Next Gen PSF - Blog/News

New paper on  'How Professional Actions Connect and Protect' published

Posted by Tim Vorley, 27th July 2021

This week saw a new paper titled 'How Professional Actions Connect and Protect' published in the Journal of Professions and Organization.  The paper, authored by James Faulconbridge,  responds to the ongoing debate sparked by Mirko Noordegraaf’s intervention in suggesting that we are moving toward forms of ‘connective professionalism’. Critics in this debate have objected to Noordegraaf in a number of ways. Some object to a conflation of ideal types and empirical description. Others assert that Noordegraaf suggests a staged process of moving from protective to connective types of professionalism does not ring true; that we can finds forms of connection and protection in contemporary professionalism and in professional action. You can access the paper here.

New report on AI in Advanced Business Services

Posted by Tim Vorley, July 2021

This week Michiel van Meeteren and Tim Vorley participated in the Next Generation Services Global Scoping Workshop hosted by UKRI. At the workshop the team discussed their latest report exploring the integration of Artificial Intelligence (AI) across the the Advanced Business Services (ABS) sector co-authored with Francisco Trincado-Munoz and Tzameret H. Rubin. Over the past several years the ABS has seen the acceleration of AI, and its rapid evolution have arguably driven a digital transformation in businesses, with start-ups being powerful contributors force to such change. The report presentsan overview of the role of AI in digitally transforming the ABS, before examining transforming the insurance, legal and accountancy subsectors in more detail.   

In examining Artificial Intelligence in Advanced Business Services the report concludes that the diffusion of AI and related technologies indicate that they are becoming increasingly important to the future competitiveness and productivity of the sector. There is clear evidence of presence and proliferation of AI and related technologies, which we show through our analysis of industry technology spaces. The findings demonstrate that although companies can be separated by subsector, there is overlap between the integration of AI with insurance, accountancy and legal services. Currently AI related technologies are more deeply embedded and integrated in the domain of LegalTech, and comparatively less so in InsurTech and AccountTech. This suggest that the needs of different subsectors/technology spaces need different support in advancing the diffusion and adoption.  You can download the full version of the report here.

 The Power of AI for accountants

Posted by Sally Godson, July 2021

AI is not the future, it is happening now, and it can significantly improve the quality of business and investment decisions. At the ICAEW webinar held on July 1st 2021 the speakers explored the opportunities and the limitations that AI brings, the practicalities and how and where investment in AI could benefit accountants and auditors. The panel will unpick key phrases, explain them in practical terms and delve into how people are utilising AI today by sharing real case studies.  You view the presentation from the project below or watch the complete panel discussion  here.

 New paper on the Adoption of Innovation in the Classic Professions

Posted by Tim Vorley, April 2021

This week saw our latest paper titled 'An Institutional Taxonomy of Adoption of Innovation in the Classic Professions' accepted for publication in Technovation.  The paper, co-authored by Carlo Cordasco, Cristian Gherhes, Chay Brookes,and Tim Vorley, explores the process of adoption and diffusion of technical innovation in the professions. In this paper we suggest that the relevance and peculiarity of institutional dynamics at play in the professional sectors warrant a specific focus aimed at laying out how they affect adoption and diffusion of technical innovation. In particular, we highlight that cultural-cognitive and normative pillars, embedded in the classic or regulated professions, may significantly insulate professionals from efficient choice lenses and act as either drivers or barriers of adoption of technical innovations depending on the nature of the technology in question. We hypothesise that institutional mechanisms serve as drivers for the adoption of trajectorial innovations (i.e. technologies that improve existing sets of practices and routines), and as barriers for paradigmatic innovations (i.e. technologies that substantively alter existing practices and/or strip away certain tasks from the hands of professionals).  Finally, we illustrate the role that social norms play as transmission mechanism of cultural-cognitive and normative pressures. You can access the paper here.

