Big Four lag behind smaller firms in AI adoption, says ex-EY chair
Former EY UK chair Hywel Ball highlights the challenges the Big Four face in adopting AI, suggesting that smaller, more agile firms are leading the way in AI integration.
Hywel Ball, the former UK chair of EY, has highlighted the significant challenges the Big Four accounting firms face in adopting artificial intelligence, despite their vast resources and investments in the technology.
Ball, who is set to take on board roles at two AI-focused start-ups, said that smaller, boutique firms are better positioned to incorporate AI into their operations, giving them a competitive edge.
These smaller firms can integrate AI more easily without the barriers faced by larger organisations, which often struggle with the cultural change needed to implement such technologies across vast teams and business units.
“If you’re really big, there are lots of challenges about driving that extent of cultural change,” Ball said. “
The Big Four are spending a lot of money on AI, and they’ve got the resources and investment to do it, but they’ll have their own challenges for adoption, because they’re so big.”
While the Big Four have been investing heavily in AI, Ball pointed out that, despite this, only 34% of senior leaders have fully implemented agentic AI systems.
In contrast, smaller companies with more agile structures are better equipped to drive AI adoption. This mismatch between investment and execution creates an opportunity for mid-sized firms to capitalise on their ability to move quickly, according to Ball.
Ball’s comments come as professional services firms wrestle with the growing integration of AI, which is reshaping business models and workflows. He noted that AI presents both opportunities and risks, particularly as it has the potential to disrupt employment.
While AI-driven job losses are expected in the short term, Ball believes that new roles will emerge as businesses learn to leverage the technology.
“You’ll go through a curve [of job losses and new hires] as people get to understand this new technology and how it can be used,” he said.
In addition to his work with EY, Ball is taking on roles at two start-ups: IntellixCore, which provides AI solutions for professional services and private equity portfolio companies, and Quantum Rise, an AI consulting firm based in Chicago.
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Ball believes that these firms are uniquely positioned to address the challenges of AI adoption in professional services.
The former EY executive also expressed concerns over the UK’s ability to compete with global AI giants such as Meta and OpenAI.
“The UK needs to focus on AI adoption rather than trying to compete with the likes of Meta and OpenAI,” he said. “We should focus on how AI can be used to benefit industries like accounting, consulting, and public sector services.”
Ball also emphasised the need for professional services firms to adopt AI themselves in order to lead by example.
“Physician, heal thyself. If you’re an accounting, consulting, or professional services firm and you’re not doing the AI adoption yourself, it’s pretty tricky to go and tell someone else that this is really important,” he stated.
