TL;DR:
- PwC’s $1 billion investment over three years is reshaping its workforce with AI technology.
- The initiative includes AI training for all 75,000 employees, strategic partnerships with Microsoft and OpenAI, and expanding AI solutions for clients.
- PwC’s proactive approach to generative AI aims to lead and manage disruption rather than being passive observers.
- An internal “ChatPwC” tool powered by OpenAI is being used to streamline work processes and improve efficiency.
- Custom foundation models from startup Harvey are assisting employees in tax, legal, and HR functions.
- PwC’s commitment to AI is seen as an enabler, not a replacement for human work, and job layoffs are not anticipated.
Main AI News:
In a world increasingly defined by technological advancements, PwC has taken a bold step into the future. It all began at the prestigious Davos gathering, where conversations about the potential of Artificial Intelligence (AI) reached a crescendo. Joe Atkinson, PwC U.S.’s Chief Products and Technology Officer, found himself engaged in discussions with Tim Ryan, the U.S. Chair of PwC, on the transformative power of generative AI. Atkinson recalls this momentous event as the genesis of a groundbreaking journey.
“There’s probably not a technology development I’ve seen in 30 years that has a greater fear of missing out in the C-suite than this one,” Atkinson reflects, emphasizing that while PwC had been immersed in AI research and implementation for years, it was the emergence of ChatGPT that truly captivated the imagination of non-tech executives.
Fast forward merely four months, and the U.S. division of PwC, a global leader in accounting and consulting, unveiled an ambitious plan: a staggering $1 billion investment spanning three years, dedicated to embracing this new technological frontier. This initiative encompasses expanding AI solutions for clients, forging strategic partnerships with industry giants Microsoft and OpenAI, and most notably, investing in comprehensive AI training for their workforce of 75,000 professionals. Spearheaded by visionaries like Joe Atkinson and Mohamed Kande, the Consulting Solutions Co-Leader poised to become PwC’s next global chair, alongside the guidance of Yolanda Seals-Coffield, the Chief People Officer, this transformational endeavor is set to reshape the future of work at PwC.
Winston Weinberg, President, and Co-founder of Harvey, a startup collaborating with PwC to offer customized large language models for tax, legal, and HR domains, lauds the firm’s proactive stance. “I think they’re ahead of the curve,” he commends. Harvey, much like PwC’s own Atkinson, Kande, and Seals-Coffield, is recognized on the 2023 Forbes Future of Work 50 list.
PwC is not alone in its pursuit of AI-driven excellence. Professional services firms globally are grappling with an industry slowdown and the looming potential of AI to disrupt traditional revenue models. Deloitte, for instance, announced a monumental $1.4 billion investment in December, solely dedicated to employee training on cutting-edge technologies, including AI. Similarly, EY and KPMG have made substantial commitments to harnessing the power of AI in their operations.
However, amidst the barrage of daily announcements from tech giants and fledgling startups about new AI tools and features, PwC’s investment serves as an early testament to the seismic shifts already underway. The impact of AI is felt most profoundly in the realm of professional services, where knowledge work forms the bedrock of the industry—spanning legal and audit services, due diligence for mergers & acquisitions, and consultancy in digital operations.
Joe Atkinson sums it up succinctly: “Generative AI is the first technology in my 30-plus years that has any hope of actually accelerating and improving knowledge management in knowledge firms.” At PwC, the decision to embrace generative AI was swift and resolute. The executive team, post-Davos, faced a critical choice: passively observe AI’s evolution or proactively position themselves at the forefront of this transformative wave. They opted for the latter, with Atkinson emphasizing their desire to control, manage, and lead the disruption.
By March, PwC had assembled an internal team dedicated to AI, initiating pivotal conversations with Microsoft. Come August, PwC embarked on a comprehensive AI training program for its workforce, addressing critical topics such as AI ethics, responsible usage, and optimizing AI tools for superior results. An impressive 60% of employees have already embraced this training, with the commitment to ensure that all 75,000 U.S. PwC employees receive this invaluable opportunity to future-proof their skills.
Yolanda Seals-Coffield, Chief People Officer, affirms the company’s unwavering commitment: “Our commitment is not to leave anyone behind … we’re going to give you the opportunity to futureproof your skills as the market continues to emerge.” To expedite this transformative journey, PwC has strategically deployed approximately 1500 “activators” within the organization. These dedicated individuals, part of the innovative “My+” talent strategy, play a pivotal role in facilitating change management efforts. They actively promote the benefits of new technologies and encourage their adoption among employees. “My+” also encompasses tailored benefits, enhanced coaching and leadership development, and a cutting-edge AI-driven internal marketplace, enabling employees to match their skills with project assignments seamlessly.
Simultaneously, PwC is putting AI to work, both with clients and within its own corridors. The internal “ChatPwC” tool, powered by OpenAI’s technology, provides employees with a secure platform to explore AI’s potential, transforming them into what Atkinson aptly terms “client zero.” Tax associates leverage this tool for assisting with asset valuations, while business analysts streamline their workflow by swiftly summarizing extensive reports for presentations. This innovative approach has already saved weeks of effort for various teams. Approximately 1,000 employees gained access to this tool in July, with a full-scale rollout slated for the year’s end.
In select divisions of PwC’s U.K. unit, employees specializing in tax, legal, and HR now have access to custom foundation models provided by startup Harvey. These models offer invaluable support for tasks such as contract review, due diligence for M&A transactions, and generating legal insights. These insights, in turn, are reviewed and shared with clients by PwC’s dedicated staff. The global expansion of this initiative across 50 territories is scheduled to commence in the coming year.
While the industry faces the specter of a slowdown, the impact of AI remains a source of intrigue. Seals-Coffield asserts that, aside from performance management issues, the U.S. unit has not resorted to layoffs this year, nor does it anticipate AI eliminating jobs at PwC. “We’ve said to our people we do not see generative AI as something that replaces jobs,” she declares. “We see it as something that is an enabler to support the human work. There is always going to be the requirement of independent thought and skepticism and judgment in our ability to deliver our work.”
Conclusion:
PwC’s substantial investment in AI training and technology, along with strategic partnerships, positions the company at the forefront of AI adoption in the professional services industry. Their proactive approach to embracing AI as an enabler rather than a job replacement sets an example for the market, indicating that AI can enhance productivity and support human work, potentially transforming how professional services are delivered.