NextGenPSF Final Flagship Conference

Posted by Tim Vorley, March 2021

Next  Generation Services White Paper

Posted by Tim Vorley, March 2021

The opportunities and challenges facing mid-sized professional services firms  are highlighted in this infographic.  Mid-sized firms stand to gain significant benefits in terms of productivity, efficiency and innovation from new technologies, yet often lack the scale and resources to invest in the kinds of R&D or organisational change and development projects needed to realise their potential. Innovation is needed to sustain – if not transform – their businesses. Evidence for this comes from weekly polls of leaders of mid-sized firms, conducted by study partners the Managing Partners’ Forum. 

Towards AI Readiness in Law and Accountancy Firms

Posted by Tim Vorley, March 2021

Understanding how AI and Data Analytics are shaping Accountancy and Audit.

Posted by Zoe Hunter, March 2021

Base of insights from the NextGenPSF project Professor Tim Vorley speaks with the Institute of Chartered Accountants in England and Wales (ICAEW) about how AI and data analytics is changing the accounting profession and the need to think more about what this means for the culture and operations of the business. This video forms part of a series from the ICAEW to engage and inform their members about the transformative potential of the technology. If you are interested to understand more about how the tools and resources designed and developed by the Nest GenPSF team can support your business in developing your business models and exploring innovation opportunities through design sprints please get in touch via info@nextgenpsf.co.uk.

Using 2030 Scenarios to Explore Futures for Professional Services Firms.

Posted by Lucy Kimbell, February 2021

NexGenPSF team on the Managing Partners' Forum Podcast.

Posted by Zoe Hunter, February 2021

In advance of the NextGenPSF project final conference in March 2021, Professor Tim Vorley speaks about the opportunity for professional services firms to re-tune their business models and explore innovation through design sprints. The project team has worked with a range of law and accountancy firms to facilitate design sprints, and in this webinar Tim  shares insights and reflections from the projects.  To hear more you can listen again to the webinar.

The role of incubator in developing NextGenPSF tech.

Posted by Tim Vorley, October 2020

Business incubation has become central to the development and implementation of next generation technology. Whilst the benefits of incubation have been well-established in other sectors and are vital parts of the entrepreneurial ecosystem, the integration of incubation and accelerator programmes within professional services such as law and accountancy is embryonic. As part of the UKRI Next Generation Services project, we are addressing how the nature of incubation within professional services is driving innovation and consider how this business process is viewed both by incubators and start-up firms.

A webinar featuring incubators and accelerator programmes from across Asia, Europe and North America has explored this issue. Incubators range from government sponsored programmes, in-house corporate accelerators and legal sector-specific initiatives. The webinar discussion identifies the necessity to support value-adding ideas for future technological adoption.

Accelerators and incubators themselves provide access for start-ups and small companies to influential networks of stakeholders, expert advice on business model development, and direct support for the research and development of new products and services. The drivers for incubation are individuals within professional service firms who are implementing change and innovation. The webinar hears from an incubator in Canada who have created an environment that works with consumers to develop innovative solutions, as well as incubators from Finland, Austria and Singapore who refer to the broad range of social issues and commercial challenges which incubators and accelerators can address in agile ways.

“The important thing here is that we're very focused on both people and businesses. And it's all about the consumer. So, we don't use the word clients. Consumers can be big law firms, consumers can be large corporations, or it could be individuals, and so we're really focused on all of those areas. We achieve those goals in three main ways, incubation, supporting innovation agendas and designing the 21st century justice system”

The experiences of business incubation shared on the webinar illustrates how a sustained focus on new ideas, often previously stymied due to the ‘fail fast adage’, extend far beyond brand perception or tokenistic initiatives. There are dedicated people and resources which are driving new technical solutions in the legal sector across countless jurisdictions. For incubators working with national legal infrastructures, these relationships support national efforts to promote innovation. For others, it was the challenge of reconfiguring and modernising the justice system through frontier technologies with the potential to unlock new ways of working and creating value.

“Austria is not the biggest country probably in the world. And it's usually not the most innovative in terms of legally. But in terms of legal tech, we're pretty advanced over the last five years. Austria, because it's very small country, has really tried to push the boundaries. One thing is that our justice service over the last 20/30 years has been quite innovative. So, we already work with the justice system, and there's a lot of the court digital, and we found it over the last 25 years”.

