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ProTRENDS® ACTIONS INSIGHTS DATAPublished October 2026 ARCHITECTING THE OBELISK Professional Services in the AI Era Discover how pioneering firms are breaking free from legacy pyramid bottlenecks, integrating agentic AI and re-architecting their operations for sustainable growth and higher profitability. Discover how pioneering firms are breaking free from legacy pyramid bottlenecks, integrating agentic AI and re-architecting their operations for sustainable growth and higher profitability.
© 2026 ProTRENDS® - Part of The AIR Network® -2-The ProTRENDS Reports are a trusted resource for accounting firms seeking to gain market insight, strengthen competitive advantage, identify scalable growth opportunities and enhance operational efficiency. Each report is built on comprehensive source analysis and disciplined interpretation, ensuring clarity, credibility and practical relevance for firm leaders navigating an evolving professional landscape. About ProTRENDS® ProTRENDS is the trusted research platform providing unparalleled actions, insights and data across the accounting profession. It exists to empower the profession and its leaders to be their best through trusted market intelligence, unparalleled data and human ingenuity. By combining rigorous data analysis with practitioner understanding, ProTRENDS transforms complex market activity into structured insight that informs strategic decision-making. ProTRENDS® Reports Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -3-Executive Summary The accountancy profession is undergoing an existential structural transformation, shifting from legacy pyramid models - which are no longer capable of scaling in the current market - to experience-dense, AI-integrated architectures. This report analyses the economic and operational drivers of this transition, situating it within the broader evolution of professional services. The profession is currently caught in a growth paradox. Whilst 73% of firms report ambitious growth plans, 73% are simultaneously forced to turn away work because they lack the capacity to service it. The traditional pyramid, which relies on expansive human headcount to deliver compliance and research, has become a rigid bottleneck rather than a growth engine. As recruitment challenges continue to slow expansion for 71% of firms, the shift toward obelisk and diamond structures, characterised by smaller, senior-heavy teams and AI-driven leverage, is no longer an optional efficiency play; it is a strategic survival mechanism. Architecting the Obelisk: Professional Services in the AI Era Automating the tasks of the junior layer through agentic systems, thereby pre-compressing the traditional pyramid. Migrating the roles of junior staff to offshore outsourced service delivery centres (now utilised by 24% of firms), effectively hollowing out the local office to create lean, senior-led advisory hubs. Technological Leverage (AI) Operational Leverage (Global Service Delivery) This report details how leading firms are addressing this crisis through a dual-lever strategy: The findings suggest a bifurcated future: legacy pyramidal elements will persist where regulatory compliance demands human-led assurance, while obelisk and diamond structures will dominate advisory workflows. This transition has profound talent implications with 74% of firms concerned that sustained workloads are driving staff out. We define the necessary evolution of roles: moving from legacy juniors (manual labourers in a failing apprenticeship pipeline) to AI facilitators (tech-enabled professionals focused on orchestration and governance).
© 2026 ProTRENDS® - Part of The AIR Network® -4-Architecting the Obelisk: Professional Services in the AI Era Throughout this report, we distinguish between two critical entry-level roles: Legacy Juniors These are professionals in traditional, manual labour-intensive roles that are currently being automated AI Facilitators The new, tech-enabled entry-level professional whose role focuses on orchestrating agentic AI, prompt engineering and workflow design. This distinction is vital to understanding the shift from labour-leverage to technology-leverage. Note on Terminology This report provides a critical framework for leaders to plan for structural dominance over the next decade by decoupling revenue growth from headcount dependency ensuring that the firm of the future is defined not by the size of its pyramid but by the skill of its architects. While the shift toward AI leverage addresses pressing capacity constraints, leaders must navigate an essential human question: How can AI be deployed to elevate work and enrich careers, rather than merely reduce headcount? As burnout threatens staff retention across 74% of practices, the adoption of AI must balance economic mechanics with the social dimensions of ESG, employer brand integrity and professional wellbeing. This human and emotional imperative must sit alongside technological advancement in the profession’s vision for the future by enriching careers, improving the quality of work, supporting professional wellbeing and upholding wider social and ESG responsibilities.
