What Will AI Actually Mean for the Professions?

The arrival of AI in professional services is reshaping the landscape. Some see this as a threat, while others believe it’s the greatest opportunity of our time.

So, what’s the reality?

Professional services have long relied on time and materials billing, but that model is under pressure. Clients question why they should pay premium hourly rates when technology can perform many tasks once handled by people. This shift means we’ll need to embrace value-based billing, which requires honest discussions about the tangible value clients receive. It also means adjusting our pricing to reflect shared benefits, likely leading to lower invoices in many cases.

This change is likely to be resisted, particularly by those accustomed to the traditional model. However, private equity (PE) firms entering the sector could act as a catalyst, fostering greater efficiency and collaboration. Instead of passive infighting or divisional isolationism, PE-backed models encourage streamlined, goal-focused operations. This shift could spur more competitive pricing models where clients benefit from lower fees while firms maintain profitability through increased efficiency.

In the short term, value-based billing could provide a competitive edge and foster client loyalty. However, it also raises questions: are we setting ourselves up for a race to the bottom on fees? And what does this mean for our workforce? Likely, fewer people will handle higher-value work, and the like-for-like demand for work will decrease overall. However, while turnover may drop, the bigger opportunity lies in creating new revenue streams. For example, firms can expand their offerings to include services like analytics managed services or AI-driven insights, helping clients deliver forward-looking solutions. This however involves taking a risk. Moving into ground that many senior partners don't understand, or cant see the immediate benefit over the cost of the initial investment, means this is less likely to be top of the to-do list.

To drive sustainable growth in their existing books of work, firms should innovate in their approach to service delivery and as a result outcompete their rivals by simply being better on price and quality. Instead, many will look to fall back on traditional growth strategies like market consolidation. Whilst this isn't a bad idea per se, and its certainly easier than changing an organisational culture to pivot towards innovation, it has its limits; after all there are only so many firms to acquire, and besides all firms are in the same position when it comes to AI. Unless targeted purchases are made to bring innovation and digital skills into your firm, consolidation will simply mean there will just be bigger firms that have to tackle the innovation challenge in the longer term.

Alongside all of this, it would be foolish to ignore the risk of 'black swan' disruption which looms large as well. Just as Uber transformed the taxi business, a new and unforeseen entrant could potentially disrupt the professional services landscape.

The good news is in practices around the globe, the green shoots from success stories are already there for those that choose to see them. For example, some firms have already engaged in digital transformation initiatives, implementing analytics platforms like KNIME or Alteryx and democratising analytics and automation practices to streamline data handling and reduce manual tasks. These firms have seen substantial returns, driving both efficiency and client satisfaction. Furthermore, your more junior in service people will thank you also. They have come from school and university, many have learned to code, or analyse data, and they will enjoy the challenge. You never know, fully embracing this side of innovation may even help bring a new generation to accounting and law.

While change is inevitable, it doesn’t need to be chaotic. By adopting a proactive approach, firms can avoid unnecessary upheaval. Building strategic direction is key, and initiatives such as leadership workshops and “Art of the Possible” sessions can help align firms with a forward-looking strategy. Partnering with clients on innovation labs and experimenting in structured environments allows firms to stay agile and responsive to changing client demands. Importantly, digital transformation isn’t simply about technology adoption but about reimagining business models to enable sustained, long-term growth. A clear plan, leadership alignment, and a culture that supports calculated risks are crucial.

In a PE-driven model, firms that actively plan for the future are likely to be more attractive targets for investment. So, is this the end of traditional professional services? Far from it. It’s a new chapter, one where careful planning and an eye for innovation can position firms for success in the decades to come.

Jamie is founder of Bloch.ai : The Applied Innovation Specialists, and a visiting fellow in Enterprise AI at Manchester Metropolitan University. Follow Jamie on LinkedIn: Jamie Crossman-Smith | LinkedIn