Deloitte, one of the "big four" accounting firms, looks to AI to curb future mass layoffs

[Alfonso Maruccia]

Why it matters: Deloitte is a multinational professional services network and is considered one of the "Big Four" accounting companies in the world, along with EY, KPMG, and PwC. The consulting giant employs hundreds of thousands of people, which is becoming an issue needing some AI-based magic to avoid future mass layoffs.

In 2023 alone, Deloitte hired an additional 130,000 staffers. Now that the demand for professional services is slowing down, the UK-based corporation is trying new technology solutions to find a place within the company for hundreds of those newly acquired employees rather than resorting to layoffs.

Deloitte wants to use AI algorithms to evaluate the skills of its existing staff, creating plans to effectively shift employees from unproductive parts of the business to more productive roles. Other consulting companies have already begun experimenting with AI-based placement to eliminate repetitive, time-consuming tasks like prepping documentation for internal meetings or gathering data for a client pitch.

Generative AI programs are very good at making sentences or even extensive essays when responding to user prompts. Deloitte bets that machine learning algorithms are also suitable for skill evaluation and human resource management, an area where the colossal corporation currently has issues.

During this year's hiring spree, Deloitte began informing thousands of US and UK-based employees that their jobs could soon become "redundant." Deloitte global chief talent officer Stevan Rolls said avoiding large swings of hirings and layoffs should be the ideal target for a consulting firm. Rolls remarked that artificial intelligence could help Deloitte become more "efficient and effective" in finding the right people for the right job.

Deloitte's current headcount is nearing 460,000. The company hires 3x more people than a decade ago, while revenue has only doubled. Rolls said that if Deloitte can keep a successful business going by doubling its size again, it would need to hire a quarter million people yearly.

If AI experimentation with staff management is successful, the consulting giant could still aim to double revenue while counting on a less fluid and shifting headcount. Rolls said it might not be fewer, but it might be the same as they hire now.

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https://www.techspot.com/news/101250-big-four-accounting-firm-looks-ai-curb-future.html

 

[redgarl]

They didn`t get the part about AI which state that the outcome are a prediction.

 

[VitalyT]

Deloitte is pure evil. They built a system that lets them extremely over-charge their clients, while providing very poor service, and then get away with it. That system includes automatic removal of everything negative, such as reviews about them from Google, by simply paying Google for it. I read on a number of occasions of how Deloitte ripped off companies, but you can't find that information online anymore, all removed. We live in the age of ultimate corporate corruption.

 

[PEnnn]

Anybody who still has a shred of honesty at that cesspool of a company WILL be laid off, AI or not.

 

[kiwigraeme]

Deloitte is pure evil. They built a system that lets them extremely over-charge their clients, while providing very poor service, and then get away with it. That system includes automatic removal of everything negative, such as reviews about them from Google, by simply paying Google for it. I read on a number of occasions of how Deloitte ripped off companies, but you can't find that information online anymore, all removed. We live in the age of ultimate corporate corruption.

I worked for them - when decided needed some money to travel after goofing off for awhile after Uni
when it was Delays Hassles and Stalls ( Deloitte , Haskins and Sells-- merged a few years later with Touche Ross )
They used to feed a lot of crap to newbies - work hard - you can become a partner - young employees were coming in the weekend unpaid - I knew it was pure BS - you became a partner if you had pedigree , your connections - those bushy tailed workers - a high paid manager at most
Had a 99% charge out - decided thy paid not enough - so when to work for the NZ revenue department - Deloittes tried to offer me more money - still wasn't matching big increase in new job.
These firms hard to sue for liability or incompetence - still enjoyed my time as an auditor - imagine to be a good one - have to be able to read people - look outside the box sometimes.
I didn't get to do the fun part of going back and arguing points I took to my manager - mainly classifications of assets or liabilities - for my own sole trader business always did depreciation , classification that strongly favoured myself - is OK with Revenue mostly - if stick with it - ie not changing it every year to suit yourself

 

[Hexic]

Depends on your service line (department) of where the layoffs are happening. Alot of consulting roles are being laid off (this year, at least 2 waves already) as well as some risk I've heard.

I currently work for a B4 (not Deloitte) and we've definitely had some trimming this year.. but when we hired 100,000+ per year coming off of the wave we were on... It's only a matter of time. AI can help, but at points there are simply too many people for the same jobs.