PricewaterhouseCoopers LLP (PwC), one of the world’s leading accounting firms, has joined forces with OpenAI, the parent company of ChatGPT, to offer its clients AI-generated advice. This strategic partnership marks a significant step forward in the professional services industry as it seeks to enhance efficiency and cut costs. Here’s a closer look at this groundbreaking collaboration:
The AI-driven consultation
PwC will leverage artificial intelligence (AI) to provide consultation services to its clients, focusing on complex tax, legal, and human resources matters. This includes tasks such as due diligence on companies, identifying compliance issues, and even offering recommendations on whether to proceed with business deals. This move positions PwC as a pioneer among the Big Four audit firms in harnessing the power of AI for client services.
The role of openAI’s ChatGPT
OpenAI’s ChatGPT, known for its conversational AI capabilities, will play a central role in this partnership. As one of the leading companies in generative AI technology, OpenAI brings expertise to help PwC enhance its advisory services.
Adapting to industry challenges
The professional services industry has faced challenges such as slowing growth and cost pressures. PwC’s decision to adopt AI-driven solutions aligns with industry-wide efforts to adapt to these challenges. Other audit firms, including Deloitte, Ernst & Young, and KPMG, have also explored AI to improve productivity.
No immediate job cuts
While adopting AI technology often raises concerns about job displacement, PwC has assured that the partnership with OpenAI won’t result in immediate job cuts. Instead, it aims to enhance the capabilities of its workforce through AI-driven assistance.
PwC recognizes the increasing compliance burden faced by businesses globally. Partnering with OpenAI and implementing AI systems will help PwC’s clients navigate complex regulatory environments effectively.
Harvey, an AI startup backed by OpenAI specializing in professional services, is also a part of this collaboration. This addition further enriches the suite of AI-driven tools available to PwC.
Initial deployment in the UK
The AI system is currently in the initial stages of deployment in the United Kingdom. Approximately 650 PwC staff will have access to the system for testing and training purposes. The firm’s plans include expanding access to more than 10,000 employees across 50 countries in the coming months.
Supercharging project management
One of the key benefits of this AI partnership is the ability to accelerate project completion significantly. PwC expects its employees to complete several major projects in the time it would traditionally take to finish just one and with a higher quality standard.
Transforming Large-Scale Projects
The collaboration with OpenAI opens the door to tackling large-scale projects that would have been deemed too costly or time-consuming in the past. This partnership aims to reshape how professional services firms handle their most substantial undertakings.
Brad Lightcap, Chief Operating Officer at OpenAI, sees great potential in AI’s role within professional services. He highlights its value in legal workflows, accounting, and tax processes, underlining the transformative power of AI-powered assistants.
A landscape of AI investments
The Big Four audit firms have increasingly invested in AI solutions to enhance productivity and stay competitive. KPMG, for example, has committed a multi-billion-dollar investment in Microsoft’s generative AI and cloud services. Ernst & Young LLP has partnered with IBM to streamline HR processes using AI, while Deloitte has expanded its collaboration with Google Cloud to develop AI-powered solutions for clients. PwC had already started using chatbot services to expedite tasks like document summarization earlier this year.
Fiona Czerniawska, CEO of Source Global Research, points out that while AI-embedded tools can help reduce costs, there is a risk of professional service firms prioritizing cost-cutting over developing more effective solutions. Striking the right balance between efficiency and quality will be key for firms in this evolving landscape.
Investing in the future
PwC has not disclosed the exact value of its partnership with OpenAI and Harvey. However, it has revealed that its UK branch is allocating £100 million ($122 million) towards AI initiatives this year. This substantial investment underscores PwC’s commitment to harnessing the potential of AI to benefit both its clients and its workforce.
In a world where complexity and compliance challenges continue to grow, PwC’s pioneering partnership with OpenAI signals a significant shift towards AI-driven advisory services in the professional services industry. As the deployment of AI systems accelerates, the industry will be closely watching the outcomes, impacts, and opportunities that emerge from this innovative collaboration.
