Nine in 10 senior Australian marketers are anticipating an increase in AI's role within communications this year. Yet even with that projected increase, three in four expect budgets to grow - for now. Because half expect budgets to shrink as AI use matures.

A recent report by Berkeley Communications and conducted by Arlington Research, 'The Human Touch in the Age of AI,' surveyed 950 senior marketing and communications decision-makers across Australia, Singapore, Europe, and the Americas. It found 90% of Australian marketing leaders anticipate an increase in AI's role within their communications this year. Furthermore, 47% of these leaders are prioritising the integration of emotional tone and strategic AI use in their campaigns.

Australia is reportedly leading globally in emotionally intelligent marketing strategy. In comparison, 91% of Singaporean marketers expect budget growth, with 89% predicting an increased use of AI.

Rachel Carter, Head of Research at Arlington Research, commented, "This isn’t about hype – it’s about smarter marketing." She added, "Australia’s leaders are investing more, not just in tech, but in the human capability to use it meaningfully. They’re also leaning heavily on research to ensure messages land with the right emotional tone and business impact.

"Our latest research reveals that while 85% of decision makers expect AI’s role to grow this year, the smartest teams are blending its analytical edge with the empathy, intuition and nuance of real storytelling."

Even with this expected lift in speed and efficiency from AI, the report found 74% of senior Australian marketers expect their budgets to grow in 2025. In direct contradiction however, 45% believe budgets will shrink as AI use increases.

The report also found corporate storytelling and short-form video have been identified as untapped growth areas by Australian marketers, while the majority (81%) see earned media delivering the biggest impact for their brands. Overall, the top campaign priorities for senior decision makers in 2025 are understanding and integrating AI (49%), research (27%) and content marketing (26%).

"Our agency legacy is built on a storytelling foundation and now we’re helping brands harness the power of AI tools without losing the human creativity, empathy and nuance that drives true connection. The smartest marketers in Australia are embracing this balance – and investing in both," said Povel Torudd, Managing Director of Berkeley Communications APAC & Australia.

Berkeley Communications, a global PR and communications firm established in 1988, operates hub agencies in the UK, US, Germany, and Australia. Arlington Research, the global research agency responsible for conducting the study, provides insights for global brands and agencies.