Alex Cohen, the 41-year-old founder of Xander Marketing, has seen his 17-year-old business fundamentally reshaped by the advent of generative AI. Based in Kent, UK, his agency, which specialises in serving B2B SaaS companies, has experienced a significant drop in client demand for its core content and social media services since ChatGPT's launch in late 2022.
Cohen, who immediately recognised AI's disruptive potential, began integrating tools like ChatGPT and Claude into his operations in early 2023. While this increased efficiency, allowing tasks that once took a day to be completed in an hour, it also led clients to push for lower prices or reduce their service scope. "The value isn't always dependent on the time a project takes," Cohen explained, noting the need to adjust pricing despite years of accumulated expertise.
Staff Reductions and Service Evolution
The financial impact has been direct and severe on staffing. In 2023, Cohen employed two part-time and one full-time employee, alongside a network of freelancers. By 2024, he had to make both part-time and full-time roles redundant, with the latter now working on a freelance basis. His freelance copywriting team has shrunk from three to one.
"The reason for these changes has been a mix of not needing them because we're using AI and a big drop-off in clientele, which AI is also influencing," Cohen stated. He is now the agency's only full-time employee, working with 8-10 freelancers.
Strategic Pivot to AI Integration Consultancy
Faced with a shrinking traditional client base, Cohen is pivoting his business model. He is now developing a consultancy service to help other marketing teams integrate AI into their workflows. This new venture aims to leverage the deep, practical knowledge his team has gained over three years of intensive AI use.
"We would help integrate everything with AI, set up the right projects in their workflow, and help them build the right skill set," he said. The service would also focus on managing the necessary mindset shift within teams and keeping pace with rapid tool developments from providers like Claude.
A Double-Edged Sword with Future Potential
Despite the challenges, Cohen remains optimistic about AI's role. It has enabled his agency to take on previously unviable projects, such as building a website for a client with a very small budget by using AI to "vibe code" the site. This allows him to serve the client profitably at their price point.
"The anxiety I've felt from AI disruption hasn't outweighed the excitement," Cohen concluded, adopting an entrepreneurial stance. His focus is now on solving the new problems AI creates and capitalising on the expertise he has built to navigate the evolving marketing landscape.