Deloitte Revenue Growth Slows to 3.8% as Tech Consulting Weakens
Updated
Updated · Financial Times · Sep 24
Deloitte Revenue Growth Slows to 3.8% as Tech Consulting Weakens
1 articles · Updated · Financial Times · Sep 24
Summary
$74.5 billion in annual revenue marked a record for Deloitte, but constant-currency growth slowed to 3.8% in the year to May 31 from 4.8% a year earlier.
Tech and transformation consulting — Deloitte’s largest business unit — grew just 2.5%, down from 4.7%, while advisory growth eased to 4.4% from 5.5%, dragging on overall expansion.
Audit and tax both accelerated and outpaced consulting, while Deloitte still expanded headcount to nearly 500,000 from about 470,000 over the past year.
The firm said it will keep investing in AI and technology, including a $3 billion commitment through 2030, even as the consulting sector faces doubts over how quickly AI work will translate into growth.
If AI automates traditional advisory tasks, how will consulting giants survive the inevitable shift from billable hours to output-based pricing?
With major firms facing backlash over AI hallucinations, can billion-dollar investments in tech governance truly restore trust in automated professional services?