


AI Marketing report (80/100):
Midjourney AI for creative advertising SME agencies?
This assignment was to write a 3000-word report examining an AI of choice, and investigating its significance and potential for disruption in a selected company and industry.
I explored Midjourney AI's integration in creative advertising agencies and its creative benefits and limitations, using a case study on Studio Output: a London-based creative advertising SME.
My choice to investigate a text-to-image generative AI stemmed from my deep interest in how images can be used to influence perception – rooted in my History of Art background – and their essential role in emotional persuasion within the advertising industry.
I really enjoyed the investigative nature of this task, and using AI firsthand to illustrate my arguments. I'm proud to say Midjourney is now a regularly used weapon in my creative arsenal!

Highlights:
1. Analysis of how Midjourney solves SME problems.
2. Midjourney's limitations & issues
3. Industry disruption & responses
4. Recommendations for Studio Output


MIDJOURNEY: a solution to creative advertising SMEs' problems?
Midjourney AI offers significant advantages for SME agencies, providing a powerful tool to enhance creativity and efficiency. Its capabilities allow agencies to generate high-quality, hyper-realistic and hyper-targeted images in minutes. This technology can enable smaller agencies to compete with larger firms by offering innovative, tailored visual content to clients, and streamline production processes by saving time and resources.
However, despite the opportunity to augment creative output and maintain competitive advantage in a fragmented industry, it also poses risks and challenges...
02
AI PROBLEMS: creative limitations & IP issues
Midjourney has inherent creative limitations (such as scrambled images and text generation) so has limited reliability for final products. Furthermore, it cannot relate to human sensory experiences, which is crucial for creating content that is engaging and emotionally resonant with consumers.
IP issues further complicate its adoption – Midjourney-generated images cannot be copyrighted by agencies since there is an AI component, which risks IP misappropriation.
Therefore, integrating midjourney requires careful strategic consideration to mitigate potential creative and legal drawbacks...


03
Post-AI industry disruption, analysis & responses
Midjourney has caused significant disruptions in the creative advertising industry – as indicated by the SWOT. It has exacerbated market share fragmentation, since its low barriers to entry and creative benefits enable SMEs to compete with larger corporations.
With limited regulation, agencies must navigate IP and transparency issues carefully, as clients increasingly demand clarity on its use.
Although SMEs rarely disclose Midjourney’s use, corporations have taken varying stances largely stemming from client preferences and sizes – generally: adoption, restriction, or prohibition. Each organisation’s approach largely stems from client preferences, size, and the highly uncertain environment caused by lack of regulation.
04
Solutions & Recommendations for Studio Output
SMEs like Studio output should adopt Midjourney alongside creative teams, to enhance innovation and efficiency whilst retaining a human emotional touch.
Establishing an internal policy similar to Havas’ ‘play-don’t-publish’ approach – only using it in initial brainstorming processes whilst keeping final designs in-house – would ensure transparency and ethical compliance. This is adaptable for diverse client preferences, safeguards IP-sensitive clients and aligns with Studio Output’s client-centric positioning.
They should also regularly monitor the regulatory environment and future shifts around AI and IP rights to stay competitive and informed about how they will impact the strategic use of generative AI in creative processes.