The potential for incubation in the legal landscape has been underexplored and undervalued. The participants in the webinar demonstrated that innovation champions are working to develop entrepreneurial ambition and shaping the future of the sector. As the challenge of the pandemic and new ways of working unfold, the ability to work with technology will become critical. Our research will continue to focus on these challenges and if you would like to find out more about the incubation in the legal services programme of research, please contact Professor Tim Vorley, Dr Jorge Martins, Dr Paul Taylor, or Dr Chay Brooks for further information.

Derisking Conveyancing : An NGS Design Sprint

Posted by Lucy Kimbell, September 2020

This week the Next Gen PSF team worked with CILEx Regulation, the Solicitors Regulatory Authority and  the CLC to use our design sprint format to examine how to augment the conveyancing process through share technology solutions. The design sprint sought to identify blockages or issues that reduce the efficiency, effectiveness or negatively impact on the client experience, and identify how there is scope to derisk the conveyancing through use of  AI and other advanced technologies. : Design Sprint Workshop

While HM Land Registry is moving to e-conveyancing, and there are other digital innovations in the market addressing aspects of conveyancing, the design sprint worked with a range of stakeholders to think through the problems and opportunities that have not yet been addressed. The Next Gen PSF team facilitated the event to enable effective collaboration, by allowing participants to share their knowledge and experience about where the issues and opportunities are in the current conveyancing process as well as the opportunities to use AI.

On the back of the workshop Cilex Regulation and the SRA have used the report summarising the outcome of the design spront as a resource to progress collective interests. Also following the design sprint Professor Tim Vorley presented the outcomes to the  ‘Home Buying and Selling Group’ (HBSG), which is an active body of 100+ conveyancing stakeholders.

NexGenPSF team on the Bak Up Podcast

Posted by Cristian Gherhes, June 2020

The research of the Next Gen PSF project has come a long way, uncovering a range of challenges and opportunities for AI adoption in legal and accounting services and supporting numerous firms in their technology adoption journey. In this podcast, Cristian shares insights from the projects and talks about the future of AI in professional services.  To hear more about the pressures and challenges of digital transformation and the implications of AI for the business models of PSFs, listen to the podcast below.

Future of the NextGenPSF Firm

Posted by Martin Spring, June 2020

Something I’ve been concerned with for most of my academic career is what is known in the trade (my trade) as the boundaries of the firm. What do we do ourselves, and what do we leave to someone else? And how do we connect the one to the other? This is fascinating – I think – in many ways, not least because it is a never-ending story: various factors such as changing technology, availability of new sources of supply, and changing market demands mean that a solution to this problem that makes sense now may be crazy in five years’ time. When the Ford Motor Company began the mass production of cars, they famously did everything from growing the timber for the wheel spokes to selling the car. Now, the major auto companies focus on development, assembly, and producing a few key components, outsourcing everything else. 

What’s this got to do with artificial intelligence in professional service firms? Well, one thing our research has revealed is the wide variety of ways in which engaging with AI-driven solutions potentially disrupts the boundaries of the PSF. And responding appropriately to these disruptions is critical for firm competitiveness. 

Traditionally, PSFs carried out most of the work themselves, through a judicious mix of senior and junior professionals and associates. With the rise in offshoring in the early 2000s, it became increasingly attractive to outsource what economic geographer Michael Storper called ‘routinised intellectual labour’ – preparation of standard documents, document searches etc - to specialist, low-cost providers in locations such as India, or even to the lower-cost locations within the UK (so-called ‘north-shoring’ - implicitly from higher cost bases in London). Now, as AI solutions operated within the firm can potentially take over some of the routinized tasks, this work can be brought back inside the firm. The economic logic of outsourcing has changed. And this doesn’t just mean that a lower-cost solution is achieved: since every additional division of labour creates an additional need for coordination, bringing everything under one roof also allows quicker, more agile and responsive service, potentially making it possible to win business on the basis of quicker delivery, more customised service, and more direct control over quality.