© 2026 ProTRENDS® - Part of The AIR Network® -5-Contents Architecting the Obelisk: Professional Services in the AI Era Executive Summary 1. Foundations: From Pyramid to Obelisk 1.1 The Professional Services Pyramid: Origins and Economic Logic 1.2 The Consulting Obelisk: Tall, Narrow, AI-Augmented Structures 1.3 Conditions for Pyramid and Obelisk Success and Failure 1.4 Operational Leveraging and Global Service Delivery 1.5 Forces Destabilising the Pyramid 2.1 Structural Differences Between Consulting and Accounting 2.2 Big Four AI Platforms and Agentic Strategies 2.3 Regulatory Guidance: FRC and PCAOB 2.4 Compression of Junior Layers and Hiring Shifts 2.5 Obelisk in Audit versus Advisory Practices 2.6 Mid-Tier Firms: RSM, BDO, Grant Thornton and Others 2.7 Regulatory, Talent and Cultural Constraints in Accountancy 2. Accountancy Firms as the Primary Lens 3. Alternative and Emerging Structures 3.1 Diamond Structures in Professional Services 3.2 Pod Structures and Agile Team Models 3.3 Network and Platform Models 3.4 Holacracy-Inspired and Self-Managing Structures 3.5 Viability Assessment in Accountancy Profession 3.6 Comparing the Models' Impact on Profit Margins and P&L 4. Who Is Using What - Real Examples 4.1 Consulting Obelisks and AI-Native Boutiques 4.2 Accounting and Audit: Big Four and Mid-Tier Examples 4.3 Platform and Network Examples Beyond Accounting 4.4 The Capital Engine: How Private Equity Drives Structural Evolution 5. Pros and Cons Analysis: Pyramid, Obelisk, Diamond and Network/Platform 5.1 Comparative Table 5.2 Sharp Trade-Offs and Strategic Choices 6. The AI Factor: Technology as Structural Driver 6.1 Decomposition of Junior Tasks and AI Automation 6.2 Agentic AI: Orchestration and Confidence Frameworks 6.3 Shifts in Compensation, Metrics and Value Models 6.4 Governance and Ethical Accountability 3 8 9 12 13 15 7 16 16 18 20 21 22 22 16 24 25 27 29 31 32 34 37 37 38 39 39 43 43 44 45 45 46 46 47
© 2026 ProTRENDS® - Part of The AIR Network® -6-Contents Architecting the Obelisk: Professional Services in the AI Era 7. Client and Talent Implications 7.1 Client Perspective: Segmented Views 7.2 Talent Perspective: Role and Stage-Specific Implications 7.3 The Human and Social Imperative: Beyond Efficiency to Career Enrichment 8. Additional Perspectives and Emerging Questions 8.1 Firm Leadership: Governance and Partnership Viability 8.2 Mid-Level Professionals: Career Path Uncertainty 8.3 Investors and Private Equity: Valuation and Margin Defensibility 8.4 Vendors and Technology Providers: Procurement Opportunities and Risks 8.5 Structural Tensions and Contradictions 8.6 The Future of the Partnership Equity Model 8.7 Regulatory Perspectives on Structural Evolution: The FRC, PCAOB and Beyond 9. Outlook and Strategic Implications 9.1 Structural Durability and Scenarios (5–10 Years) 9.2 Strategic Imperatives for Key Audiences 9.3 Transition and Change Management Roadmap 10. Conclusion: The Death of the Pyramid and the Architect’s Ascendance APPENDIX: Sources 10.1 The Verdict: Bifurcation, Not Uniformity 10.2 Why This is a "Good" Thing 10.3 The Final Mandate 49 49 51 53 53 54 54 55 55 56 57 59 59 59 60 61 61 62 62 63 64 48 65 The AIR Network Who’s Behind The AIR Network?
