Fewer PR firms expect profits as AI reshapes the industry
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Fewer PR firms expect profits in 2025, according to an industry report published by Davis+Gilbert.
Why it matters: The PR industry is hitting a financial wall at the same moment it's being redefined by AI — testing which firms can adapt.
By the numbers: Only 44% of PR firms expect profit gains, and just half see revenue rising — both lows not seen since 2021, per the report.
- Midsize firms — those with 30 to 100 employees — report feeling the most pain.
- 42% expect revenue and profit declines, compared with 31% of small firms and 19% of large ones.
- Respondents cite fixed budgets, shifting client priorities and increased competition as key factors for the grim financial outlook.
Yes, but: Even with budget constraints, firms are investing heavily in AI.
- 62% of firm leaders say they are spending on AI-powered technology.
Zoom in: The PR industry as a whole has embraced AI tools, with only 1% of firms reporting they are not using them.
- However, the use cases are still very rudimentary. Most PR pros report using AI for written content (79%), note-taking and meeting summaries (75%), ideation (58%) and social listening (53%).
- Roughly half of PR firms say they are using AI enterprise software like ChatGPT, Gemini or Copilot, while 3 in 10 are building their own proprietary tools.
What to watch: Even given the large adoption rate, 28% of firm leaders say they currently do not have or plan to have any AI policies in place.
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