AI In Professional Services Industry
By: Tripti Gadgade, Andrew Harvill, Samuel Karanja, and Christina Toscano
Introduction
According to Indeed, a professional service is a company that helps other “individuals, companies or organizations accomplish tasks or meet goals.” These types of services offer nonphysical products or services that will help another company improve. The uniqueness of the professional is that they often have specific expertise and are sought after for that expertise.1 Examples of professional services include accounting, IT support, legal services, therapy and more.
We have chosen to analyze the value chain of the professional services industry specifically on Architecture Design Consulting, Higher Education, & Supply Chain Logistics as examples. We chose these three industries due to our respective backgrounds on the team. While the clientele these three industries serve are different, inherently all are geared towards high quality services providing unique insights, market differentiating solutions based on human expertise derived from experience.
Overall, AI (Artificial Intelligence) has been heralded as a boon for the professional services industry. The use cases for integrating AI in the various stages of the service delivery process indicate efficiency and productivity can be exponentially increased which in turn leads to overall value for the customers. However, there are also several potential threats and challenges that the professional services industry may face with the increased adoption of AI technology. We elaborate on the context of all three industries below.
Higher Education
Within the field of higher education, AI is difficult to define (one need only look at attempts by administrators to regulate it to see how slippery it can be). Generally speaking, the version of AI being discussed the most within higher education is generative AI, such as ChatGPT, which use Large Language Models (LLMs) to create new text based on prompts. However, given the vast diversity of research and academic interests at a college or university, virtually every version of AI, from narrow, reactive machines that assist students in designing power point slides to deep learning models unlocking answers in vast amounts of data are represented.
Emerging Applications
Setting aside the ancillary activities present at any major college or university, such as procurement, legal teams, and fund raising, the educational mission at the core of higher education is currently being impacted by AI in three distinct ways: completing/easing the work of the instructor/administrator, completing/easing the work of the student, and introducing a new content area across all disciplines.
On the surface, the specific tools, and uses of AI as they relate to supporting both faculty and students are very similar. LLMs can be used to quickly provide content summaries and other written material, such as test questions. Image or content generators can produce visuals for presentations without the need for mastering complex software.
Machine learning programs can greatly accelerate the efforts of research and produce new ideas or opportunities to discover new insights at a faster rate. The differences between the way these two user groups currently leverage AI has more to do with generational divides in adopting new technology and prior knowledge that can help discern what content generated by AI has merit and value, with students being more ready to adopt and use AI for coursework, while faculty retain a more shrewd opinion of whether material produced by AI is acceptable, given their own expertise.
Regarding new teachable content, virtually every school on a college campus is grappling with how AI will disrupt the industries where graduates will be placed. With that in mind, determining curriculum for responsible and effective skill development in using AI tools is a quickly emerging field.
Stakeholder Impacts
Architecture Consulting
AI is set to transform the architectural field throughout the lifecycle of a building, from inception to operation and decommissioning. To understand how this will really affect the industry, we must first look at the description of an architect and what makes it a professional service. According to the dictionary, “Architects are professionals trained in the art and science of building design” and are “qualified to design buildings and to plan and supervise their construction”23. This service is sought after to help advise, design, and construct the world around us.
In relation to AI, during the design phase, generative design algorithms can produce multiple optimized design solutions based on specified constraints and goals. BIM (Building Information Modeling) data analysis leverages AI to identify patterns and inform decision-making, as well as enable highly realistic architectural visualizations and renderings. During the construction phase, AI-powered building automation systems optimize functions like HVAC, lighting, and security based on occupancy and preferences. In construction planning, AI algorithms optimize schedules, resource allocation, and waste reduction. Once the building is operational, predictive maintenance utilizes AI to analyze sensor data, anticipating equipment failures for proactive maintenance.
Overall, AI integration aims to enhance design processes, building performance, construction efficiency, and create sustainable, user-friendly built environments, driving innovation in architecture throughout the lifecycle of a building from inception to operation to decommissioning. Additionally, AI promises to significantly transform the architectural profession, enhancing efficiency and sustainability throughout a building’s lifecycle, but this also raises concerns about around misuse of the tools, ethical implications, and job displacement if not carefully implemented.
Emerging Applications
AI is set to have a profound impact on the architecture profession in the coming years, offering both opportunities and challenges. On the positive side, AI can assist architects by analyzing vast troves of data, codes, and regulations to provide insights and suggestions for optimizing designs based on factors like energy efficiency, structural integrity, and accessibility. AI algorithms can also aid in generative design, pushing out numerous iterations and visualizations to spark creative inspiration and innovative solutions. Virtual and augmented reality powered by AI will enhance architectural visualization, enabling immersive walkthroughs that allow clients to experience designs before they are built.
However, there are also potential downsides as AI may automate certain tasks currently performed by architects, leading to job displacement, or requiring significant reskilling. There are ethical concerns around AI perpetuating biases or making unclear decisions that impact the design process and built environment. Additionally, an overreliance on AI tools could erode traditional architectural skills and the human elements of design. Ultimately, architects will need to proactively adapt, embracing AI as a powerful assistive tool while maintaining human-centric practices and ethical oversight.