© 2026 ProTRENDS® - Part of The AIR Network® -7-Architecting the Obelisk: Professional Services in the AI Era 1. Structural Foundations: From Pyramid to Obelisk 1.1 The Professional Services Pyramid: Origins and Economic LogicThe Traditional Accountancy Pyramid A Model of Leveraged ExpertiseApexFocus in senior-level client relationships, high-level sign-offs and generating high billable rates. MiddleManagers and Senior AssociatesAct as the review layer, managing deadlines and ensuring all work meets compliance standards.Bottom Wide BaseJunior Staff and TraineesExecute labour intensive tasks like audit tests, reconciliations and basic tax preparations.Partners and Equity OwnersThe Economic Model of LeveragePartner profits are amplified by using many juniors whose billable hours significantly exceed their salaries.Firm margins are driven by the spread between blended client rates and lower staff costs.High Leverage RatiosThe Profit Margin SpreadExample of Financial Value in GBPManager fully loaded costJunior fully loaded costTotal Annual Collected Fees£180,000£70,000£3,200,000Figure 1.1: The Traditional Professional Services Pyramid
© 2026 ProTRENDS® - Part of The AIR Network® -8-Architecting the Obelisk: Professional Services in the AI Era1.1.1 Historical RootsThe pyramid became the dominant organisational form in professional services during the post‐war expansion of management consulting, public accounting and corporate law. At its core, it is a model of leveraged expertise:The Apex (Partners & Equity Owners) A small group at the top who sell compliance packages, sign off on statements, maintain key client executive relationships and command high billable rates.The Middle Tier (Managers & Senior Associates) A layer of mid-level professionals whose role is to review the work of juniors, manage client deadlines and check compliance.The Wide Base (Juniors & Trainees) Large cohorts of entry-level staff and trainees who perform the labour-intensive ‘grunt work,’ such as manual audit testing, reconciliations, invoice processing and basic tax preparation.In consulting, firms like McKinsey, Boston Consulting Group and Bain codified this model in the second half of the twentieth century, using large teams of MBAs to conduct research, modelling and analysis under partner oversight. In accounting, Big Eight, Big Six predecessors of today’s Big Four deployed armies of trainees to perform manual audit tests, reconciliations and documentation work.1.1.2 Economic Mechanics of the PyramidThe entire structure relies on a leverage model. The pyramid’s economics rest on three interlocking levers:High ratios of juniors to partners* amplify partner profits. Each partner’s book of business is delivered by many juniors whose billable hours significantly exceed their salaries. Partners sell work at rates reflecting senior expertise; juniors deliver much of the volume at lower rates. The firm’s margin sits in the spread between clients’ blended rates and staff costs. Firms target high utilisation (percentage of time billed) and strong realisation (percentage of billed work actually collected). Pyramid structures allow firms to flex staffing and pricing to maximise these metrics. Leverage Ratios Rate Differentials Utilisation and Realisation*often 8–12 juniors per partner in consulting; substantial trainee layers in audit.
© 2026 ProTRENDS® - Part of The AIR Network® -9-Architecting the Obelisk: Professional Services in the AI EraTwo Managers£180,000 eachJunior£70,000Junior£70,000Junior£70,000Junior£70,000Junior£70,000Junior£70,000Junior£70,000Junior£70,000 Assume average blended billable rates and utilisation yield £3.2 million in collected fees from these staff, against salary and overhead costs of approximately £1.5 million. The residual margin contributes to partner profit share, overhead and investment. The pyramid’s value lies in the ability to scale this structure across many partners. A consulting practice where a partner generates engagements worth £4 million per year. An example illustrates the logic. Talent models and professional identity were built around this economic core: Large graduate intake cohorts, structured apprenticeships, up‐or‐out promotion pathways Early careers dominated by repetitive work: research, testing, modelling, documentation Culture emphasising long hours, intense client delivery and competition for promotion 1.1.3 Talent Model and Identity In accounting, professional bodies reinforced these models through qualification structures (ACA, ACCA, CPA) and competency frameworks that assumed apprentices would learn through manual work under supervision. 1.2 The Consulting Obelisk: Tall, Narrow, AI‐Augmented Structures AI compresses the traditional wide pyramid into a tall, narrow obelisk, shifting from a massive junior headcount to integrated platforms, technical orchestration and premium senior judgement.
© 2026 ProTRENDS® - Part of The AIR Network® -10-Architecting the Obelisk: Professional Services in the AI EraFocused on long-term relationships, regulatory liaison and overseeing firm-wide AI governance Lead projects, orchestrate AI- human workflows and interpret AI outputs with professional judgement. Early career professionals who manage AI tools, data pipelines and technical workflow design. Engagement costs fall as LLMs perform multi-week research and documentation tasks in hours. Client Leaders and Partners Engagement Architects AI Facilitators Leaner Engagement Teams Leverage has shifted from massive junior headcount to AI platforms, driving margins through AI efficiency and premium senior expertise.Profitability is driven by AI efficiency and premium pricing for deep senior-led expertise.Efficiency Driven MarginsLeverage moves from supervising junior labour to orchestrating hundreds of automated agentic tasks.Human to AI LeverageFigure 1.2: The Consulting Obelisk
