Thought Leadership

In talking with firms all around the world on a daily basis, I can say definitively that AI is already transforming the way we work. From automating reconciliations, building dashboards, speeding up compliance and improving the client experience - AI is part of the plumbing of modern practice.

Firms are now moving from testing into the productivity stage. That’s where the real gains are.

Planning for success

Firms gaining the biggest competitive advantage through AI adoption are those avoiding the pitfalls of poorly executed programmes. The panel discussed a recent study by the Massachusetts Institute of Technology (MIT) Media Lab that claims 95% of AI pilots fail. The reasons behind it are worth understanding.

One of the biggest reasons AI pilots stumble is that they’re treated as short-lived experiments. A proof-of-concept might show promise, but without continuity, the learning disappears. AI systems themselves often don’t retain context or ’memory’ unless they’re deliberately designed to, which means every new pilot starts from scratch.

Firms also try to bolt AI onto inefficient processes, automating chaos instead of redesigning workflows. In a reconciliation process where client data is inconsistent and poorly categorized, deploying AI doesn’t create accuracy, it just accelerates the confusion.

And critically, projects fail when leadership resists change. AI adoption is not just a technology challenge—it’s a cultural one. If partners and leaders don’t use AI themselves, don’t champion its benefits, or worse, quietly discourage it, the entire firm feels the hesitation.

Mindset is key

What I see among successful firms is a very clear approach. They treat AI rollouts as transformation projects. They run innovation sprints, train their professionals, capture learnings, and keep a close eye on ROI. This mindset—structured, deliberate, and accountable, makes the difference between failure and lasting results.

From armies of people to armies of algorithms

One example stood out during our recent discussions. In a global audit tender, mid-tier firms cut their fees significantly but still lost to a Big Four competitor, who undercut them further thanks to AI-driven audit tools.

This shows us the competitive reality: we’re moving from ’armies of people’ to ’armies of algorithms.’ That means two urgent shifts for our profession:

1. Move beyond time-based billing. When AI tools compress months of work into weeks, hours no longer measure value. Output and outcomes must drive pricing.
2. Double down on relationships. Clients still want responsiveness, insight, and trust. Technology brings efficiency, but it doesn’t replace connection. That is where mid-sized firms can excel.

Four areas to focus on now

If you’re wondering where to start, here are four tactical steps I encourage every firm to take:

1. Talent and Roles – Redefine roles so working with AI is a core skill. Use AI to handle repetitive work, freeing people to focus on judgment and client service.
2. Processes and Data Governance – Invest in clean, consistent data. Without clear ownership of data, definitions of what your data is, and without quality controls—you can't trust your data on the output side, which includes AI.
3. Partnerships and Investments – Treat your staff, clients, and vendors as partners in AI adoption. Vendors, in particular, must be held accountable for the ROI they promise.
4. Culture and Leadership – Adoption starts at the top. If leaders don’t embrace AI, staff won’t either. Demonstrating change is more powerful than any memo.

Looking ahead

We have an opportunity to redesign how we work, to deliver greater value to clients, and remain competitive in a rapidly changing market.

We’ve moved beyond the hype of AI potential and are well into productivity. Our firms are harnessing the tools to deliver better outcomes for clients and their people.