-
53% say poor resourcing decisions regularly reduce project margins
-
55% miss, delay or turn down client work because of capacity constraints
-
Just 14% have embedded AI across all resource operations
A lack of staff capacity and poor resourcing decisions are regularly reducing margins and revenue at more than half of professional services firms, according to new research from Dayshape in its new report Professional services: Navigating a new operating era.
The study of 400 senior leaders at professional services firms in the UK and US found that over half (53%) are seeing project margins affected by staff availability and skills matching. Capacity constraints are also making it harder for firms to deliver growth, with 55% missing, delaying or turning down client work as a result.
The findings come as firms look to AI to create capacity and support growth, without relying solely on increasing headcount. AI for internal operations is now a strategic priority for 41% of firms, while 38% are prioritising its use in client delivery.
This investment is already producing results. Among organisations using AI in resource operations, 69% say it has improved planning and forecasting accuracy, while 66% report greater efficiency and reduced manual effort.
However, just 14% have embedded AI across all resource operations. Dayshape says this exposes a gap between firms’ investment and ambition around AI and the operational reality of delivering profitable growth.
The research indicates that the next phase of AI adoption will be less about introducing more tools and more about embedding intelligence into everyday operational decisions. As professional services delivery becomes increasingly complex, firms will need to coordinate people, technology and different sources of capacity more precisely if they are to grow without putting margins at risk.
Matt Cockett, CEO of Dayshape, said
“Firms do not have a shortage of growth ambition. The challenge is turning demand into profitable delivery.
“AI is already helping firms plan more accurately and work more efficiently, but isolated tools will not change how the business performs. The real value comes when AI is embedded into the decisions that determine what work a firm can accept, who should deliver it and whether it will be profitable. Successful firms will be those who can coordinate every source of capacity more intelligently and act before problems affect clients or margins.”
The findings are published in Dayshape’s new report, Professional services: Navigating a new operating era which explores how leading firms are building the next generation operating model, and how AI is changing the economics of growth across professional services.
The report was launched at Elevate, Dayshape’s annual resource management conference.
Please follow and like us:
Be First to Comment