AI Drives 64% ROI in Professional Services Firms

AI is rapidly transforming the landscape for professionals in various sectors, particularly lawyers, accountants, and auditors. The integration of AI into these fields is not only enhancing efficiency but also raising critical questions about responsibility, governance, and the future of these professions. A recent conference at Oxford University’s Said School of Business, sponsored by a global information services company, delved into these issues, highlighting both the opportunities and challenges presented by AI.

The conference, which coincided with the publication of a report on AI trends in professional services, revealed that professional services firms are seeing a higher return on their AI investments compared to other sectors. Over half of the respondents in a global survey reported that their firms had found at least one AI use case that was earning a return. This success was particularly evident in firms where AI usage was part of a well-defined strategy and where governance structures were in place. Interestingly, even in firms with less structured AI adoption, 64% of respondents reported ROI from at least one use case, underscoring the potential of AI to improve individual workflows.

However, the implementation of AI is not without its challenges. Concerns about inaccuracy and data security were cited as the biggest factors holding back AI use cases. These issues highlight the need for robust governance and ethical considerations in AI deployment. The conference also emphasized the importance of aligning goals within an organization regarding AI use, whether for human augmentation, automation, operational efficiency, or revenue growth. The principles to practice gap, where high-minded AI principles are not effectively operationalized, was another key area of concern. This gap often arises from a lack of visibility into the data used to train AI models and detailed information about their performance, making it difficult to apply principles such as transparency and mitigating bias.

In the field of auditing, AI tools are being increasingly used to screen transactions, allowing auditors to focus on the riskiest ones. This shift from sampling to comprehensive screening is made possible by AI's ability to analyze vast amounts of data. However, there is a consensus that AI should not replace human judgment in critical areas such as deciding on materiality thresholds or making calls about accounting treatments. The role of AI as a tutor or digital mentor for junior auditors was also discussed, highlighting the potential for AI to enhance professional judgment rather than replace it.

The legal profession is also feeling the impact of AI, with corporate legal departments embracing AI faster than law firms. This disparity is putting pressure on law firms to be more transparent about their AI usage and to reduce legal bills, as many legal tasks can now be completed in fewer billable hours. The conference also touched on the changing career paths within professional service firms, with AI expertise becoming increasingly important. However, attracting and retaining AI talent is a challenge, particularly for governments, which may lack the resources to compete with private firms. The need for independent expertise to evaluate AI-manipulated evidence in legal proceedings was also highlighted, as judges and juries increasingly face such evidence without the necessary tools to assess its authenticity.

Overall, the conference provided valuable insights into how AI is reshaping professional services and the lessons that can be drawn from these changes. As AI continues to evolve, it is clear that professionals in these fields will need to adapt, embracing new technologies while also addressing the ethical and governance challenges they present. The future of these professions will likely be defined by their ability to integrate AI in a responsible and effective manner, ensuring that the benefits of this technology are realized while mitigating its risks.