GenAI in Professional Services: Key Insights from the Thomson Reuters 2024 Report

Generative AI (GenAI) is no longer a concept of the future—it’s here, and it’s making waves across professional services. From legal firms to government agencies, this technology is poised to transform how work is done. But, as Thomson Reuters’ “2024 Generative AI in Professional Services” report reveals, the road to widespread adoption is both exciting and fraught with challenges. Let’s dive into the highlights and what they mean for the future.

The Bright Side: Boosting Efficiency and Driving Innovation

If there’s one thing GenAI promises, it’s efficiency. According to the report, 81% of professionals believe GenAI can be applied to their work, while 54% think it should be. Why? Because it can handle time-consuming tasks like legal research, drafting documents, and analysing data in a fraction of the time.

Take the legal industry, for example. A staggering 88% of corporate legal professionals see contract drafting as an ideal use case for GenAI. In the tax sector, 69% believe GenAI could revolutionise tax return preparation. These applications free up valuable time, allowing professionals to focus on higher-value tasks—like solving complex problems or strategising for clients.

But it’s not just about speed. GenAI is opening doors to innovation. Legal firms see it as a way to make justice more accessible by reducing costs. Risk managers believe it can detect fraud and improve compliance better than traditional tools. As one corporate tax director put it, “GenAI will weed out inefficiencies far more effectively than current methods.”

What's stopping professional services from adopting GenAI?

Respondents hesitant about using GenAI in their work identified several key concerns and barriers to its adoption:

• Data Privacy: Ensuring sensitive client information is secure. More than 68% of respondents flagged data security and 62% raised privacy and confidentiality as primary concerns.
• Accuracy and Hallucination: Avoiding incorrect or fabricated outputs, is a key issue for 70% of respondents.
• Regulatory Compliance: Navigating legal frameworks that differ across regions, highlighted by 60% of respondents as a top concern.
• Ethical Usage: Ensuring ethical and responsible AI usage, was noted by 57% of respondents as an important challenge.

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Real-World Applications: Tailored Solutions for Every Industry

The versatility of GenAI is one of its greatest strengths. Here’s how it’s being applied across industries:

• Legal: From drafting briefs to document review, GenAI is reshaping workflows. It’s also likely to disrupt traditional billing models.
• Tax and Accounting: Professionals are using GenAI to handle bookkeeping, tax preparation, and compliance. Interestingly, 40% of tax firms expect it to increase their rates, highlighting its value to clients.
• Risk Management: GenAI shines in analysing large datasets for fraud detection and risk assessment. It’s no wonder this sector leads in adoption, with 30% of organisations actively using or planning to use GenAI.
• Government: Applications include legal research and summarising lengthy documents. However, concerns about ethics and over-reliance are slowing adoption here.

The Perception Gap: ‘Can’ vs. ‘Should’

One of the most intriguing insights from the report is the gap between those who think GenAI can be applied to their work (81%) and those who believe it should (54%). This difference highlights a mix of optimism and caution. While corporate legal and tax professionals are enthusiastic, government agencies remain sceptical, reflecting the diverse challenges and expectations across industries.

What Needs to Change? A Practical Path Forward

To truly unlock GenAI’s potential, organisations must address some critical challenges:

1. Build Trust: Focus on improving the accuracy and reliability of AI tools while maintaining human oversight.
2. Prioritise Ethics: Establish clear guidelines for responsible AI use. Alarmingly, only 12% of organisations currently have policies tailored to GenAI.
3. Secure Data: Robust data protection measures are non-negotiable, especially in industries handling sensitive information.
4. Invest in Training: Equip employees with the skills they need to use GenAI effectively and responsibly.

Embracing the GenAI Revolution

The Thomson Reuters report paints a clear picture: GenAI is here to stay, and its potential is enormous. While challenges like accuracy, ethics, and adoption hesitancy persist, the opportunities for innovation and efficiency are too significant to ignore.

The key is balance. GenAI isn’t about replacing professionals but empowering them to work smarter. By tackling the challenges head-on and embracing their possibilities, professional services can navigate this transformative era and emerge stronger, more efficient, and more innovative.

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