AI to Cut SEO, Content Agency Fees by 25-75%, Former Google Exec Says

Image credit: Search Engine Journal

Global marketers should renegotiate agency contracts for search engine optimization and content services, anticipating fee reductions of 25 percent to 75 percent due to artificial intelligence, according to former Google executive Avinash Kaushik.

Kaushik, now chief strategy officer at Human Made Machine, stated that the convergence of advanced AI, AI-powered advertising platforms, and real-time system integration is automating tasks traditionally performed by humans, thereby justifying lower costs.

He argued that many core marketing agency functions, including account architecture, keyword and audience structuring, campaign build-out, manual bid adjustments, and reporting, can now be largely handled by AI systems.

The advice specifically applies to SEO, content, and geo-targeting work, with Kaushik citing keyword research, manual rank tracking, and templated technical audits as examples of tasks increasingly automated by AI.

Kaushik proposed a new contract structure for agencies, suggesting a lean base retainer making up 40 percent to 50 percent of the total fee, primarily for governance tasks. Project fees, accounting for 30 percent to 40 percent, would cover tasks requiring human judgment.

He also recommended incorporating outcome incentives, representing 15 percent to 25 percent of the contract value, directly tied to measurable profit or revenue lift for the client.

Kaushik previously held senior roles at Google and has advised companies such as Intuit and DirecTV on digital marketing strategies.

Source: Search Engine Journal