Can a marketing agency write off AI tools?

Usually, yes — AI tools can often be written off by a marketing agency if they are used for legitimate business purposes and the expense is ordinary and necessary for the business.

In the U.S., software and subscription costs are commonly deductible business expenses when they’re used to run the agency or serve clients. That can include tools used for copywriting, design, research, analytics, or campaign work.

A few practical rules:

• Business use matters: If the tool is used only for the agency, it’s generally easier to deduct.
• Mixed use must be split: If you use one AI account for both personal and business tasks, only deduct the business-use portion.
• Keep records: Save invoices, receipts, bank statements, and notes showing how the tool is used in the business.
• Category can vary: These costs are often recorded as software, subscriptions, SaaS, or similar operating expenses, depending on your return and accounting setup.

Because tax treatment can vary by entity type, state, and how the tool is purchased or used, it’s a good idea to have a CPA or tax professional review your situation before claiming the deduction.