But AI won’t solve the industry’s most important problems by itself. Agencies also expressed concerns about AI, including lack of human creativity (28%), data privacy (23%), accuracy of recommendations (17%) and brand safety (12%). The companies that benefit most from AI will likely be those that combine technology with better discovery questions, stronger product knowledge and clearer campaign thinking. “AI can help the industry move faster, but it shouldn’t replace human judgment,” Bhat says. “The real value is using technology to improve product fit, personalization, budget planning and measurement.” What Winners Will Do Differently The survey findings point toward a simple but important conclusion: Branded merchandise has a strong future, but the winning playbook is changing. For distributors, the advantage will come from moving upstream. The strongest partners will help clients define the audience, clarify the business objective, choose products with purpose, understand pricing tradeoffs, move quickly through quotes and samples and think about measurements before the campaign begins. For suppliers, the advantage will come from reducing friction and risk. That means better quality control, reliable inventory, faster production, stronger customization, clearer sustainability and compliance information and product innovation that reflects how brands actually use merchandise today. For agencies, the opportunity is to treat branded merchandise as part of campaign design rather than a final-stage add-on. That requires stronger examples, better proof, clearer use cases and easier collaboration with distributors and suppliers. The common thread is value. Brookshire is associate editor at PPAI. Must Read | Better Merch Is Better Marketing 52 • OCTOBER 2026 •
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