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Is This The End of AI Agencies? (Brutal Truth for 2025)

By Albert Olgaard

Summary

## Key takeaways - **AI Market Saturation Isn't Necessarily Bad**: A saturated AI market signifies that money is being made and there's a genuine demand for AI services, rather than indicating it's too late to enter the space. [02:13] - **Focus on Benefits, Not Tech Features**: Successful AI agencies focus on the results and benefits AI provides to clients, like saving time or money, rather than getting bogged down in technical details of models or tools. [04:04] - **AI Agencies are a Sales & Marketing Business**: New AI agency owners should prioritize sales and marketing to acquire clients, rather than solely focusing on the technical aspects of setting up automations. [05:28] - **AI Technology's Compounding Growth**: Massive investments in AI are driving rapid, compounding technological advancements, meaning AI capabilities will accelerate exponentially, not stagnate. [06:15] - **AI Agencies Adapt with Evolving Tech**: As AI technology improves, AI agency products become more valuable and in-demand, leading to increased revenue and the need for updates on previous implementations. [08:06] - **AI is the Internet's Successor**: AI is compared to the internet's transformative impact, suggesting that companies failing to adopt AI will face obsolescence and bankruptcy, similar to Blockbuster. [11:09]

Topics Covered

  • Saturated markets signal opportunity, not decline.
  • Sell AI's results, not its technical features.
  • AI's compounding tech means products constantly improve.
  • Small businesses will always pay for AI services.
  • AI is the internet of our generation; adapt or die.

Full Transcript

I hear this almost every day. People are

talking about an AI bubble. They are

saying that if you're hearing about it

now, then it's already too late. But is

that actually the case? In this video,

I'm going to break down all the things

that I've heard and my honest opinion if

it makes sense to go into AI right now

or not. The brutal truth, is it too late

right now to go into AI? When I scroll

on social media on X and on Instagram, I

see a lot of people comparing AI to

things like NFTTS, drop shipping, the

prime of SMMA, and crypto as this brand

new business model that's going to fade

out like all the other things in the

space. And at one point, that is true.

Building an AI agency the last couple of

years has been really, really easy

compared to many other business models.

And the reason for that is that AI has

so much hype correlated to it. Everyone

wants to be using AI. People are hearing

the news that the US is investing

something crazy like 500 billion into

AI. And every business owner is think

like, okay, I get I got to get to this

AI thing. I got to use chat GBT. It's

going to speed my process up. So behind

AI right now, there is a bunch of hype

which also I must admit these business

models right here used to have a lot of

hype as well when they just came out.

But will AI then end up like NFTTS right

now and dip like crazy? Let's find out.

Because if you start cold calling a

bunch of local businesses and you start

pitching them voice agents and you start

pitching them automations, what you will

hear is that a lot of local businesses

has actually been pitched AI services

already. So in some ways the market is

getting more saturated every day and of

course if they are getting pitched AI

services some of the AI agencies also

succeeding in closing and making deals.

So what's happening is that AI is being

implemented into local and big

businesses. That's just the reality of

it. I'm completely transparent that

people are crushing it in the AI space

right now. And when a lot of people are

crushing it in one space, the space

becomes saturated. What we got to figure

out though is that saturated, even

though it has a very negative tone to

it, it's actually not that bad of a

thing. Let me explain why. When a market

is saturated and there's a lot of

players in the market, it also means

there's a lot of money to be made. It

means that AI agencies are closing

clients and that there's a demand for

AI. So, what you see on Instagram

comments that people say this is already

too late. This business model is already

dead. It's not really the case. There

are so many people closing crazy deals

right now in the AI space. I saw one in

our school group, his name is Reno. He

closed a $4,000 upfront deal and then

$500 a month in retainer from his first

ever client. And the only reason that he

could do this is because there's a

demand for it. And when there's a demand

for it, the market will also start to

get saturated. That's just how business

works. So we need to stop looking at

this word saturated as a bad thing. It

literally just means that people are

making money in the space and people see

that and then they flock to that same

space. So, how do you stand out? What's

also going to happen in a saturated

market is that the greatest players, the

ones that understand marketing and

understands the selling of AI agents,

they're going to get a very large piece

of the pie where the ones that don't

understand this one thing, they're going

to end up with way less. So, what do

these people understand that these

people don't? Well, from what I've seen,

and I have a school community with over

100,000 members that's completely free.

