Inside The AI-Powered Modeling Agency Boom — And What Comes Next

Forbes

2 days ago

The AI boom has been defined by unprecedented innovation across nearly every sector. From improving flight punctuality through AI-powered scheduling to detecting early markers of Alzheimer's disease, AI is modifying how we live and work. And the advertising world isn't left out.
In March of this year, OpenAI's GPT-4o sent the internet into a frenzy with its ability to generate Studio Ghibli-style images. The model produces realistic, emotionally nuanced visuals from a series of prompts — a feat that has led some to predict the demise of visual arts as we know them. While such conclusions may be premature, there's growing belief among industry players that AI could transform how digital model agencies operate.
That belief isn't limited to one startup. A new class of AI-powered agencies — including FanPro, Lalaland.ai, Deep Agency and The Diigitals — is testing whether modeling can be automated without losing its creative edge. Some use AI to generate lifelike avatars. Others offer virtual photo studios, CRM — customer relationship management — integrations, or creator monetization tools. Together, they reflect a big shift in how digital modeling agencies think about labor, revenue and scale.
FanPro — founded by Tyron Humphris in 2023 to help digital model agencies scale efficiently — offers a striking case study. Fully self-funded, Humphris said in an interview that the company reached $1 million in revenue within its first 90 days and crossed eight figures by 2024, all while maintaining a lean team by automating nearly every process.
As Humphris noted, 'the companies that will lead this next decade won't just be the ones with the best marketing or biggest budgets. They'll be the ones who use AI, automation and systems thinking to scale with precision, all while staying lean and agile.'
That explains the big bet that startups like FanPro are making — but how far can it really go? And why should digital model agencies care in the first place?
To understand how automation works in the digital modeling industry — a fast-rising corner of the creator economy — it helps to understand what it's replacing. A typical digital model agency juggles five or more monetization platforms per creator — from OnlyFans and Fansly to TikTok and Instagram. But behind every viral post is a grind of scheduling, analytics, upselling, customer support and retention. The average agency may need 10 to 15 contractors to manage a roster of just a few high-performing creators.
These agencies oversee a complex cycle: content creation, onboarding, audience engagement and sales funnel optimization, usually across several monetization platforms. According to Humphris, there's often a misconception that running a digital model agency is just about posting pretty pictures. But in reality, he noted, it's more. 'It's CRM, data science and psychology all wrapped in one. If AI can streamline even half of that, it's a game-changer.'
That claim reflects a growing pain point in the creator economy, where agencies swim in an ocean of tools in an attempt to monetize attention for creators while simultaneously managing marketing, sales and customer support. For context, a 2024 Clevertouch Consulting study revealed that 54% of marketers use more than 50 tools to manage operations — many stitched together with Zapier or manual workarounds.
Tyron Humphris, founder of FanPro
FanPro
But, according to Humphris, 'no matter how strong your offer is, if you don't have systems, processes and accountability built into the business, it's going to collapse under pressure.'
And that's where AI steps in. Beyond handling routine tasks, large language models and automation stacks now allow agencies to scale operations while staying lean. With minimal human input, agencies can schedule posts, auto-respond to DMs, upsell subscriptions, track social analytics and manage retention flows. What once required a full team of marketers, virtual assistants and sales reps can now be executed by a few well-trained AI agents.
FanPro claims that over 90% of its operations — from dynamic pricing to fan interactions — are now handled by automation. Likewise, Deep Agency allows creators to generate professional-grade photo shoots without booking a studio or hiring staff and Lalaland.ai helps fashion brands generate AI avatars to reduce production costs and increase diversity in representation.
Still, not everyone is convinced that AI can capture the nuance of digital intimacy. Some experts have raised concerns that hyper automation in creator-driven industries could flatten human expression into predictable engagement patterns, risking long-term user loyalty.
A 2024 ContentGrip study of 1,000 consumers found 80% of respondents would likely switch brands that rely heavily on AI-generated emails, citing a loss of authenticity. Nearly half said such messages made them feel 'less connected' to the brand.
Humphris doesn't disagree.
'AI can do a lot, but it needs to be paired with someone who understands psychology,' he said. 'We didn't scale because we had the best tech. We scaled because we understood human behavior and built systems that respected it.'
Humphris' sentiment isn't a mere anecdote but one rooted in research. For example, a recent study by Northeastern University showed that AI influencers often reduce brand trust — especially when users aren't aware the content is AI-generated. The implication is clear: over-automating the wrong parts of human interaction can backfire.
Automation doesn't — and shouldn't — mean that human input becomes obsolete. Rather, as many industry experts have noted, it will enhance efficiency but not replace empathy. While AI can process data at speed and generate alluring visuals, it cannot replicate human creativity or emotional intelligence. Neither does AI know the psychology of human behavior like humans do, a trait Humphris credits for their almost-instant success.
Lalaland.ai and The Diigitals have earned praise for enhancing inclusivity, enabling brands to feature underrepresented body types, skin tones and styles. Meanwhile, FanPro focuses on building AI 'growth engines' for agencies — full-stack systems that combine monetization tools, CRM and content flows.
But not all reactions have been positive.
In November 2024, fashion brand Mango faced backlash for its use of AI-generated models, which critics called 'false advertising' and 'a threat to real jobs.' The New York Post covered the fallout in detail, highlighting how ethical lines are still being drawn.
As brands look to balance cost savings with authenticity, some have begun labeling AI-generated content more clearly — or embedding human oversight into workflows, rather than removing it.
Despite offering an automation stack, FanPro itself wasn't an immediate adopter of automation in its processes. But, as Humphris noted, embracing AI made all the difference for the company. 'If we had adopted AI and automation earlier, we would've hit 8 figures much faster and with far less stress,' he noted.
FanPro is a great example of how AI integration, when done the right way, could be a profitable venture for digital model agencies.
Whether or not the company's model becomes the blueprint for AI-first digital agencies, it's clear that there's a big shift in the creator economy, where automation isn't only viewed as a time-saver, but also as a foundational pillar for businesses.
As digital model agencies lean further into an AI-centric future, the bigger task is remembering what not to automate — the spark of human connection that built the industry in the first place.
'In this new era of automation,' Humphris said, 'the smartest agencies won't just ask what AI can do. They'll ask what it shouldn't.'