Why AI-Enhanced Agencies Are Outpacing AI-First Pretenders with Michael Davern | Ep #858

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

AI is changing the agency landscape faster than most owners can keep up with. Tools are popping up daily, clients are asking if rates should drop, and your team is either fired up or freaked out. Today's featured guest talks about what it takes to build an agency that thrives in a world obsessed with shiny new tech, where the edge is not more tools. It is better leadership, human connection, and an incubator mindset that keeps them ahead without drowning in the noise.

Michael Davern is the CEO of Incept, an AI-enhanced, digital-first agency that has been around for a decade. Today, his agency blends automation, machine learning, and human-centered strategy to help enterprise clients grow with clarity and smart execution.

He is an early adopter who still believes the real edge is human connection and wants to encourage agency owners to really think about who should lead.

In this episode, we'll discuss:

• AI-enhanced vs. AI-first: what actually creates agency value.

• Leading an agency through rapid AI change.

• Why human-first agencies win in the long run.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

This episode is brought to you by Wix Studio: If you're leveling up your team and your client experience, your site builder should keep up too. That's why successful agencies use Wix Studio — built to adapt the way your agency does: AI-powered site mapping, responsive design, flexible workflows, and scalable CMS tools so you spend less on plugins and more on growth. Ready to design faster and smarter? Go to wix.com/studio to get started.

Evolving from a Specific Niche to a Full Service Agency

Before agency life, Michael spent years in corporate America and even longer in the music industry as an artist development rep. That career went up in flames when the label collapsed and no one got paid. After a brief return to corporate, he approached his now business partner with an idea to sell text message marketing, and suddenly he was an entrepreneur learning the agency game the hard way. Early on he chased small business clients with $49 starter packages and cheesy platinum tiers. Nobody wanted it. The market did not understand text marketing yet and the value was unclear.

Everything changed when an enterprise vendor in the Medicare insurance space let them into their workflow. Overnight texting became a revenue driver. That win opened the door to more enterprise relationships and pushed them to expand far beyond their original niche. What started as a simple vendor relationship ballooned into a full service digital agency. With time, growth came from necessity and opportunity, not a master plan. Michael admits they were often too early to the game, but that curiosity and experimentation kept them alive long enough to get good.

AI-Enhanced vs. AI-First: What Actually Creates Agency Value

Plenty of agencies slap "AI-first" on their website. Michael prefers to say "AI-enhanced" since "AI-first" implies handing the keys to robots or machines. That is not what his agency does.

Instead they use AI to enhance execution. They were early with automation, early with machine learning through the IBM Watson test program, and early with programmatic bidding when DSPs were still new. Those experiments shaped how they work today. Now, they use all this knowledge to save money, time, and drive better results for clients.

Clients are not paying for prompts or tools. AI lets the team save ti