From Yahoo Finance: 2025-05-20 13:07:00

The Big Four consulting firms, Deloitte, PwC, EY, and KPMG, dominate the professional services industry. Despite their long-standing dominance, AI-driven automation is poised to disrupt their business models, organizational structures, and workforce. This disruption could lead to a significant reduction in profits and the automation of up to 50% of roles within the next three to five years.

While some believe AI will make consultants and accountants obsolete, others argue it will free up time and drive productivity. The Big Four’s reliance on traditional billable hours and outcomes-based pricing models is at risk due to AI-driven disruption. Adaptation and upskilling are necessary for survival, especially for large organizations like the Big Four.

Midmarket consulting firms are benefitting from AI, as automation levels the playing field and increases productivity. Smaller firms can now compete with larger organizations by leveraging AI solutions to streamline tasks and enhance client service. The disruption caused by AI is prompting a shift in talent acquisition, with candidates from the Big Four showing interest in boutique firms’ innovative approaches.

The Big Four have invested billions in AI technology, giving them a strategic advantage over smaller firms. Despite the challenges posed by AI disruption, the Big Four’s structural advantages, expertise, and ability to adapt at scale may help them overcome these obstacles. Deep sector experience, quality datasets, and skilled professionals are key strengths for handling ethical, security, and regulatory challenges in the AI era.

Read more: AI is coming for the Big Four too