In 2025, things have changed. Not because “AI will replace everything,” but because AI tools have matured enough to give businesses more options, speed, and control. Here’s why:
1. The $10k agency model was built for a different era
Traditional agencies justified their cost by bundling strategy, production crews, editors, and distribution. That made sense when producing high-quality video was only possible in a studio.
But today, AI video platforms like Runway, Krea, BasedLabs, Lovart.ai, Kittl.com and Artificial Studio provide studio-level output in hours, not weeks. Agencies still have value, but the monopoly on professional visuals is gone.
—
2. Quality no longer requires massive budgets
Critics often assume AI generated video looks cheap or generic. That was true two years ago. Not now.
Modern AI video models like Google Veo 3, Kling 2.0, SeeDance 1.0 Pro, and Wan 2.1 deliver motion, textures, and storytelling that rival agency work. Tools such as Artificial Studio’s Animate 2D images or Create Video let small businesses create cinematic sequences without renting cameras or hiring crews.
The gap between “$10k agency video” and “AI powered video” is closing fast, and in some cases, already gone.
—
3. What agencies still get wrong: speed and iteration
Agencies often deliver a single polished cut weeks later. But marketing doesn’t move at that pace anymore.
Launching a product? You need 10 variations for different audiences and platforms—fast. Tools like Edit Video let teams create, refine, and scale campaigns in real time.
Agencies can offer creativity, but AI offers agility. In 2025, agility often wins. The good thing is, that if you are creative, then you can have both!
—
4. The rise of hybrid strategies
This doesn’t mean agencies are obsolete. The most forward thinking agencies are already integrating AI tools into their workflows. Instead of charging $10k for production alone, they’re shifting to concept + distribution, using AI platforms to generate assets at scale. Agencies are more like curators now.
If you’re a business, the question is no longer “Agency or AI?” but “What mix of agency expertise and AI tools gives me the best ROI?”
—
5. AI democratizes video, but strategy still matters
Not every business should abandon agencies. If you need storytelling, brand positioning, or a complex multi-channel rollout, human expertise is invaluable.
But if you’re paying $10k just to get a polished video file, you’re buying into an outdated system. AI now gives startups, e-commerce shops, and even mid-sized companies the power to:
- Animate product photos into engaging ads (with Animate images)
- Localize content instantly (using Video Translate)
- Remove messy backgrounds (via Video Background Remover)
The power once locked inside agencies is now available to anyone with a browser.
Best Practice: rethink your video workflow
Don’t frame the question as “AI vs. agency.” Frame it as:
- What parts of the process require human creativity?
- What parts can AI automate without losing quality?
- How much speed and scalability do we need?
For many businesses, the honest answer is: you don’t need a $10k agency anymore, you need a smarter workflow.
And in 2025, AI video platforms like Artificial Studio make that possible. Find this and 50 other AI tools for agencies and creators who move fast on our platform. Create video, image, branding & marketing content.
These AI tools are designed to complement, not replace, the creators role. Creativity isn’t about the tool itself. It’s about how we use it.
Mariko - Product Marketing Manager
—
Related reading: