PwC’s US chief warns partners resisting AI ‘has no place’ as a transformative business model

PwC’s US chief executive has issued a stark warning to senior staff, declaring that colleagues who resist artificial intelligence “have no place” at the company as it reshapes its business model to accommodate technological disruption.

Paul Griggs, who takes over as US CEO in May 2024, said the services giant is moving aggressively towards an AI-first operating model, with automation set to fundamentally change how tax, audit and consulting services are delivered, and priced.

In remarks reported by the Financial Times, Griggs made it clear that no one within the organization will be exempt from the transformation, warning that those unwilling to embrace AI will be left behind. He said any partner who believes they can get out of the transition “won’t be here for long”, emphasizing the urgency with which the company is pursuing change.

At the heart of PwC’s strategy is a move away from the standard billable hours model that has long underpinned the Big Four economies. Instead, the company is developing AI-powered tools that can deliver services directly to customers without the need for constant human involvement.

Some tax and consulting services are being converted to automated platforms that clients can access independently, and pricing is expected to shift to subscription-based models instead of time-based billing. This marks a major departure from the labor-intensive structure that previously relied on large teams of small staff performing routine analytical and administrative tasks.

The company is set to formalize this orientation with the launch of “PwC One”, a new AI platform that gives clients access to a suite of automated services. Initially covering areas such as mergers and acquisitions with due diligence and sophisticated tax advisory, the platform is expected to grow rapidly as PwC builds its AI capabilities.

The move reflects a broader challenge facing the professional services sector. Advances in productivity AI and automation are increasingly able to handle tasks once reserved for consultants and analysts, raising questions about the long-term viability of traditional advisory models.

For companies like PwC, Deloitte, EY and KPMG, the risk is twofold. AI could not only reduce the need for large staff, but also enable clients to bring more skills in-house, completely bypassing external consultants. In response, PwC is trying to reposition itself as a provider of expertise and a developer of innovative technology solutions.

Griggs’ comments also reflect a culture shift within the firm, where adapting to AI is becoming an expectation rather than a specialist skill. Executives are told that embracing automation is no longer optional, but essential to stay relevant in a rapidly evolving market.

Industry experts say this change is inevitable. Raj Abrol, CEO of Galytix, described AI as a transformative force in risk management and decision-making, especially in an era characterized by economic and global uncertainty. He noted that the ability to process and interpret large data sets in real time is becoming a key competitive advantage for organizations navigating complex environments.

Kenny MacAulay, chief executive of accounting platform Accounting Office, was blunt, saying AI skepticism is incompatible with modern business leadership. He said firms that fail to integrate AI quickly risk falling behind competitors who are already using automation to improve efficiency and customer outcomes.

PwC’s aggressive stance highlights how quickly AI is moving from experimental technology to operational necessity. As the company accelerates its transformation, the message to its employees is unclear: adapt to an AI-driven future, or risk being replaced by those who will.