Government consultants are concerned about the increasing use of AI in accounting programs.
Tax season is in full swing, and the pressure is mounting on government consultants as the Trump administration intensifies its scrutiny on spending with external advisors. An analysis by the Financial Times reveals that over 30 contracts with top consultants have been either partially or fully terminated. The largest contract affected is an IT services umbrella deal worth up to $1.9 billion over seven years led by Deloitte for the Internal Revenue Service.
However, the increased focus on consulting contracts has left employees at Deloitte and Accenture feeling uneasy about their job security. Sources within Deloitte’s Government & Public Services division shared their concerns with Business Insider, noting that ongoing federal contract reviews have led to projects being scrapped, resulting in a surplus of available staff without work. This situation has created a tense atmosphere among employees, with some considering leaving the government consulting sector until the dust settles.
In a potentially related development, PwC’s consultancy activities in Saudi Arabia have hit a roadblock, with reports emerging that the firm has been barred from securing new contracts with the Public Investment Fund until next year. The slowdown in oil prices and other factors have contributed to this decision, signaling a possible decline in opportunities for foreign consultants in the region. This comes as a blow to major consulting firms like PwC, McKinsey & Co., and Boston Consulting Group, which have played a crucial role in supporting Saudi Arabia’s Vision 2030 transformation initiative.
Meanwhile, in the realm of accounting, colleges are incorporating artificial intelligence (AI) into their programs to stay relevant in a fast-evolving industry. Derek Thomas, national partner-in-charge of university talent acquisition at KPMG US, emphasizes the importance of AI skills, noting that while AI may not replace jobs entirely, individuals proficient in its use will have a competitive advantage in the workforce.
As the landscape of the accounting profession evolves, firms are also undergoing changes. Cleveland-based Cohen & Company recently announced its acquisition of Chicago-based Tassi and Company, highlighting the ongoing trend of consolidation within the industry. At the same time, IRS employees facing layoffs are finding opportunities in an increasingly competitive job market for skilled accountants and auditors. Many are expected to return to the private sector, bringing their expertise in corporate and international tax back to Fortune 500 companies.
In response to a shortage of CPAs in Maryland, accounting leaders are seeking innovative solutions to attract and retain talent. The industry is exploring strategies to develop talent internally and advocating for changes to CPA licensing requirements to make it easier for individuals to enter the field. This proactive approach aims to address the growing demand for qualified accounting professionals in the state.
