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The marketing, advertising, and public relations industries are currently navigating one of the most volatile periods in modern history, characterized by a complex intersection of technological disruption, economic tightening, and a shifting social landscape. As communication professionals attempt to find their footing in this "weirder than ever" world, new data suggests that the momentum for diversity, equity, and inclusion (DEI) is not just slowing, but in some sectors, facing a significant retreat. The BrandLab, a non-profit organization dedicated to fostering inclusivity in the creative industries, recently released its 2025 State of the Profession report, revealing a stark disconnect between executive intent and the lived experience of employees on the ground.
Perhaps the most alarming finding in the report was the dramatic decline in engagement from the industry itself. Participation in The BrandLab’s bi-annual State of the Profession survey plummeted from over 1,000 respondents in 2023 to a mere 286 in 2025. This nearly 75% drop in participation serves as a diagnostic indicator of an industry that is potentially fatigued, distracted, or deprioritizing the very conversations that were at the forefront of corporate strategy only a few years ago.
A Chronology of Shifting Priorities
To understand the current state of the communications profession, one must look at the timeline of DEI integration over the last half-decade. Following the social justice movements of 2020, the marketing and PR sectors saw an unprecedented surge in DEI commitments. Organizations appointed Chief Diversity Officers, established ambitious hiring goals, and increased funding for Employee Resource Groups (ERGs).
However, by 2023, the landscape began to shift. High-interest rates and a cooling venture capital market led to widespread layoffs across the tech and creative sectors. As "efficiency" became the corporate buzzword of 2024, DEI departments were often among the first to see budget cuts. This trend has culminated in the 2025 findings, where political polarization and the rapid ascent of Artificial Intelligence (AI) have effectively crowded out culture-building initiatives from the executive agenda.
The current environment is one of "survival mode," where shrinking budgets and a disconnected hybrid workforce have made the long-term work of cultural transformation feel like a secondary luxury rather than a business necessity.
The Disconnect Between Leadership and Employee Reality
The 2025 report highlights a significant "perception gap" that threatens the stability of modern workplaces. According to data from Gallup, approximately 69% of U.S. adults believe it is important for businesses to promote DEI. Yet, the same data reveals that only 35% of organizations are viewed as doing an "excellent or good" job at actually doing so.
In the communications field, this gap is particularly pronounced. Leaders often cite external pressures—such as political pushback and the threat of litigation—as the primary reasons for stalling DEI efforts. Conversely, employees report a different set of grievances. Many describe a persistent lack of belonging and a feeling that their influence in decision-making processes is negligible. The report suggests that while leaders may feel they are protecting the company by "quieting" their DEI rhetoric, employees interpret this silence as a lack of value for their full identities and professional contributions.
This disconnect suggests that "intent" is no longer a sufficient metric for success. For an organization to be truly inclusive, these practices must move beyond the conceptual phase and become embedded in the operational DNA of the firm.
The Economic Barrier: The "Non-Billable" Trap
One of the most significant structural hurdles to progress in PR and advertising agencies is the traditional business model centered on billable hours. In an era of tightening margins, work-culture progress is often stymied by how time is categorized.
Internal culture-building, mentorship, and ERG participation are frequently classified as "non-billable" activities. On a timesheet, these hours do not directly generate revenue, making them easy targets for elimination during budget re-evaluations. This creates a self-defeating cycle: by cutting the "non-billable" work that fosters connection and belonging, firms inadvertently drive up attrition rates. The cost of recruiting and training new talent to replace departing employees—who often leave because they feel unseen or undervalued—far exceeds the cost of maintaining robust inclusion programs.
Furthermore, the shift to remote and hybrid work has fractured the informal networks that once supported diverse talent. The "watercooler moments" that allowed for organic mentorship and the building of trust have largely vanished. Without intentional efforts to bridge these gaps, newer employees and contractors from marginalized backgrounds find themselves isolated, lacking the social capital necessary for career advancement.
The AI Factor: Reshaping Career Pipelines and Reinforcing Bias
Artificial Intelligence is the "elephant in the room" for the communications industry. While AI offers immense potential for automating production and sparking creative conception, it poses a direct threat to the traditional "on-ramps" for diverse talent.
Historically, the entry point for many professionals from underrepresented communities was through junior-level roles—production assistants, junior copywriters, and media coordinators. These roles provided the foundational experience necessary for upward mobility. However, AI-driven automation is rapidly absorbing these tasks. In the first half of 2025 alone, AI was cited as a contributing factor in more than 10,000 job cuts across the U.S. marketing and tech sectors. As these entry-level positions disappear, the industry risks closing the door on the next generation of diverse leaders.
Beyond the threat of job displacement, there is the persistent issue of algorithmic bias. AI systems are trained on historical data that often reflects societal prejudices. Without diverse teams to audit, test, and refine these systems, the communications industry risks automating and scaling bias in its campaigns and strategies. The BrandLab report emphasizes that diverse teams are not just a social imperative but a technical necessity to ensure that AI-generated content is accurate, ethical, and representative of a global audience.
Industry Implications and the Path Toward Operational Inclusion
The findings of the 2025 State of the Profession report suggest that the "initiative-based" era of DEI is coming to an end, replaced by a need for "operational inclusion." This means that inclusion can no longer be a standalone project or an extra task managed by a volunteer committee; it must be a fundamental part of how work is executed.
Industry experts, including Jasmine Russell of Monicat Data and Laura Fegley of Snack Shack, suggest that the next phase of progress requires leadership to stay curious and ask uncomfortable questions about their internal systems. These questions include:
- Workflow Integration: How are inclusive perspectives being integrated into the creative brief process rather than being added as a final check?
- Resource Allocation: How can "culture work" be incentivized or recognized in a way that balances the pressure of billable hours?
- AI Ethics: Who is responsible for monitoring the output of automated tools for bias, and does that team reflect the diversity of the target market?
- Retention Strategy: What specific measures are in place to ensure that hybrid workers from diverse backgrounds are receiving the same level of mentorship as those in the office?
Analysis of Broader Impact
The stakes for the communications industry are high. As the primary storytellers of the corporate world, PR and advertising agencies have a profound influence on public perception and social norms. If these industries retreat from their inclusion goals, the impact will be felt far beyond their internal hallways.
A lack of diversity in communications leads to "tone-deaf" campaigns that can cause significant brand damage in an increasingly sensitive marketplace. Moreover, as the U.S. population continues to become more diverse, agencies that fail to reflect this reality will find themselves increasingly out of touch with the consumers they are paid to reach.
The 2025 data serves as a critical crossroads. The drop in survey participation and the rise of AI-driven displacement are warning signs of a potential regression. However, the report also offers a roadmap for resilience. By moving from performative statements to operational changes, organizations can create a culture that survives political shifts and technological disruptions.
In conclusion, the state of the communications profession in 2025 is one of precarious transition. The "weirdness" of the current era—marked by AI, polarization, and economic anxiety—requires a more sophisticated approach to inclusion than ever before. When inclusion becomes operational rather than optional, it ceases to be a budget line item and becomes a core driver of innovation, retention, and business success. The challenge for today’s leaders is to ensure that in the rush to embrace the future of technology, they do not abandon the human connections that make the industry’s work meaningful.
