defy platform. Buying capability lets you climb a level when the bottleneck demands it, instead of hiring for a staircase you may never need.

How do I set a finish line for AI adoption?

Think tortoise. Six deliberate steps, written down before anyone opens a new account.

  1. Name the bottleneck. One process, one place where the work gets stuck. Not "AI strategy".
  2. Write the finish line in business terms. "Pitch research ready in two days, not five", not "use AI in new business".
  3. Estimate the time honestly. Include learning, testing and the dip in output while people adjust.
  4. List the resources. People's hours, engineering help, tool budget, and who maintains it afterwards.
  5. Choose the lowest level that clears the bottleneck. Try level 2 first if it might work. Climb only when it doesn't.
  6. Set a review date. Check progress against the finish line, then stop, adjust or climb, deliberately.
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How Defy helps

Defy gives independent agencies the analytical and AI capability the holding networks spent millions building, without the build cost or the maintenance burden.

  • Defy Monitor delivers live competitor, audience and conversation intelligence on every client and category you work in.
  • Defy MCP lets your team interrogate that data inside Claude, prompting it like a co-worker, so there is no new dashboard between your experts and the answer.
  • Defy Agents run agentic workflows for repetitive delivery, for when your bottleneck genuinely calls for level 3 and above.

Decide your finish line first. Then talk to us about the shortest route to it.

Frequently asked questions

Is an AI-native agency one where everyone uses ChatGPT?

Not really. If everyone has a chatbot open but still pastes in briefs and re-explains clients every day, AI sits next to the work, not inside it. A more useful definition is that AI is built into the flow of work, so frontline experts benefit without logging into a separate tool, the way a passport-free airport gate removes the queue.

Do we need to hire AI engineers to become AI-native?

Only if you plan to build and maintain the systems yourself. Seats are cheap, but real adoption at level 3 and above needs engineering time, and engineers are expensive. Many independents are better off buying capability that is already built and maintained, and keeping their own people focused on client work and judgement.

What is the difference between agent-lite and true agentic AI?

Agent-lite means saved custom prompts and projects: useful, but each person still drives the tool by hand. True agentic means individual agents sit inside your systems with context already established, so they can work on connected data without someone pasting it in. The jump usually needs engineering, data access and someone accountable for maintenance.

How do we know when to stop climbing the levels?

When the bottleneck you set out to fix is fixed. If saved prompts and projects at level 2 clear it, stop there and move on to the next problem. Climbing further adds systems to build and maintain without a matching benefit. Review against the finish line you wrote down at the start, not against what competitors claim to be doing.

Sources

  1. How Liquid Death is building an AI-native marketing organization — Marketing Dive, 2026-10-07

Why we wrote thisWe wrote this because agency leaders keep asking what the latest AI trend means for them, and a Singapore founder's account of 18 months chasing "AI-native" offered a more useful question: where is the finish line?

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