© 2026 ProTRENDS® - Part of The AIR Network® -11-Architecting the Obelisk: Professional Services in the AI Era*often 8–12 juniors per partner in consulting; substantial trainee layers in audit. 1.2.1 Obelisk Definition and Roles Professional Services firms (such as Accountancy firms) are proposing a new structure: the 'consulting obelisk'. Unlike the traditional wide-based pyramid, the obelisk model is tall and narrow, relying on smaller, senior-heavy teams and AI-driven leverage at every level: Fewer layers of hierarchy Smaller, more senior‐heavy teams AI‐driven leverage at every level 1. AI Facilitators (Early-Career Professionals) A much smaller layer of junior staff compared to the traditional pyramid. Instead of doing manual data entry or sampling, they are trained in AI tools, prompt literacy, data pipelines and workflow design to refine AI-enabled processes. 2. Engagement Architects (Managers & Senior Associates): Experienced professionals who lead the engagements. In audit, they design AI workflows, configure the tools and use traditional professional judgement to interpret the outputs generated by AI. 3. Client Leaders (Partners) Senior figures at the top of the obelisk who focus on cultivating long-term client relationships, managing regulatory liaisons and acting as stewards for AI governance and audit quality management. These roles reflect functional necessities: someone must build workflows, someone must lead and interpret and someone must own relationships. 1.2.2 From human leverage to AI leverage Economically, the obelisk replaces human leverage with AI leverage: AI platforms handle research, modelling, synthesis, documentation and routine analysis Human teams shift from execution to orchestration and judgement Leverage moves from partner supervising 10 juniors to engagement architect and AI facilitator orchestrating hundreds of agentic tasks Three human roles anchor this model:
© 2026 ProTRENDS® - Part of The AIR Network® -12-Architecting the Obelisk: Professional Services in the AI Era AI can reliably automate core junior tasks. Research, modelling, documentation and standard testing can be delegated to AI agents with appropriate supervision. Clients value speed and senior engagement. Decision cycles are short and clients prefer rapid, senior‐heavy teams. Firms can develop AI‐literate talent. AI facilitators and engagement architects are available and can be trained at scale. A stylised comparison underscores the shift: The fee base may be similar or even higher, but human labour costs per engagement fall and the mix shifts towards senior expertise. Margins are driven by AI‐enabled efficiency and premium pricing for deep, rapid insight, rather than by billing out thousands of hours of junior staff time. 1.3 Conditions for Pyramid and Obelisk Success and Failure 1 partner 2 managers 6–8 juniors Multi‐week research and modelling Decks built manually Pyramid engagement: Obelisk engagement: 1 client leader 1 engagement architect 1–2 AI facilitators LLMs and specialised tools such as Lilli and Deckster perform research and deck‐building in hours 1.3.1 When the pyramid thrives High demand for manual, repeatable work. Large volumes of standardised tasks that cannot yet be automated or require human presence (e.g., field audits in complex environments). Deep apprenticeships valued. Clients and regulators expect human scrutiny over large samples and firms rely on manual repetition to build skills. Limited AI adoption. Technology is used as a support tool, not embedded in core workflows. 1.3.2 When the obelisk thrives
© 2026 ProTRENDS® - Part of The AIR Network® -13-1.3.3 Failure modes and structural risks Architecting the Obelisk: Professional Services in the AI Era AI makes junior work redundant. Firms cut graduate hiring Talent pipelines weaken Partner economics become unsustainable Culture misaligns with generational expectations Pyramid failure Obelisk failure Firms cannot build enough AI facilitation capacity AI governance is weak Client trust erodes Senior staff become overloaded Small teams lack resilience to shocks Both models have failure modes: In accounting, additional forces include regulatory and inspection pressure to standardise and document the use of AI tools, which encourages firms to embed AI centrally rather than in ad‐hoc team practices. 1.4 Operational Leveraging and Global Service Delivery Beyond technological automation, a critical structural force is the migration of junior roles to offshore service delivery centres (SDCs) and outsourced partners. This is not merely an efficiency play, it is a primary pre-compression mechanism that is physically hollowing out the local office pyramid before AI agents are even fully deployed. Data from the Accounting Talent Index 2026 by AdvanceTrack confirms the urgency of this shift: 73% of firms report they are currently turning away work due to capacity constraints, and 71% indicate that recruitment challenges are actively slowing their growth trajectory. In this high-pressure environment, outsourcing has become an essential coping mechanism, with 24% of firms already successfully offloading tasks to manage capacity. This creates a distinct dual-leverage effect on the pyramid structure: AI (Technology Leverage) Automates the tasks performed by the junior layer, effectively compressing the base by reducing the number of billable hours required for compliance and research. Outsourcing/SDCs (Process Leverage) Migrates the roles of those junior staff to lower-cost, centralised delivery centres.
