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The communications industry is currently grappling with a period of unprecedented volatility as the intersection of technological advancement, political friction, and economic austerity reshapes the landscape of professional diversity and inclusion. A new report from The BrandLab, a non-profit organization dedicated to diversifying the marketing and advertising sectors, highlights a concerning trend: a dramatic decline in industry engagement regarding equity and belonging. The 2025 State of the Profession survey saw a sharp drop in participation, with responses plummeting from over 1,000 in 2023 to just 286 in the most recent cycle. This nearly 75% decrease in engagement serves as a stark indicator of "DEI fatigue" and a shifting set of priorities within agencies and corporate communications departments.
As marketing, advertising, and public relations (PR) teams navigate a minefield of challenges—ranging from the rapid acceleration of Artificial Intelligence (AI) to a deeply polarized political climate—the prioritization of inclusive workplace cultures appears to be faltering. While organizational leaders often express a theoretical commitment to diversity, equity, and inclusion (DEI), the practical application of these values is increasingly being sidelined by shrinking budgets, personnel shortages, and the complexities of managing a disconnected hybrid workforce.
The Disconnect Between Executive Perception and Employee Experience
A central theme of the 2025 State of the Profession report is the widening chasm between how leadership views organizational culture and how employees actually experience it. This internal friction is mirrored in broader national data. According to research from Gallup, 69% of U.S. adults believe it is important for businesses to promote DEI. However, only 35% of employees believe their organizations are doing an "excellent or good job" at actually doing so.
In the communications sector, this disconnect is particularly pronounced. Leadership often attributes the stagnation of inclusion efforts to external pressures, such as the current political climate and the potential for public backlash against "woke" corporate policies. However, the data suggests that the issue is more internal than external. Employees surveyed by The BrandLab reported a persistent lack of belonging, noting that their full identities and personal experiences are rarely recognized or valued by their employers. Furthermore, many expressed frustration over a lack of influence in decision-making processes, suggesting that even when diverse talent is hired, they are often excluded from the strategic core of the business.
The findings underscore a difficult reality: the intention to be inclusive is no longer sufficient. Without tangible mechanisms to ensure that diverse voices are heard and integrated into the business model, inclusion remains a surface-level aspiration rather than an operational reality.
The Economic Barrier: The Billable Hour vs. Cultural Growth
One of the most significant hurdles to maintaining inclusive practices in PR and advertising is the economic structure of the industry itself. In many agencies, internal culture-building, mentorship, and participation in Employee Resource Groups (ERGs) are categorized as "non-billable" hours. In an era of tightening margins and shrinking client budgets, work that does not directly fuel the bottom line is often the first to be deprioritized.
When organizations face personnel capacity issues, the "extra" work of fostering inclusion is frequently abandoned to focus on immediate client deliverables. This creates a self-defeating cycle. By omitting the work required to build a supportive culture, organizations often see higher rates of attrition and turnover. The cost of recruiting and training new employees to replace those who left due to a lack of belonging far exceeds the investment required to maintain inclusive programming.
Furthermore, the shift toward remote and hybrid work has fractured the informal community-building that once occurred naturally. The "watercooler moments" that helped bridge cultural gaps and build trust have vanished, leaving many employees—particularly newer hires and contractors—feeling isolated. Without intentional efforts to reconnect these fractured teams, the sense of collective mission that drives high-performing agencies is at risk of total erosion.
The Role of AI in Reshaping Career Pathways and Bias
The rise of generative AI represents both a tool for efficiency and a potential barrier to industry diversity. In the first half of 2025 alone, AI-driven automation was cited as a primary factor in more than 10,000 job cuts across the United States. For the communications industry, the impact is felt most acutely at the entry level.
Historically, the industry has built its diversity pipeline through junior roles—production assistants, junior copywriters, and research coordinators. These positions served as the traditional "on-ramps" for talent from underrepresented backgrounds to enter the field and gain mobility. As AI takes over these foundational tasks, these entry-level opportunities are narrowing, making it harder for a diverse new generation of professionals to get a foot in the door.
Beyond the threat to job security, AI poses a significant risk regarding algorithmic bias. Because AI systems are trained on historical data, they often replicate the societal biases present in that data. If the teams training and testing these systems lack diversity, the output—be it a marketing campaign, a press release, or a strategic recommendation—is likely to reflect and amplify those biases. This makes the presence of diverse teams more critical than ever, not just for social equity, but for the accuracy and ethical integrity of the work itself.
Chronology of the Industry Shift (2020–2025)
To understand the current state of the profession, it is necessary to look at the timeline of the last five years:
- 2020–2021: The Great Awakening. Following global social justice movements, corporations made massive public commitments to DEI, increasing budgets for diversity officers and internal programming. Participation in industry surveys like The BrandLab’s reached record highs.
- 2022: The Economic Tightening. Rising inflation and interest rates led to the first wave of budget cuts. While DEI remained a priority, the "billable hour" pressure began to mount.
- 2023: The Hybrid Struggle. Organizations struggled to maintain culture in a permanent hybrid state. The BrandLab’s 2023 survey showed the first signs of employee burnout and a perceived softening of executive commitment.
- 2024: The Political and AI Surge. Political polarization in the U.S. led some companies to quietly scale back DEI branding to avoid controversy. Simultaneously, the rapid adoption of AI began to eliminate entry-level roles.
- 2025: The Participation Crisis. The 2025 State of the Profession report reveals a collapse in survey participation and a widespread sense that inclusion has become "optional" rather than "operational."
Implications for the Future of Brand Reputation
The long-term implications of deprioritizing inclusion are significant. As the global consumer base becomes increasingly diverse, brands that lack internal diversity will struggle to create authentic, resonant messaging. The risk of "tone-deaf" campaigns increases when there is no one in the room to provide a different perspective or challenge biased AI outputs.
Moreover, the "war for talent" has not ended; it has simply evolved. High-performing professionals from all backgrounds are increasingly seeking workplaces where they can bring their full identities to the table. Organizations that fail to adapt to this expectation will find themselves unable to attract or retain the top-tier creative talent necessary to compete in a tech-driven market.
Strategic Recommendations for Leadership
The 2025 State of the Profession report concludes that the next phase of progress is not about adding more initiatives, but about embedding inclusive practices directly into everyday workflows. Leaders are encouraged to move away from treating DEI as a separate "task" and instead ask more intentional questions about their operations:
- Is our mentorship program structured to survive budget cuts?
- Are we using diverse teams to audit our AI outputs for bias?
- How are we measuring the ROI of employee belonging in terms of retention costs?
- Are we ensuring that hybrid workers have the same access to influence as those in the office?
The shift from "optional" to "operational" inclusion is the only viable path forward for an industry that relies on human creativity and cultural relevance. While the data from 2025 shows a stalling of momentum, it also provides a roadmap for recovery. For those organizations willing to stay curious and act on the feedback of their employees, the opportunity to build a more resilient, innovative, and inclusive future remains within reach. As the communications world continues to grow "weirder" and more complex, the human element—rooted in diverse experience and genuine belonging—remains its most valuable asset.
