
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
Written by
Saeed Ashif Ahmed
I’m Saeed, the CTO of Rabbit Rank, with over a decade of experience in Blogging and SEO since 2010. Partner with us to ensure your project is handled with quality and expertise.
Keep reading
Related Articles

Google offers retailers AI performance insights in Merchant Center
Google’s new AI performance insights in Merchant Center offer retailers grouped shopping query data for AI Mod...

Google updates AI search ad rules, launches new conversion metric
Google clarifies AI Search eligibility, emphasizing AI Max and Performance Max, and introduces Qualified Futur...

YouTube Demand Gen Offers Ad Opportunities for Small Budgets
Learn how to run highly effective YouTube ad campaigns with a smaller budget using Demand Gen, strategic targe...