I speak to a lot of AI agency owners on

the daily. The one thing I see in

everyone that is successful is that they

understand how to sell it. What most AI

agencies do is that they focus way too

much on the tech. They explain to the

client, "Oh, we're using the newest

model. Oh, we're using the newest

tools." But if you think about it, a

local business like a hair salon, if you

explain to them that you're using the

newest model, they they don't really

care. They don't care about the tech.

They don't read about the newest

updates. They don't watch YouTube like

you do about this stuff. What they care

about is the results. And that's what

the people that are crushing it right

now are focusing on. They focus on how

the voice agent is better, the new

things that it can do for them. They

focus on the benefits rather than the

features. The features are things such

as the model or the tools. To be honest,

they don't really care about that stuff.

What they care about is how the AI

behaves to their customers or the time

it's going to save them setting up an

automation or the money it's going to

save them when they can fire their

accountant because now they have an

automation that does this. You need to

focus on what actually matters. And then

when you sell it and market it, you need

to focus on these things, what it

actually does for them. Because what

these AI agencies in red get wrong is

that when they go out and get clients,

they do cold email, they run ads, and

then they explain about these things.

Imagine imagine a local business getting

an email about the newest model. They

don't really care. What they care about

is what that new model can do for them.

And that's not only in the marketing and

the sales part. It also comes down to

what they actually spend time on. This

part spends way too much time watching

YouTube about the tech, about the new

model when they should be focusing on

the sales and marketing part of things

cuz that is really what this part

understands. They understand how to sell

and market AI services the right way.

Sometimes you have to understand what

business you are actually in because you

are not in the automation and tech

business. What you in when you're just

starting out is the sales and marketing

business. The hardest part is not just

following a YouTube video on how to set

up that automation. The hardest part is

going out, running the right ads,

selling it the right way, and acquiring

clients. That is the business you're in.

And you need to understand this in order

to win and to be prepared for the

future. I've also heard a lot of people

talk about the AI bubble. Oh no, because

there's so much hype and so much focus

around AI right now that it at some

point will come crashing down. At the

same time, you hear about companies like

Google, Meta, OpenAI investing billions

of dollars into new data centers and

into new technology. Here's why that's a

good thing. All this hype actually

benefits you like crazy. Because when we

get all of these investments into the AI

space as an AI agency owner, the

technology will start to move fast. We

get what we call fast technology. And we

have been able to see this. If you look

at what chat GBT felt like 2 years ago,

you would hate using it because the

technology is getting getting so much

better so quickly. And that's just

that's just to show how fast the

technology actually moves. And here

comes the crazy thing that not that many

people actually understand. The way that

this technology moves is that it's

compounding. So this is how good tech is

and this is time. What is happening is

that more and more money is coming into

the space and the technology is starting

to compound on each other. We even see

AI start to do a lot of the coding which

means that the technology will just move

even faster and that will result in a

compounding effect that kind of looks

like this. Right now we are maybe right

here. What's going to happen is that the

technology is going to start to move

faster and faster. AI is going to start

to do a lot of the coding and and when

that happens, it's really going to go

like this in terms of what AI is capable

of. What does that mean for us? Well, it

depends on how you position your AI

agency. What is important is that when

the tech becomes better, your products

inside of your AI AI agency also goes

up. Sam Alman himself actually talked

about this. He said that you can do two

things. You can either bet on the

technology is getting better or you can

bet on the technology already reaching

its limits and that's up to you if you

think the technology has reached its

point. I think that by positioning your

AI agency so it gets better when the

models gets better is by far the best

way of doing so. But what's going to

happen with our AI agencies when the

tech gets better? Many people think that

oh then AI agencies won't exist anymore.

But that is really not the case. And

here's why. Because when the tech gets

better, our products as an AI agency is

also going to get even better. This is

going to be things that like how good

our chatbots are at responding. This is

going to be how good our voice agents

are or it's going to be how good our AI

agent coders for our softwares are going

to be. So just understand that when the

tech gets better, our products will

automatically get better as well. And

why is that a good thing? Well, for two

reasons. Number one, our products will

instantly be more valuable. You'll be

able to sell it for more because it'll

be able to do more of the jobs that it

otherwise couldn't do. So, you'll be

able to sell it for more and you'll have

more demand for the product. A better

product means more demand means more

money. And the second reason is tackling

this issue right here with a lot of

local businesses already getting AI

implemented. If the tech is getting a

lot better, it means that the previous

tech that was implemented before the new

updates, those are going to be outdated.

