Professional Services Market To Grow by USD 2.08 Trillion (2024–2028), Driven by the Growing Focus on Digitalising Business Processes, AI-Powered Market Evolution, Says Technavio

Report on how AI is driving market transformation – The global professional services market size is estimated to grow by USD 2.08 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.7%  during the forecast period. Growing focus on digitalising business processes is driving market growth, with a trend towards growing trend of using ai and ml in professional services industry. However, shortage of skilled professionals poses a challenge.

Key market players include Accenture Plc, AECOM, Aon plc, Bain and Co. Inc., Boston Consulting Group Inc., Business Connexion Ltd., Charles Ghadban Accounting, Cleary Gottlieb Steen and Hamilton LLP, Deloitte Touche Tohmatsu Ltd., Dentsu Group Inc., Enviro Analysts and Engineers Pvt Ltd., Ernst and Young Global Ltd., FinExpertiza, Forvis Mazars, Oliver, Wyman & Company, Omnicom Group Inc., PricewaterhouseCoopers LLP, Publicis Groupe SA, Slalom Consulting LLC, and Tata Consultancy Services Ltd..

Market Driver

The professional services market is experiencing significant trends as businesses digitise their operations. AI and cloud technology are key drivers, with cloud-based accounting software and SaaS solutions becoming increasingly popular. Automation, real-time data, and financial transactions are now standard in many industries, from legal and consulting to scientific services. Cyber threats, including cyberattacks and cybercrime, are a growing concern. Service providers must implement security measures and incident response plans to protect client data.

AI and machine learning are essential tools for enhancing customer experience through platforms like Qualtrics, while automation streamlines business processes. Professional services firms offer advisory support, specialised technical services, design services, research services, and promotional services. Large enterprises require hybrid services, combining online and offline solutions. Remote working and business strategies are shaping the industry, with IT services playing a crucial role in digital transformation. Cyber breaches, identity theft, and the NIST Cybersecurity Framework are critical issues for data security.

Project-oriented services, Information Technology Outsourcing (ITO), and cloud computing are essential components of digital adoption programs. CDAP and data security are essential for managing financial data and experience management (XM). Environmental consulting, management consulting, tax preparation services, financial auditing, translation services, and IT services are all part of the professional services industry. Digital media and IoT are transforming the sector, with AI and ML providing enhanced customer experiences and automating communication.

The professional services industry is undergoing a notable shift with the integration of artificial intelligence (AI) and machine learning (ML). This transformation is bringing about new possibilities and enhancements across various sectors within the industry. For instance, Ernst and Young Global Ltd. (EY), a leading professional services firm, employs AI to boost its business services. EY’s AI application in professional services aims to amplify efficiency, precision, and productivity in areas such as auditing, tax consulting, and financial analysis. EY has engineered AI-driven tools to bolster its clients and internal teams, thereby improving the standard of services delivered. Likewise, PricewaterhouseCoopers LLP, another prominent professional services company, utilises AI to amplify its offerings.

 Market Challenges

• The professional services market is evolving rapidly with digitising business processes becoming a key trend. Artificial Intelligence (AI) and Cloud technology are transforming industries like accounting, legal, consulting, and IT services. However, these advancements bring new challenges such as cyberattacks and cybercrime.
• Service providers must prioritise security measures, including incident response plans, to protect financial transactions and real-time data. Professional services firms offer advisory support, specialised technical services, design services, research services, and promotional services. Large enterprises increasingly rely on online services, but hybrid services remain essential. Digital transformation through automation, AI, and ML enables enhanced customer experience and improved business strategies.
• Professional services software, including cloud-based accounting software and SaaS, streamlines invoice management, expense management, resource allocation, and project management. Automated billing and communication are essential for efficient operations. Cyber threats, including cyber breaches and identity theft, require data security measures. Adherence to frameworks like the NIST Cybersecurity Framework is crucial.
• Project-oriented services, Information Technology Outsourcing (ITO), and cloud computing offer solutions for businesses. Remote working and talent acquisition are critical in today’s business landscape. Resource management and digital adoption programs ensure optimal utilisation of resources. Professional services firms must adapt to these changes and provide expertise in areas like environmental consulting, financial data management, and experience management (XM) to stay competitive.
• The professional services industry faces a pressing issue: a shortage of skilled professionals, particularly in technology areas like artificial intelligence, machine learning, and data analytics. This talent gap hinders firms from meeting client demands, preserving service quality, and fostering growth. The root cause is the swift technological progression. While the industry adopts advanced technologies, the availability of proficient professionals has not matched the demand, resulting in a substantial skill deficit. For example, in the manufacturing sector, this scarcity is evident, making it a significant challenge for businesses to stay competitive.