Asep Darmawan
For years, the advertising industry has been defined by the “agency of record” model—a symbiotic, yet often cumbersome, relationship between brands and external creative powerhouses. But at Dollar Shave Club (DSC), the script is being rewritten. Under the guidance of Chief Brand and Innovation Officer Laura Higgins, the company has reached a point where 90% of its advertising is produced internally. Now, Higgins is looking to Artificial Intelligence (AI) to bridge the final 10% gap, effectively turning the brand into a self-sustaining creative engine.
In an era where speed is the primary currency of consumer attention, Dollar Shave Club’s pivot represents a fundamental shift in how challenger brands operate. By blending human creative intuition with the raw processing power of generative AI, DSC is proving that smaller, nimbler teams can outpace traditional industry giants, rendering the old, slow-moving agency process increasingly obsolete.
The Anatomy of the 90% Shift
Dollar Shave Club has long prided itself on an "irreverent" voice—a tone that cuts through the sterile, corporate malaise of the razor industry. Maintaining that voice while outsourcing creative work is notoriously difficult. For Higgins, a veteran of the process-heavy corridors of Procter & Gamble, the move toward an in-house model was not born out of a desire to eliminate agencies, but rather a necessity for survival in a high-velocity market.
"We are 90% in-house," Higgins stated, noting that when it comes to the remaining 10%, the goal is not to eliminate external help entirely, but to reserve it for moments where the brand genuinely lacks the "external chops" or internal capacity to execute a specific vision.
The strategy is simple: human production is prohibitively expensive for a challenger brand. By utilizing AI to handle the heavy lifting of production, DSC preserves its budget for "human shots"—the critical moments in a campaign that require genuine human emotion, nuance, and connection.
Chronology of an AI-Powered Campaign: The 4th of July Sprint
The true efficacy of this model was demonstrated during the brand’s 2024 4th of July campaign. The objective was to draw a parallel between the American colonists’ revolt 250 years ago and the company’s own 2012 disruption of the shaving industry.
- The Brief (Day 1): Higgins authored the creative brief herself, outlining the thematic connection between historical rebellion and modern-day corporate disruption.
- Concepting and Drafting (Days 2–3): A small internal team—comprised of copywriters, comedians, and conceptors—utilized tools like Claude and Higgsfield to generate rapid-fire iterations.
- Production (Days 4–7): The team transformed abstract concepts into high-fidelity assets, including surrealist imagery like an eagle chasing a hot dog and a satirical, cartoonish riff on Washington crossing the Delaware.
- Launch (One Month Mark): The entire campaign, across multiple asset sizes and platforms, went live.
"There’s no way in the old world we would be able to go from idea to launch in a month," Higgins remarked. In the traditional agency model, such a turnaround would typically be slowed by multiple layers of account management, external reviews, and administrative friction. At DSC, the process is streamlined: the brief, a walk-through with the team, and a final "gut check" in Higgins’ office.
The Ethics of Synthesis: When to Use AI and When to Refrain
A common criticism of AI in advertising is the potential for "uncanny valley" results or a lack of authenticity. Higgins is acutely aware of this risk, maintaining a nuanced stance that rejects a one-size-fits-all approach.
The Case for "Real"
For an upcoming military-focused campaign, Shavers That Never Waver, the brand is strictly avoiding AI. The campaign features real footage of service members. As Higgins explains, "That’s something I would never have AI do." The logic is sound: when a campaign’s meaning is predicated on sacrifice and service, using synthetic imagery would be perceived as deceptive and cheap.
The Case for "Synthetic"
Conversely, for a mid-July launch of a new product called "Ball Spray," the campaign is 100% AI-generated. The subject matter—men driving trucks with testicle-shaped ornaments—is a niche cultural phenomenon that no human actor would willingly film. Here, the artificial nature of the campaign is a feature, not a bug. It allows the brand to lean into the absurd without the logistical hurdles of human production.
This demonstrates the core of Higgins’ philosophy: AI is an execution device, not a strategy.
Supporting Data and Financial Realities
The transition to an AI-heavy workflow has not been without its learning curve. In the early days of implementing these tools, Higgins admits to overspending. Without a clear strategy, AI tools can become a "black box" of costs.
"I’m sure the first month that I was here, I overused it," she admitted. "I have no idea what that bill looks like."
To manage this, the company has implemented a tiered approach to its tech stack:
- Low-Cost Models: Utilized for simple tasks, ideation, and rapid drafting.
- Premium Models: Reserved for complex, high-fidelity production where the quality of the output justifies the compute cost.
This granular control over spending is a hallmark of a lean, challenger-brand mentality. It treats AI as a variable cost that must be optimized, much like media buying or supply chain logistics.
Implications for the Agency Model
The success of Dollar Shave Club’s model sends a sobering message to the broader advertising industry. If a mid-sized challenger brand can internalize 90% of its production, what does that mean for the traditional agency?
The "Execution vs. Idea" Divide
Industry analysts suggest that the role of the agency is shifting. As AI takes over the "execution" phase—the time-consuming, labor-intensive work of rendering, editing, and versioning—the value proposition of an agency must pivot toward "the idea." Agencies that survive will be those that provide high-level strategic thinking that AI cannot replicate.
The Threat of "AI Slop"
Matt Owens, Chief Design and Innovation Officer at the brand studio Athletics, warns of the danger of "AI slop." As AI lowers the barrier to entry, the market will be flooded with generic, low-quality content. "The tension between speed and AI slop is real," Owens notes. "Only the teams that have strong command over AI tools to create work that is on-brand, high fidelity, and seamlessly integrated into the real world will win."
Transparency as a Competitive Advantage
Higgins is a staunch proponent of disclosure. By leaning into the obvious artificiality of her ads, she avoids the backlash associated with misleading consumers. This is not just a moral choice; it is a regulatory one. With new legislation in regions like New York regarding AI disclosure, brands that are transparent about their use of synthetic media are better positioned to avoid legal and reputational risk.
Conclusion: The Human-in-the-Loop Future
The story of Dollar Shave Club is not a story of the death of human creativity; it is a story of its liberation. By delegating the repetitive, time-consuming aspects of production to AI, Higgins has created an environment where her creative team is free to focus on concepting, strategy, and the "human shots" that define the brand’s voice.
"It’s not the strategy, it’s an execution device," says Higgins. The "AI-in-the-loop, human-at-the-helm" mantra has become the industry’s standard answer, but few have applied it with the ruthlessness and efficiency of Dollar Shave Club.
For other brands, the implication is clear: the era of the slow-moving, agency-reliant campaign is ending. In its place is a new paradigm where agility is the greatest asset, and where the line between the human mind and the machine’s output is becoming increasingly blurred. As Dollar Shave Club continues to iterate, the rest of the industry would do well to watch closely. The 10% gap is closing, and the future of advertising may be written by the brands that learn to hold the pen—and the prompt—the tightest.
Jia Lissa
Evan Lee Salim
