PR-ogress or PR-oblems? Industry grapples with AI, ethics and trust: ICCO report

MUMBAI: It appears the public relations industry is currently attempting to spin its own reality, finding itself caught between the artificial intelligence of machines and the genuine intelligence of humans. According to the exhaustive ICCO World PR Report 2025–2026, an international survey conducted across 66 countries between September 2025 and March 2026, the global PR machine is currently motoring through an identity crisis.

The extensive data from 244 multi-regional PR professionals proves that while agencies are sprinting to adopt automated tech, they are simultaneously charging clients hefty premiums for old-fashioned human wisdom.

The headline sentiment across the global board is a case of cautious optimism, though the mood is noticeably softening. On a ten-point confidence scale, global industry optimism regarding market growth sits at a steady 6.2, down from 6.6 the previous year. This cooling effect is highly localized: Western Europe dropped from 6.4 to 6.0, while Eastern Europe stagnated at 5.9, heavily impacted by geopolitical fragmentation and economic uncertainty.

Profitability is feeling the squeeze. Expected agency profitability averages just 5.3 in Western Europe and 5.5 in Eastern Europe. Concurrently, PR’s perceived share of marketing budgets dropped precipitously from 4.6 to 4.0 in the West and plummeted from 5.5 to a mere 3.2 in the East.

Globally, two in three practitioners (63 per cent) remain bullish about general growth. However, finding the funds remains a battle: 31 per cent of firms blame clients’ unwillingness to commit sufficient budgets, 29 per cent cite generalized economic conditions, and 25 per cent point to severe internal financial pressures to meet profit and margin targets.

Artificial intelligence has officially migrated from an experimental plaything to an absolute baseline expectation. An overwhelming 91 per cent of respondents name AI as the most relevant technology for the next five years, and 89 per cent of agencies have already integrated it into everyday workflows, a steep rise from 74 per cent last year. Regionally, Western Europe leads this operational automation at 92 per cent, followed by Eastern Europe at 82 per cent.

Yet, plugging in the machines has triggered a massive digital headache. Effectively integrating and adapting to AI technologies is ranked as the single largest operational challenge by 34 per cent of global firms. Why? Because 72 per cent of agencies are using these automated tools without any agreed global governance framework, forcing teams to completely improvise when navigating data obligations, client disclosures, and pricing models.

This shifts the talent landscape entirely. PR leaders are heavily prioritizing “hybrid communicators,” individuals who possess data fluency alongside traditional writing crafts. Looking at the skills needed for the next decade, mastery of AI tools ranks first at 45 per cent, followed closely by strategic consulting at 43 per cent, and the ability to critically assess and ethically deploy AI-generated content at 32 per cent. Traditional staples have taken a back seat, with crisis counsel at 31 per cent and raw creativity languishing at 19 per cent.

With automated text generation running rampant, truth has become a luxury item. A staggering 77 per cent of communications professionals admit that distinguishing accurate information from fake news and orchestrated disinformation has become fundamentally difficult.

This has turned disinformation into the industry’s top ethical bogeyman. When asked to name their greatest ethical hurdles, 40 per cent of practitioners cited misinformation and disinformation. This was closely followed by the anxiety of balancing agency income and growth with ethical client considerations (38 per cent), and a glaring lack of consequences for rogue agencies that behave unscrupulously or represent unethical clients (38 per cent).

Encouragingly, 86 per cent of global respondents firmly believe it is a PR agency’s duty to advise clients against unethical behavior, and 75 per cent have actively turned down a client or a project due to ethical boundary lines. Furthermore, 69 per cent subscribe to and intimately know an industry code of conduct. Yet, cynicism remains high within their own ranks: a minority of only 44 per cent believe that public relations is inherently more ethical than other corporate industries. On a scale of 1 to 10 for regional ethical practice, North America scores highest at 7.7, the UK and Latin America tie at 7.0, while Western Europe (5.8) and Asia-Pacific (5.5) lag behind.

Where is the money actually moving? The technology sector remains the undisputed cash cow, with 46 per cent of firms seeing it as their fastest-growing client source last year, and 41 per cent expecting it to dominate next year as tech firms race for AI visibility. Healthcare follows closely behind (32 per cent past growth, 36 per cent future growth), alongside financial services (27 per cent past growth, 31 per cent future growth).

In terms of actual service lines, corporate reputation (41 per cent) and high-level strategic consulting (37 per cent growth, 39 per cent investment) are the primary drivers. Public affairs and government relations have also witnessed a notable bump, rising from 16 per cent last year to 20 per cent in 2026. Meanwhile, 17 per cent cite insights, data evaluation, and analytics as a core expansion sector.

Yet, behind these shiny corporate numbers lies a severely strained workforce. A worrying 34 per cent of PR practitioners globally have experienced documented mental health problems over the past 12 months. While 70 per cent agree that mental health support within their organizations has generally improved, only 50 per cent of firms actually have formal mental health and wellbeing frameworks in place.

Compounding this is a structural talent deficit. Retaining key talent is highlighted as the single biggest HR challenge by 47 per cent of firms, followed by the uphill task of developing junior and mid-level staff (35 per cent) and hiring seasoned senior executives (29 per cent). Agencies are losing mid-level staff rapidly to in-house corporate communication departments, while high-growth arenas like the Middle East and Africa (13.5 per cent) and Asia-Pacific (11.2 per cent) are seeing local demand outstrip the actual supply of trained professionals.

Ultimately, the report signals that while AI can easily draft a generic press release, it cannot replicate the nuanced human judgment, cultural intelligence, and relationship capital required to navigate a highly polarized world. The machines might have the data, but the humans still hold the relationships.