Professional services organisations are at their best when long-held notions of service are enhanced by embracing the future, writes Dr Stephen Moss
Professional services organisations are at their best when long-held notions of service are enhanced by embracing the future, writes Dr Stephen Moss
One of the top voices on technology in China and the founder of Sinovation Ventures, Kai-Fu Lee, recently declared that Artificial Intelligence (AI) will replace 50% of all jobs in the next decade.
While the hardest hit industries will likely be in be transport, logistics, retail and food, advances in machine learning, cognitive computing, speech recognition and what is known as “deep learning” will soon see robots replace people in a range of sectors, including the professional services industry.
Yet there are other forces that will reshape the industry that need to be deeply considered.
The AI impact on professional services
The use of AI has already started to happen on a small scale in the legal industry, with machines undertaking functions previously undertaken by paralegals. This is set to further expand with robots being able to perform legal discovery, environmental analysis and complex engineering tasks.
Unfortunately, many leaders in the legal sector are in at least in some denial around the emerging threat but also the opportunities of AI to their business fundamentals and their current workforce.
In our ECP Legal 2016 Australian Managing Partner Survey, we found that while 50% of managing partners believed technological change was the biggest challenge to their business in the near future, only 15% had identified AI as a key plank of the long term strategic and technological direction of their firms.
I suspect that this is no different in any other industry within the professional services sector, except perhaps for the IT sector.
A good example of this is Crowd & Co*, a tech company that is enabling and enhancing the legal services industry. Crowd & Co offers a two-sided marketplace connecting general counsel with legal practitioners.
Human psychology also reshaping the sector
In regard to people and the future workforce of the professional services sector – which is the strongest growing sector of the Australian economy – there needs to be a dramatic rethink by many if the professional services firms are to survive.
Many of the forecasts and psychological behaviours we are seeing suggests professional services firms need to embrace more flexible work environments as labour becomes harder to find and Gen Y and millennials demand more from their workplaces.
These people are increasingly wanting more flexibility to pick and choose where, when and how they work.
More flexible and more variable employment arrangements are on the rise globally and businesses need to adapt to this trend to attract and keep the best and brightest in their workforce.
Ensuring that your firm is one where quality is emphasised, rather than office ‘presenteeism’, is one of the cornerstones of a successful workplace culture now and into the future.
A final force driving change
In addition to AI and people, another element that will reshape professional services is the move to restructure and take advantage of industry consolidation. Already we are starting to see this shift, with the big behemoths in the sector, such as PwC, repositioning themselves as a leading law firm and adding a marketing services offering.
All three forces are reshaping the industry and professional services executives need to start thinking now about the impact they will have on their company economics and the future workplace.
About the author
Dr Stephen Moss is the Managing Partner of Eaton Capital Partners which provides highly specilaised and bespoke services in two practice areas – corporate advisory and legal services. ECP Legal leads mandates in governance and management, strategy and discreet partner search, while ECP Advisory leads M&A transactions, assists with divestments and provides guidance to the wider professional services sector.
*Eaton Capital Partners is an investor in Crowd & Co
One of the top voices on technology in China and the founder of Sinovation Ventures, Kai-Fu Lee, recently declared that Artificial Intelligence (AI) will replace 50% of all jobs in the next decade.
While the hardest hit industries will likely be in be transport, logistics, retail and food, advances in machine learning, cognitive computing, speech recognition and what is known as “deep learning” will soon see robots replace people in a range of sectors, including the professional services industry.
Yet there are other forces that will reshape the industry that need to be deeply considered.
The AI impact on professional services
The use of AI has already started to happen on a small scale in the legal industry, with machines undertaking functions previously undertaken by paralegals. This is set to further expand with robots being able to perform legal discovery, environmental analysis and complex engineering tasks.
Unfortunately, many leaders in the legal sector are in at least in some denial around the emerging threat but also the opportunities of AI to their business fundamentals and their current workforce.
In our ECP Legal 2016 Australian Managing Partner Survey, we found that while 50% of managing partners believed technological change was the biggest challenge to their business in the near future, only 15% had identified AI as a key plank of the long term strategic and technological direction of their firms.
I suspect that this is no different in any other industry within the professional services sector, except perhaps for the IT sector.
A good example of this is Crowd & Co*, a tech company that is enabling and enhancing the legal services industry. Crowd & Co offers a two-sided marketplace connecting general counsel with legal practitioners.
Human psychology also reshaping the sector
In regard to people and the future workforce of the professional services sector – which is the strongest growing sector of the Australian economy – there needs to be a dramatic rethink by many if the professional services firms are to survive.
Many of the forecasts and psychological behaviours we are seeing suggests professional services firms need to embrace more flexible work environments as labour becomes harder to find and Gen Y and millennials demand more from their workplaces.
These people are increasingly wanting more flexibility to pick and choose where, when and how they work.
More flexible and more variable employment arrangements are on the rise globally and businesses need to adapt to this trend to attract and keep the best and brightest in their workforce.
Ensuring that your firm is one where quality is emphasised, rather than office ‘presenteeism’, is one of the cornerstones of a successful workplace culture now and into the future.
A final force driving change
In addition to AI and people, another element that will reshape professional services is the move to restructure and take advantage of industry consolidation. Already we are starting to see this shift, with the big behemoths in the sector, such as PwC, repositioning themselves as a leading law firm and adding a marketing services offering.
All three forces are reshaping the industry and professional services executives need to start thinking now about the impact they will have on their company economics and the future workplace.
About the author
Dr Stephen Moss is the Managing Partner of Eaton Capital Partners which provides highly specilaised and bespoke services in two practice areas – corporate advisory and legal services. ECP Legal leads mandates in governance and management, strategy and discreet partner search, while ECP Advisory leads M&A transactions, assists with divestments and provides guidance to the wider professional services sector.
*Eaton Capital Partners is an investor in Crowd & Co
