The professional services landscape is changing faster than it ever has before. Over 20 years of Beaton Benchmarks, research has repeatedly told us clients want more for less. In this competitive environment, high-performing firms must be able to quickly identify and adapt to changes – or risk falling behind.
To explore what is happening at the start of the new financial year, Beaton asked winners of the 2024 Client Choice Awards to identify the key trends facing professional services firms in 2024-25. We interviewed respondents from firms across the spectrum of legal, accounting and built and natural environment.
From their responses, four key trends emerged that are poised to transform professional services.
1. Artificial intelligence (AI)
If your firm is not already working with AI, you need to be. That is the clear message coming from the top-performing firms we spoke to.
“The most impactful trend is the widespread adoption and integration of artificial intelligence (AI),” said Darren Jurevicius, Managing Director at Resonate Consulting.
“AI technologies are becoming crucial for enhancing efficiency, accuracy, and innovation in our field.”
AI can help to reduce costs by automating routine tasks and analysing large datasets or documents with speed and accuracy that humans cannot replicate. And while firms have been using machine learning and other pre-cursors for generative AI for some of these tasks for years, the technology is becoming increasingly ubiquitous and accessible to all consultants via platforms like Chat GPT and Microsoft Copilot.
Moreover, pressure is coming from clients for firms to pass on the cost reductions and value AI offers. Clients are highly aware of the cost reductions and efficiencies AI can create and expect their advisors to take advantage. A report by Thomson Reuters in 2024 confirms this – finding more than half of professionals surveyed from corporate legal (58 per cent) and corporate tax (56 per cent) departments said the outside firms they work with should be using generative AI.
Tony Tilenni, Principal of Tilleni Stiles & Associates, agreed.
“There is no doubt that we need to maximize the use of the latest technologies including AI to improve efficiencies and reduce the cost of advice to clients,” Tilenni said.
However, with all the enthusiasm for AI comes a warning: clients expect their advisors to use data ethically and securely. High-profile data breaches such as the Optus or Medibank hacks in 2022, and the breach of Reserve Bank of New Zealand online files in 2021, show how damaging technology can be to a reputation when things go wrong.
The take-home message? Adopt AI but do so alongside excellent data security plus organisation-wide education on how to use it responsibly.
The most impactful trend is the widespread adoption and integration of artificial intelligence (AI).
2. Flexibility
It’s a trend we have been hearing since the Covid-19 pandemic, and one that seems unlikely to go away soon. Flexibility is one of the biggest trends shaping professional services in 2024-25.
“Professional services firms have historically been quite structured, a bit of the ‘9 to 5’. We are finding that flexibility, coupled with the use of AI, is moving at a rapid pace,” said James Wyrewenaden, Director at Prestige Partners.
“Clients want the flexibility to conduct their business outside the traditional landscape, and the systematic improvement with learning technology is allowing a new wave of wealth and vision to change how accountants are utilised. The demand for thinkers and strategists is increasing, while tech/AI is quickly removing the historical repetition.”
Professionals want to work flexibly – but clients also want flexibility from their advisors. Clients expect their advisors to be available by mobile, remotely and at different hours or via different platforms to suit the “new normal” of business in 2025.
And while the focus on flexibility is often seen as a relatively new benefit of the post-Covid era, the reality is it is one aspect of a broader theme that clients have valued since the inception of professional services. That is, a better client experience (CX).
Investing and improving CX is a proven way to win work and satisfy clients. Plus, it has additional benefits from firms’ point of view. Improving CX usually leads to more engaged, happier employees – and could even be a hidden weapon in the war for talent. Flexibility that leads to a greater client experience will be the most impactful trend in years to come.
Clients want the flexibility to conduct their business outside the traditional landscape.
3. Adaptation to renewable energy shifts, sustainability and climate change
In 2024-25, preferencing renewable energy and becoming more sustainable as a business will become a key consideration for professional services firms. Clients increasingly want to work with advisors making efforts to reduce their environmental impact.
For built and natural environment firms, this will have major ramifications for how designers, planners, architects and engineers develop solutions for clients.
“In both the environmental and planning jurisdictions, some of the key focus areas are sustainability and climate change. Choices such as the fuel we use, how we manage our waste, the chemicals we use in our homes and gardens, household ventilation, the noise we create, etc., demonstrate our values and attitudes to our environment, community, health and wellbeing,” said Luke Farrell, Principal Environmental Scientist at Element Environment.
“The four main environmental issues that are most likely to influence the activities of our business are climate change, pollution, sustainability and waste reduction. These four things impact the way projects are designed and what Element – as environmental and planning consultants – need to assess and consider.”
Firms working in all industries should see this trend not as a challenge, but an opportunity to get on the front foot and even win work. Sustainable practices not only protect the planet but can also enhance your brand reputation, ensure regulatory compliance, and drive long-term financial success.
In both the environmental and planning jurisdictions, some of the key focus areas are sustainability and climate change.
4. Giving back and ESG considerations
Environmental, social and governance (ESG) considerations are increasingly impacting the way professional services firms work. The regulatory environment in this space is evolving quickly, with ASIC proposing to make climate-related disclosures mandatory for companies. Already, nearly 75 per cent of the ASX200 have committed to or are voluntarily reporting climate-related information.
But it’s not only legal requirements that are causing change in this space – more firms are seeing the benefits of integrating ESG principles into their operations and strategies. There is an increasing focus on diversity, inclusion, pay equity and health and safety. Firms that prioritise ESG are finding it easier to attract and retain talent.
In 2023, research by McKinsey and NielsenIQ found consumers in retail are choosing products that make ESG-related claims over other products. Clients of professional services, too, increasingly want to work with advisors who consider their place in the world and work ethically with ESG considerations in mind. And they are looking for help from professional services firms to help guide them through implementing ESG throughout their own organisations.
“To know that our goal is that we’ll have the inspiration to create lasting change in our communities is a pretty wonderful strategic priority to work towards,” said Haley Rich, Principal Planner at Element Environment.
“This is an exciting time to work in this space where the sphere of sustainability – something so good and necessary for people and planet – is driving professional excellence.”
Conclusion
Client sentiment and expectations in professional services are continually evolving. The above four trends are poised to transform the market in the new financial year. However, client preferences are broad and there may be specific trends relevant to an industry or size of firm that a Beaton Benchmarks report can reveal. Evaluating a firm’s performance against the market annually will not only improve the client experience but also help to enhance efficiency, innovation, and overall value proposition.
If any of this news surprises you, it might be time to do a pulse-check on what your clients really want from your services via a feedback monitoring system like Beaton Debrief.
Actionable client feedback and tailored benchmarking
Registration for Beaton Benchmarks is now open for a limited time. Participate for free in the largest, most comprehensive client sentiment industry benchmarking study in professional services.