The potential of AI-driven solutions to complete higher-volume, standardised tasks can alter the boundary with the customer, as well as with erstwhile subcontractors. In circumstances where the PSF is handling large numbers of similar small tasks, AI solutions can be developed not just to complete the repetitive tasks, but also to allow the client to self-serve. The professional expertise and process is embodied in the AI solution, which is sold as part of a service package. This time it is the client who has the benefit of having everything on tap under one roof. Often, this leaves the PSF able to concentrate, in its relationship with the client, on more complex, strategic, profitable and satisfying work. 

The disruptive potential of AI-driven solutions on the boundaries of firms is not just a matter of slicing up the same old activities in different ways, by virtue of changing the relative costs of different arrangements as to who does what. It also entails generating entirely new activities, which arise from the analytical potential of the technology. Analysing vast numbers of documents very quickly and relatively cheaply, or conducting 100% audits rather than audits based on small samples of transactions can lead to new insights and new service offerings of an advisory nature that would be out of the question without AI. The boundaries of the PSF then contain new capabilities to offer new propositions and new sources of competitive advantage. A significant challenge here is to work out how to manage the boundary with the customer in respect of these new activities: who does what? Whom do we speak to? How do we charge for this? As ever, new boundaries create new coordination challenges. 

Another aspect of the traditional view of PSFs is that they are not very capital intensive. Although we are not at the stage yet where PSFs are as capital intensive as car factories or chemical plants, the mix is changing, as information technology in general, and AI solutions in particular, play a more significant role. This means that we need to consider the boundary related to technology development and provision, as well as those associated with delivering the core professional service. A crude framing of the question is ‘make-or-buy’: ‘Do we the develop technology ourselves or buy it?’ But the reality is much more complex and nuanced. We have found that PSFs very rarely simply buy AI solutions off the shelf and use them ‘out of the box’. Since the market for such solutions is relatively immature, there often isn’t a product ‘out there’ that will simply do what the PSF needs. Instead, there are myriad start-ups and more established vendors who are often glad to work with enterprising PSFs to co-develop bespoke solutions, using the PSF’s data and experience in the provision of the core professional service to hone the AI solution to be more useful in the real world. This means that the boundary with the external firm is not a simple one based on a contract for software as a service and a payment for so many user licences, but a rich and evolving collaborative relationship, where ‘who does what’ is, to some extent, worked out as the relationship develops. And enterprising PSFs are happy to have the edge on their competitors for a couple of years due to the distinctive capabilities of the AI solution, often with the use of the AI solution provided free of charge or at a much-reduced fee, in recognition of their part in its development.

Of course, the development ‘make-or-buy’ decision is mutually dependent on the mix of skills inside the PSF. If you have no technological skills, you have to buy solutions in. But buying in even relatively mature technologies typically requires some in-house adaptation and customisation. So the modern PSF probably cannot afford to have zero technology capabilities in house. The question is rather how much, of what type, performed in which job role. Lawyers who code? Technology specialists with professional backgrounds? Technology-capable people who are business process experts? Full-on data-scientists? These questions certainly arise, but are probably best discussed in more depth on another occasion. 

While the priority has been in adapting to the new normal, evidence has shown that there is an increased appetite for and engagement with technology. Ensuring that firms realise and leverage the advantages effectively adopting and implementing technologies to enable and augment new ways of working can be challenging. However, where successful such technologies may represent the first steps in the wider transformation of the firm.

Navigating this process requires understanding the value of data and potential technologies, such as artificial intelligence, to the future of Professional Services Firms. AI for Services, in partnership with the Next Generation Services project team, are offering an exciting and informative lunchtime programme focused on the organisational and operational opportunities and challenges associated with becoming AI ready.

Register here to join our series of weekly webinars delivered by leading academics and professionals drawing on their experience from across the professional services. As well as sharing their own perspectives and experiences on the opportunities and challenges facing the future of professional services firms, there will be an opportunity for questions and discussion about how technology is changing the way we work, and how this will continue in a post Covid-19 world.

