Technology-enabled democratization: Impact of generative AI on content marketing agencies

This study investigates how technology-enabled democratization affects market structures and incumbent firm strategies, with a focus on generative AI and content marketing agencies (CMAs). While past technologies augment marketing capabilities, generative AI redistributes core creation, technical, and economic capabilities—challenging traditional agency–client dynamics and prompting strategic reconfigurations among incumbent firms. Drawing on a qualitative study of 22 professionals from CMAs and their clients, we develop a framework showing how generative AI enables widespread content marketing capabilities, alters content marketing market structures, and forces CMAs to redefine their value propositions. Our findings reveal a shift from execution-based services to expertise-driven roles, including creative consulting, hyper-personalization, and AI-enabled service innovation. We contribute theoretically by extending the concept of technology-enabled democratization, offering a structured framework that links capability redistribution, market restructuring, and incumbent response strategies. Practically, we propose a playbook to help CMAs adapt to this transformation through (1) strategic repositioning, (2) operational integration, (3) ethics, regulation, and compliance, (4) and market and client engagement. Overall, the study offers conceptual and managerial insights into the evolving interplay between generative AI, market democratization, and marketing agency transformation.