In the professional services sector, change is not just expected - it’s constant. My career began as an 18-year-old draftsman, and even then, I could see the relentless drive toward efficiency: I replaced a “tracer” simply because I was cheaper and faster, and later, AutoCAD replaced me. Moving up the knowledge chain was necessary to survive. Across the industry, consolidation and automation now require the same adaptability from everyone.
The Big Picture of Aggregation
The professional services landscape is rapidly consolidating, and this isn’t isolated to engineering. We see similar trends in other fields, from dentists (e.g., Abano Healthcare Group and Lumino) to opticians (EssilorLuxottica), audiologists (Amplifon), chemists (Green Cross Health), doctors, vets, and even funeral homes. Aggregation brings scale, which can mean greater margins, profitability, and brand value. But scale and standardization are just part of the story. Automation, symbolized by the dual-faced Greek god Janus, has a far-reaching impact, especially in professions where specialized knowledge has historically provided a stronghold.
Automation and the Knowledge Economy
Reflecting on my early career, I used tools like a planimeter to calculate areas - a specialized instrument requiring both purchase and training. Over time, this task transitioned to CAD, then to smartphones, and now, the knowledge to make similar calculations is accessible to nearly everyone. Tasks that once required specific skills have been democratized, often at no cost. Google, search engines, and AI-driven tools like GPT have made even complex calculations a click away, diminishing the barrier to entry for many once-specialized roles.
In this dynamic environment, efficiency doesn’t necessarily equate to profitability. While automation can reduce costs, it also creates competitive pressures that can lower fees, even when maintaining margins. The result? The need to continually replace lost work with new, undiscovered areas of expertise - what I call the “troublesome problem.”
True AI: Friend or Foe?
Artificial intelligence now extends beyond basic automation to encompass the very “knowledge and wisdom” levels of the DIKW (Data Information Knowledge Wisdom) hierarchy that professional services have relied on for their expertise. Google democratized knowledge, and today’s AI models are advancing context and meaning, making information more accessible than ever. Imagine a client using AI to evaluate BIM drawings or assess a building’s compliance with regulations - tasks traditionally reserved for highly trained professionals. As AI learns, it improves rapidly, which raises concerns about how to replace work rendered obsolete by these tools.
The Deltek Clarity survey underscores this challenge: only a small fraction of professional services firms consider themselves digitally mature. While many anticipate digital transformation within the next few years, adoption of AI has been limited, with only 52% of firms using AI tools at all, primarily in marketing. Deltek’s analysis highlights the allure of AI in improving efficiency, yet this efficiency can quickly turn into a race to replace commoditized work.
Building an “ARC” to Stay Afloat
Facing this rising tide requires proactive solutions, and for Abley, this means creating an “ARC”—automated repeatable consulting. Unlike traditional approaches, an ARC allows us to scale knowledge beyond one-to-one consulting relationships. For example, SafeCurves is a product that brings our expertise to a global market, empowering us to grow our reputation and reach while generating new revenue streams. This shift from a bespoke service model to a scalable solution has been challenging but essential for sustainability in a changing market.
Futureproofing: What’s Your ARC?
If your business could be submerged by these changes in the next two years, ask yourself: what will be your ARC, your scalable approach? Here are three steps to guide your journey:
This journey is demanding, but it is essential for those aiming to not only survive but thrive in the next evolution of professional services. The tide is rising; will you build an ARC, or find yourself searching for new waters?