Stakeholder Impacts
Supply Chain Logistics
AI-driven robots and autonomous guided vehicles (AGVs) can automate various tasks within warehouses, such as picking, packing, and sorting items. These systems increase warehouse efficiency, reduce labor costs, and minimize errors. Further based inventory management systems can help reduce stocking costs while ensuring product availability. AI can also help optimize the last-mile delivery solutions. However, such automation of tasks could lead to job role changes or even elimination of such roles for the workers posing challenges for workforce management. For the companies providing AI driven technology solutions careful consideration must be given to return on investment for both internal usage and to the end-customers.
Emerging Applications
Companies in the supply chain logistics space are focused on minimizing the disruptions coming out of the pandemic. While speed of deliveries has always been important, AI is helping cut costs by fine tuning efficiency at all the touch points from order management to four-wall inventory in the warehouses to order delivery down to the last-mile distribution networks. Starting with AI-powered predictive analysis companies can now hone their demand forecast to generate highly accurate forecasts to meet the ebb and flow of customer demands. Further within warehouses, autonomous guided vehicles, robotic arms manning Putwall stations and bots are helping achieve operational efficiency while reducing labor costs. Lastly integration with AI-powered solutions is helping improve the customer experience through chatbots, personalized recommendations, seamless order tracking and tailored shipping options.4
Stakeholder Impacts
Short term and Long term Social and Environmental Performance
AI’s impact on the professional services industry in the short term can lead to significant efficiencies and productivity gains across the board. However, we must be cognizant of the long-term impacts such as job displacement, inclusivity in the access to beneficial AI-powered services and ethical and responsible use of AI when leveraging such powerful tools.
Higher Education
In the short run, AI will be mostly disruptive to the social and environmental impact of higher education, mostly because it is new, and systems have yet to adapt. For all of the benefits of AI in creating efficiencies for learning and research, AI is currently creating a backlog of bureaucratic issues to resolve along with clear ethical dilemmas for the industry as a whole. In the long term, AI use in higher education should have a profound impact on SDGs 4 and 17. The most obvious benefit of AI in education is that it stands to improve the quality and access. President Cabrera at GT has been quoted as saying that the most significant impact of ChatGPT in higher education has been to make the kind of tutoring and assignment assistance that used to only be available to those with the means to pay for it available for every student for free. In a way, the kinds of groundbreaking research developed by our best and brightest students may only end up being possible thanks to the tools AI has to offer every learner across the globe.
Architecture Consulting
In the short term, AI’s impacts on this value chain’s social and environmental performance may be mixed (SDGs 11, 12). AI-powered generative design could lead to more resource-efficient buildings, yet ethical concerns around bias in AI systems could exacerbate housing inequalities. Long-term, AI has immense potential for designing resilient, sustainable infrastructure aligned with climate targets (SDGs 9, 13) by optimizing energy use (7), reducing emissions (13), and utilizing recycled materials (12). However, job displacements could disproportionately impact vulnerable groups without reskilling initiatives (SDGs 8, 10). Proactive, multi-stakeholder governance addressing AI’s risks and inclusively leveraging its capabilities will be crucial for achieving the Sustainable Development Goals in the built environment.
Supply Chain Logistics
In the short term the positive impact on environmentally related goals (SDG 13 – Climate Action) is monumental. By using AI-powered solutions for transportation and route optimization (reduce empty miles) the fuel consumption can be drastically reduced and thus the greenhouse gas emissions. Warehouse automation and delivery optimizations also contribute to SDG 12 – Responsible Consumption and Production by reducing waste at every step. Longer term widespread adoption of AI in the industry is expected to contribute to a significant and lasting social and environmental impact. Automation of dangerous, labor-intensive, repetitive tasks will not only increase safety for the humans but also shift the worker skill sets by upskill and/or reskill(SDG 8 – Decent work and economic growth)
Conclusion
The integration of AI technology, particularly generative AI like ChatGPT, holds immense promise for revolutionizing professional services across Architecture Consulting, Higher Education, and Supply Chain Logistics. In the short term, AI promises significant efficiencies and productivity gains. In Architecture, it can optimize building designs for resource efficiency and sustainability, positively impacting sustainable infrastructure and climate action. In Higher Education, AI tools can enhance learning experiences and research output, improving access to quality education globally. In Supply Chain Logistics, AI-driven optimizations can reduce fuel consumption, emissions, and waste, aligning with responsible consumption and production. However, concerns about job displacement, bias, and ethical dilemmas must be addressed through inclusivity, reskilling initiatives, and responsible governance to harness AI’s full potential for sustainable development and equitable outcomes across professional services.s
References
- https://www.indeed.com/career-advice/career-development/what-are-professional-services ↩︎
- https://www.forbes.com/home-improvement/contractor/what-is-an-architect/ ↩︎
- https://www.oxfordlearnersdictionaries.com/us/definition/american_english/architect ↩︎
- https://www.wsj.com/articles/companies-are-seeking-real-world-supply-chain-gains-in-new-ai-tools-023045e7 ↩︎