What to expect

Grab a drink and a sandwich and join our one-hour online Thursday webinars to hear expert insights and stimulating debate by joining the AI for Services community. Each webinar will include presentations from thought leaders, followed by an interactive Q&A session.

Design Sprint @ Work Foundation 

Posted by  Tim Vorley, Cristian Gherhes & Carlo Cordasco, October 2019

The first of a series of design sprints with legal services and accounting firms took place on Wednesday at the Work Foundation in London. The design sprints are structured workshops which allow the participants to engage with and explore future scenarios that involve AI in future professional services as well opportunities to rethink and innovate existing business models.

Based on a design thinking approach, the sprints are highly interactive and collaborative exercises that allow professionals working in legal services and accounting to reimagine their value propositions and increase their AI readiness. The sprints encouraged the participants to consider three scenarios that could reshape the legal services and accounting landscape by 2030 and to map out potential tools to embrace technological innovation. The aim of the sprints is to consider the barriers and opportunities to the adoption of AI in the respective sectors and to encourage proactive strategic thinking towards future horizons. 

 The first session at the Work Foundation involved 6 firms who engaged in workshops exploring a series of targeted topics through guided activities and group discussion. These included sessions that enabled the participants to map out and reflect on their firms’ existing business models, consider the need for, challenges and opportunities of business model innovation to support the adoption of AI-based technologies, immerse themselves into future potential scenarios involving AI and consider how these may impact or reshape their current activities, reimagine service delivery and discuss the future of professional services.

The participants had the opportunity to reflect on the design sprint activities and highlighted the key insights that they gained by participating in the workshop. These included “the tech is not a barrier but an enabler”, “we need to consider the implications of AI for our current business model and adapt”, “the main barriers to the adoption and implementation of AI solutions are cultural”, “we need to get buy in at the leadership level”, “all our barriers would be about the business model; this is what holds us back”, and “there is still a lack of understanding of what AI is and means for professional services”. Becky Shields, attending on behalf of Moore Kingston Smith, reflected on a successful first sprint: “Participating in the design sprint was a very good way of framing a problem, breaking it down and then building it back up and articulating solutions.”

The design sprints will continue in 2020 engaging with firms and professionals from the legal and accountancy sectors. If you are interested in finding out more, or want to have your firm participate in one of the sessions facilitated by the Next Generation PSF project team, contact us at info@nextgenpsf.co.uk.

NGS Landscape Report

Posted by  Tim Vorley, October 2019

Tim Vorley provided an overview of the NextGenPSF project (see the above video), alongside John Armour (University of Oxford) and Alistair Milne (Loughborough University). The presentations highligted clear links across the projects relating to the blurring of boundaries at the frontiers of the professions, as well as emphasising the importance of business models and business model innovation. Critically for the NextGenPSF project we regognised that the threat to mid-tier legal and accounting firms comes from above (i.e. the inverstment of the Big 4 and Magic Circle) as well as below (i.e. the start-ups disrupting through accounting, audit and legal-tech).

Another important outcome from the day was the emphasis on data. While frequently referred to as the new oil, it is imperative that the critical and value added of the refining process not be overlooked. Jeni Tennison (CEO, Open Data Institute) raised the importance of data as infrastructure and the need to ensure that the appropriate institutions are in place to ensure the future competitiveness of data intensive business and sectors. This challenge will be addressed directly by the NextGenPSF project.

The other 2 projects funded were: 

Professor Milne’s research will explore the implications for the insurance industry of this wave of new digital technologies, with the support of many of the UK’s leading insurance companies. They will identify and map the range of opportunities for AI based innovation in business processes and business models, across underwriting and risk analytics, claims processing and customer engagement. They will examine, through engagement with industry on business opportunities and challenges and through a range of case studies, the barriers to adoption and the enablers of change.

Professor Armour’s research will look into the use of AI in the legal system. His research seeks to identify how constraints on the implementation of AI in legal services can be relaxed to unlock its potential for good. As well as governing economic order, the legal system is more fundamentally a structure for social order. As a result the stakes for AI’s implementation in UK legal services are high. If mishandled, it could threaten both economic success and governance more generally.