And who do you think business owners are

going to come to when their tech is

outdated? Well, they can do two things.

Tech is outdated. Well, they're going to

pay more money to get it updated.

Sometimes I also hear this argument that

it's going to get so easy that they can

do it themselves. And the people that

say this are usually total beginners.

And let me explain why. This is both

right and wrong to some degree because

yes, the way that things are moving

right now is that it becomes easier and

easier to implement AI agents. For 5

years ago, you would have to only do

code. Now you have no code platforms

like Nadin, like build my agent, like

chat GBT that can help with a lot of

these things. So things are definitely

becoming easier and easier. Where they

are in the wrong though is what business

priorities are at the moment. a

hairdresser, they don't think about AI.

They don't see AI in their newsfeed all

the time. And the last thing that they

would do is go find a YouTube video on

how to set up an AI agent for

themselves. A lot of companies would

much rather pay someone else to do it

because running a small business is a

lot of work and trust me, they have a

lot on their plate already. So the

statement that we at some point will

reach a point where no one is going to

need AI services is completely wrong

because small business owners will

always have a lot on their plate. You

can take websites for example. Websites

used to be really hard. You needed to be

able to code back in the day in order to

set up a website. Now you have tools

like Shopify that makes it easy. But

even today, you still see web agencies

help with setting up websites and AI

agencies are going to be the exact same

thing. And how long was it since the

start of the internet? Over 20 years. So

even after 20 years, web agencies has

still survived. So saying that we're

going to reach a point soon where local

businesses don't need AI services

anymore is completely BS. Like I

mentioned, a lot of people compare AI to

things like NFTs, drop shipping, SMA,

and crypto. What I compare it to is the

internet. The internet absolutely

changed everything for a bunch of

industries. All of a sudden, newspapers

didn't sell anymore because people could

find that information on the internet.

Netflix went all in on this new internet

thing, which resulted in companies such

as Blockbuster going bankrupt. A lot of

experts are saying that AI is the

biggest invention that we have ever had.

And if you think that the business model

that helps implement the biggest

technology since the internet, that

that's not going to be a valuable

business model to run, then I'm sorry

for you because the exact same thing is

going to happen. Every company is going

to have to implement this new technology

or they're going to end up like

Blockbuster. they're going to go

bankrupt because they simply won't be

able to compete with what AI can do

right now, but even more what AI can do

in the future. So being that bridge

between companies and their technology

will be a massive opportunity and you

can see right here on the curve where I

think we are right now. I still think we

are extremely early in what AI can do.

What you have to do is that you need to

make a decision yourself. Do you think

that the technology is going to stagnate

like it is now or do you think the

technology is going to get better?

Because if it's going to get better,

then companies are going to need to

implement or they're going to die. And

for the record, what I think is that the

technology will go like this. I think

we'll reach a point where we get to some

level of AGI where AI literally starts

solving its own problems. And when AI

starts to solve it its own problems, we

can't even track it on this curve

anymore for how fast things will change.

Being on the forefront of that

technology is probably the biggest

opportunity that any of us are going to

get in our lifetime. But now it's up to

you to make that bet. Do you think that

technology is going to stagnate? The

models are already as good as they're

going to get. They're not going to get

any better. Or do you think the curve is

going to keep going up and compound even

more? If you want to be 100% sure that

there's a place for you in the future,

then look at it like this. I think

there's two things that will guarantee

that. The first one is like we talked

about AI. If you're the one replacing

instead of being replaced and you always

know the new stuff that's going on in

AI, you will be very very valuable to

society. And the second thing is

content. It's the reason that I'm making

this video for you right now. I think

people on social media are gonna keep

wanting to see people even though that

AI slob is going to get so good that you

might even might not even know the

difference. I think we're going to see

platforms where people still appreciate

real people on the platform. So, if

there's two things that you can spend

your time on right now, I would say that

it's AI and building a personal brand or

at least knowing how to get attention

from real people. Let me know in the

comments if you agree with this and what

you are doing in order to fit in to the

future. If you want to know how me and

everyone else in our school group is

preparing for the future, then make sure

to join our completely free group.

There's a link in the description. I'll

see you inside. It's completely free.

Have a good one. Peace out.

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