PwC Partners with OpenAI to Offer AI-Generated Advice in Professional Services
PwC has joined forces with OpenAI, the owner of ChatGPT, to provide their clients with advice generated by artificial intelligence (AI). This collaboration marks PwC as the first of the Big Four audit firms to partner with OpenAI, a leading company in generative AI technology. By utilizing AI, PwC aims to enhance efficiency and productivity in areas such as tax, legal, and human resources.
Through this alliance, PwC plans to leverage AI to address complex matters like conducting due diligence on companies, identifying compliance issues, and even providing recommendations on authorizing business deals. With a focus on cutting costs and boosting productivity, PwC is taking proactive measures to adapt to the current slowdown in professional services.
While PwC is freezing pay increases and bonuses for some of its 25,000 UK staff, other audit firms, including Deloitte, Ernst & Young, and KPMG, are also making staffing adjustments. However, the partnership between PwC and OpenAI is not expected to result in immediate job cuts.
Bivek Sharma, COO for tax, legal, and people at PwC UK, expressed his excitement about the AI system, stating that it already behaves like a knowledgeable partner with a 25-year tenure. Sharma emphasized the increasing complexity that the C-suite faces due to a rising compliance burden and geopolitical factors, highlighting the necessity of AI in navigating such situations.
In addition to OpenAI, PwC has also partnered with Harvey, an AI startup specializing in professional services. The AI system is currently being implemented in the UK, where around 650 staff members will gain access for testing and training purposes. PwC plans to expand the system’s access to more than 10,000 employees across 50 countries in the coming months.
Brad Lightcap, COO at OpenAI, expressed excitement about the potential of these AI models, particularly in assisting legal, accounting, and tax workflows. The Big Four audit firms have been increasingly investing in AI technologies to boost productivity. For example, KPMG recently made a multi-billion-dollar investment in Microsoft’s generative AI and cloud services, while Ernst & Young partnered with IBM to streamline HR processes using AI. PwC has been utilizing chatbots since March to expedite tasks like document summarization.
It is essential for professional service firms to strike a balance between cost reduction and developing innovative AI solutions. Fiona Czerniawska, CEO of Source Global Research, warns that focusing solely on cost reduction with AI-embedded tools may hinder the development of better solutions.
While the financial details of the PwC and OpenAI partnership remain undisclosed, PwC has allocated £100 million ($122 million) towards AI investments this year in the UK.
As PwC pioneers the use of AI-generated advice in professional services, it is expected that other firms in the industry will closely follow suit. In an era of increasing complexities, AI offers tremendous potential in optimizing efficiency and decision-making for businesses worldwide.
