PwC partners with OpenAI to offer AI-generated consultations
PricewaterhouseCoopers (PwC) is teaming up with OpenAI, the brains behind ChatGPT, to offer clients AI-generated guidance on complex issues in tax, legal, and human resources. This alliance aims to cut costs and boost productivity. PwC will be the first of the Big Four audit firms to collaborate with OpenAI, using AI to perform due diligence on companies, spot compliance problems, and even suggest whether to greenlight business deals.
Slowdown in the Big Four audit firms
This partnership comes at a time when major audit firms are in a cost-cutting frenzy due to a slowdown in professional services. PwC is freezing pay raises and bonuses for some of its 25,000 UK employees. Deloitte LLP plans to cut over 800 jobs in the UK. Ernst & Young LLP is trimming about 5% of staff from its UK financial services consulting division, and KPMG intends to reduce 125 consulting positions.
AI system behaves like a 25-year tenure partner
According to Bivek Sharma, Chief Operating Officer for Tax, Legal, and People at PwC UK, the new AI system is already performing on par with a partner who has 25 years of experience. Sharma believes that AI is essential for navigating the growing global compliance burden and the intricate geopolitical landscape. The partnership with OpenAI doesn't involve ChatGPT specifically and won't lead to job cuts in the near future, PwC said.
Harvey AI startup joins partnership for professional services
This collaboration also features Harvey, an AI start-up supported by OpenAI that focuses on professional services. The system is currently being tested and trained in the UK by around 650 staff members. PwC has plans to extend access to over 10,000 employees across more than 50 countries in the coming months. The AI system will allow workers to complete several major projects in the time it would take to finish just one, all while maintaining high standards.
Big Four audit firms investing heavily in AI solutions
The Big Four audit firms are increasingly investing in AI solutions to improve productivity and cut costs. KPMG recently entered a multi-billion-dollar investment with Microsoft for using generative AI and cloud services in its professional services. Ernst & Young recently joined forces with IBM to streamline HR processes using AI, while Deloitte broadened its partnership with Google Cloud to create AI-powered solutions for clients. Since March, PwC has also been using a chatbot to speed up tasks like document summarization.
