PwC moves to unify global services as AI reshapes consulting sector
Big Four firm PwC is drawing up a blueprint to standardise its consultancy services across its global business, as the sector faces mounting pressure from the rapid rise of AI.
As businesses continue to invest in AI, the cracks in what this will mean for broader businesses are starting to show, with layoffs being blamed on the flurry of new tech.
However, while the professional services industry faces the greatest uncertainty across the board, the consultancy sector is at the forefront of this period of uncertainty.
AI is now reshaping the consultancy sector, with reports from the Financial Times stating that PwC is overhauling its global consulting business by designing standardised services.
The strategy, which includes aligning service offerings and promoting shared technology platforms, also involves increasing the use of shared staff in lower-cost locations, specifically India, as a primary hub.
Consultancy fees declined at PwC
Unlike other professional services firms, the Big Four, despite sharing the same name, operate as separate entities in each jurisdiction.
Like its competitors, PwC UK has seen a decrease in fees from its consultancy arm, reporting in its recent results that the division’s revenue declined by 3 per cent. Its risk division also saw revenue decrease by 3 per cent.
PwC’s goal with its new proposal is to eliminate the disjointed services that occur when national firms work together, which bosses believe puts them at a disadvantage compared with more integrated rivals.
The UK arm of the Big Four reportedly informed staff on Tuesday that it would merge its risk and consulting divisions, bringing together two of its three advisory businesses alongside audit and tax, while the deal advisory unit will remain separate.
Marco Amitrano, PwC UK senior partner, told the Financial Times: “This decision is about global alignment and we are leading on this along with our colleagues in the US and global firms.”
However, establishing a common standard across all countries within the Big Four has historically been difficult due to a fragmented global tax regime, local regulations, and differing laws that national member firms must follow.