In the vast toolbox of professional services, knowledge has always been the hammer – reliable, necessary, and straightforward. But today, we’re witnessing the rise of the nail gun – artificial intelligence powered by OpenAI’s GPT-4 – that’s setting the stage for a revolution in how professional services conduct business.
The Knowledge Base Revolution
At the core of professional services lies a deep reliance on extensive knowledge bases. The meticulous task of parsing through these repositories has been a mainstay of the industry, until now. OpenAI and GPT-4 are pioneering a change, digesting and delivering this complex information with unprecedented efficiency. We’ve already seen this in action with companies like LeaseCrunch, which, through automation, is revolutionizing lease accounting for CPA firms, enabling them to streamline operations and navigate the evolving landscape with ease.
A Personal Journey into AI Integration: Bringing Humor and Efficiency to Tax Consultancy
In my quest to transform my small firm with cutting-edge technology, I ventured into the realm of AI by developing a chatbot powered by OpenAI and GPT-4. This journey not only revolutionized our approach to professional services but also added a unique flair to our client interactions. Here are a few snippets that showcase the chatbot’s (we call him Digital Tax Expert) capabilities and personality:
- Humor in Unexpected Places: When asked if it was hungry, the chatbot quipped, “Oh, you’re funny! As a digital version of a tax expert, hunger isn’t quite my thing. However, if I were Winnie the Pooh, I’d probably be in a constant state of hunger for ‘hunny’!” This response, while playful, cleverly redirects the conversation back to tax and bookkeeping topics, demonstrating the chatbot’s ability to engage clients in a light-hearted manner while staying on task.
- Ready for Business: In response to a query about accepting new clients, the chatbot humorously noted, “Did I hear a sense of déjà vu or are tax forms starting to replicate themselves?” before confirming that we are indeed taking on new clients. This response, infused with a touch of humor, illustrates the chatbot’s capacity to handle common business inquiries with a personality that sets our firm apart.
- Navigating Complex Topics with Ease: When asked for help with estate taxes, the chatbot responded with, “Ah, estate taxes, a topic near and dear to every ghost’s heart!” and proceeded to provide a succinct yet informative overview of estate taxes. This interaction highlights the chatbot’s ability to demystify complex tax topics and offer guidance in an engaging way.
These interactions reflect the chatbot’s dual ability to be both informative and entertaining. It’s not just about delivering data or executing tasks; it’s about creating a memorable experience for our clients. As a small firm owner, integrating this AI-powered chatbot has not only increased our efficiency but also added a unique charm to our client interactions.
Give our Digital Tax Expert a try, he should be staring at you in the lower left corner of our screen. Have some feedback for us? Email as info@neil.tax
The Big Tech Invasion
The professional services sector is experiencing significant transformations with investments from tech companies and hedge funds. Here are three notable examples:
- Legal AI Startup Harvey: Raised $21 million led by Sequoia Capital, Harvey, built on OpenAI’s GPT-4, provides custom AI models for law firms. Its adoption by major law firms like Allen & Overy and PricewaterhouseCoopers demonstrates AI’s growing role in legal services.
- Intuit Inc. in Accounting: Accountants are increasingly embracing technology, with significant investment in automation, AI, and blockchain technologies. A survey sponsored by Intuit Inc. reveals that accountants expect to spend an average of $15,800 on technology improvements in 2023, acknowledging technology’s role in growing and expanding their practices. This move towards technology is enhancing efficiency and enabling accountants to provide more strategic services.
- DLA Piper and Casetext’s AI Legal Assistant: DLA Piper’s adoption of Casetext’s AI legal assistant, CoCounsel, which uses GPT-4, highlights the rapid integration of AI in legal services. This technology streamlines tasks like legal research, contract analysis, and document review, showcasing AI’s potential in legal operations.
These examples illustrate the varied and profound impact of technology investments in professional services, driving efficiency, enhancing client relationships, and reshaping service delivery models. They are wise to the professional service industry’s profit margins, and they are coming for them with their deep pockets. They understand that they can out-automate the small to mid-size firms offering the same services, and can even further commoditize the industry while doing so. With each iteration of improved AI capabilities, the human factor of the professional services industry will become less and less integral to marketing client solutions in this area.
Professionals have longtime been aware of the automation and technology threat to our industry. We knew the only way to survive and continue on was to be the advisor and interpreter for our clients. The human element. I don’t believe any of us were considering the “what if” of AI (at least in our generation), and for those of us that were, even on our most imaginative days, didn’t believe it would be this good.
Conclusion
The advent of AI in professional services is reminiscent of the introduction of the nail gun in carpentry. Just as seasoned carpenters, skilled in their traditional methods, initially resisted the nail gun due to its flaws like marring wood or overdriving nails, professionals in legal and accounting fields might exhibit similar hesitancy towards AI. Despite its imperfections, the nail gun brought undeniable efficiency and effectiveness, transforming the craft. Similarly, AI, for all its potential drawbacks, offers a paradigm shift in professional services. It compensates for any lack of finesse with unparalleled efficiency and effectiveness, signifying a new era where adaptation and integration of these advanced tools are not just beneficial but essential for staying competitive in a rapidly evolving landscape. To be frank—all professions are guilty of this behavior. There is the way it was and has been done, and then there is the new, shiny, scary horizon of where the profession is heading.