‘Reinvent businesses before it is too late,’ Rishad Tobaccowala warns marketers

Goa: Artificial intelligence is redefining knowledge and experience like never before. Such times call for marketers and business leaders to reimagine what they do. Speaking at the Goafest 2025, Rishad Tobaccowala, senior advisor to Publicis Groupe, cautioned that AI will soon make knowledge and experience nearly free, pushing human qualities like creativity, intuition, and storytelling to the forefront. 

Emphasising empathy in managing change, he reminded leaders that while machines may process data, it is people who create meaning. The future, he argued, demands a complete shift in mindset—not just new tools. 

“AI is bigger than you think”

AI, according to Tobaccowala, is still deeply underestimated. Drawing parallels to the early days of desktop computing and the internet, he pointed out that we’re witnessing a similar seismic shift—except this time, it’s knowledge itself, not just information, that is becoming free. “The cost of computing has gone down ten million times in the last 40 years. Distribution of information is now close to zero,” he said. “And what’s next? The cost of knowledge and experience is headed to zero too.”

For industries built on specialised knowledge and long-earned experience—especially marketing, media, and consulting—this is a wake-up call. Tobaccowala cautioned against superficial AI strategies. “The worst thing any company can do is have an AI strategy. That’s like saying you have an electricity strategy. AI is not a vertical solution; it’s a horizontal reality. Your entire business strategy needs rewriting in an AI age.”

From AI to HI: The Human Differentiator

Yet, in a world where machines increasingly outmatch humans in intelligence, Tobaccowala argued that the real differentiator will be what he called HI—Human Ingenuity, Inspiration, Interaction, Intuition, and Inventiveness. “AI is now smarter than most of us. If you have a ChatGPT or Gemini in your pocket, you're already surrounded by something smarter than you,” he quipped, adding, “But it cannot replace the emotional, connective, and creative elements that make brands and companies matter.”

He stressed that creativity, curiosity, and communication—long considered soft skills—are now central to the future of work. Marketing, for instance, becomes more essential than ever, not because of how much data it leverages, but because of its ability to combine storytelling with trust and emotional resonance. “If marketers become completely data-driven, there will be no marketing left—because machines are already better at data,” he warned.

Burn the Old Containers

Tobaccowala urged leaders to “set their minds on fire”—not with burnout, but with a willingness to unlearn old frameworks. “The future does not fit in the containers of the past. That includes our business models, our assumptions, even our own minds,” he said. For instance, he challenged the age-old belief that scale equals success. In an AI-powered world, agility may trump size. “You will see billion-dollar companies with fewer than 100 employees. Scale can become a liability—it breeds bureaucracy.”

To stay ahead, Tobaccowala introduced the idea of the “immigrant mindset”—thinking like an outsider, with humility and hunger. “Companies are consistently blindsided by outsiders—whether it’s Tesla disrupting auto giants or Dollar Shave Club taking on P&G. Leaders must think like immigrants and underdogs to see around corners,” he said.

Reinvent, Don’t Just Optimise

During the fireside chat, Tobaccowala turned his focus to agencies and marketers. His advice to agencies was clear: embrace the opportunity to tell stories in entirely new ways, but also confront the threat AI poses to the traditional FTE (full-time equivalent) model. “AI will cut the need for FTEs by 20% before the end of next year. Agencies must shift towards new business and compensation models to remain viable.”

For marketers, he urged a more radical rethink. “Many brands are using AI to make their current models more efficient. But if everyone has the same tools, where’s the edge? The real task is to reinvent your business entirely for an AI age,” he argued. Drawing on his experience with The New York Times, he described how the media brand shifted from a print-centric mindset to becoming an online-first, multi-product platform with substantial revenues from games and recipes.

Managing Change Without Burnout

Change, Tobaccowala acknowledged, is never easy—especially for those entrenched in long-term careers or leadership roles. “Change sucks,” he said candidly. “I’ve worked for the same company for 37 years and lived in the same city for 45. I’m not a fan of change. But irrelevance is worse.”

He offered a more grounded strategy for driving organisational change: make it personally relevant for employees, align incentives, and invest in training. “Telling people change is good is a lie. Make it clear how it benefits their careers and give them the tools to succeed,” he advised.

The Two-Speed Business Model

One of Tobaccowala’s most compelling suggestions was the concept of running a dual business model—one for today, and one for tomorrow. “Allocate 5–10% of your budget and 20–25% of your best talent to projects that could put your current business out of business. Let them go rogue—give them the freedom to imagine a different future within legal and technological bounds,” he said.

Tobaccowala closed with a powerful reminder of India’s growing influence and his personal commitment to recognising it. “India is no longer behind. When my book launched, I ensured it was released in India the same day as the US,” he noted.

He also highlighted a larger philosophical shift in how we think about work. “We’re moving from the decline of jobs to the rise of work. In an AI age, we’ll increasingly be doing meaningful work without needing formal jobs,” he said. “Work gives us identity, purpose, community, and growth—it’s deeply human.”

At a time when AI threatens to redefine industries, Tobaccowala’s message was equal parts warning and inspiration: embrace change, invest in human strengths, and never forget that while machines may process data, it’s people who create meaning.