© 2026 ProTRENDS® - Part of The AIR Network® -14-Architecting the Obelisk: Professional Services in the AI Era By offloading the wide base of junior work - reconciliations, basic audit testing and data entry - to these centres, firms are structurally transforming their local offices into lean, senior-heavy obelisks. The local junior role is thus redefined. Instead of being a manual labourer in a local apprenticeship, they become an AI facilitator or engagement architect, responsible for managing the data pipeline between the client and the offshore delivery team. Consequently, the traditional pyramid does not just disappear because of AI, it is effectively bifurcated, with the routine labour layer exported globally while the local structure is forced to narrow into a senior-led advisory and orchestration hub. The transition is not uniform. While 24% of firms are actively shifting toward outsourcing there is a significant transition gap: 29% of firms are simultaneously attempting to recruit more junior staff to develop internally 73% of UK firms explicitly report having no plans to reduce headcount in the near term. This data reveals that leadership is currently hedging and trying to maintain the traditional apprenticeship pyramid while simultaneously building the AI-enabled obelisk. This duality explains the current operational friction in many practices. Strategic Insight The pyramid model relies on an expansive base of juniors for margin leverage, whereas the obelisk structure compresses this base by substituting manual labour with AI. The transition is not merely a reduction in headcount, it is a structural shift requiring firms to replace leverage with orchestration.
© 2026 ProTRENDS® - Part of The AIR Network® -15-Architecting the Obelisk: Professional Services in the AI Era 1.5 Forces Destabilising the Pyramid Four sets of forces underpin pyramid destabilisation, each creating a volume-gap that the traditional structure is no longer equipped to handle.Generative AI and agentic systems are displacing the manual volume that previously defined junior roles. While 26% of firms report positive impacts from investing in automation to improve efficiency, this shift fundamentally alters the volume of entry-level manual labour required. By offloading high-volume tasks - such as journal entry testing, anomaly detection and basic reconciliations - to agentic platforms, firms are drastically reducing the billable hours available for traditional graduate training. This creates a volume-gap. The high-volume, low-complexity tasks that previously filled the pyramid base are disappearing, forcing a shift from manual execution to digital orchestration.Clients are increasingly needier than ever demanding real-time transparency and rapid insights rather than slow, manual reporting cycles. The Accounting Talent Index 2026 highlights that this pressure, coupled with increasing regulatory complexity, creates an environment where traditional manual delivery is perceived as sluggish and inefficient. Clients are no longer just paying for hours they expect seamless, AI-integrated delivery. Firms that cannot provide this speed are finding their service models misaligned with current market demand, forcing them to pivot toward value-based, outcome-focused pricing models to remain competitive.The traditional path of paying dues through years of repetitive grunt work is fundamentally incompatible with the current talent market. The Accounting Talent Index 2026 reports that 74% of firms are concerned sustained workloads are driving staff out, with 26% of professionals already considering leaving the profession entirely. Graduates now prioritise AI fluency, diverse experiences and architectural responsibility over rote technical execution. Firms that persist in utilising junior talent for high-volume, mind-numbing data entry risk not only obsolescence but also higher churn, as the next generation of accountants demands a modern, tech-enabled career path.The traditional pyramid is no longer just under pressure from technology it is failing to meet basic market demand. Data from the Accounting Talent Index 2026 reveals: 73% of firms are currently turning away work due to capacity constraints 71% report that recruitment challenges are actively slowing their growth trajectory. This confirms that the pyramid structure is physically incapable of scaling in the current labour market, transforming from a growth engine into a rigid bottleneck that prevents firms from capturing available work.Technological automation Client and market expectations Talent preferences and burnout Structural capacity failure
© 2026 ProTRENDS® - Part of The AIR Network® -16-Architecting the Obelisk: Professional Services in the AI Era 2. Accountancy Firms as the Primary Lens Having established the structural theoretical foundations of the pyramid and the obelisk, we now test these models against the real-world constraints of the accounting profession. Specifically the rigorous regulatory and oversight requirements that differentiate audit from general consulting. 2.1 Structural Differences Between Consulting and Accounting Professional services often conflate consulting and accounting but structural pressures differ. Regulatory Intensity Audit is heavily regulated; consulting is not. Audit firms must satisfy FRC, PCAOB and other regulators regarding methodology, documentation and independence. Ownership and Governance Many accounting firms are partnerships with complex profit‐sharing and governance structures. Consulting has a mix of partnerships, corporations,and boutiques. These differences mean accountancy firms must manage AI‐driven structural change under tighter constraints. 2.2 Big Four AI Platforms and Agentic Strategies 2.2.1 Deloitte: Omnia and Zora AI Deloitte’s global audit platform, Omnia, has embedded generative and agentic AI capabilities to automate documentation review, data extraction and drafting of audit communications. New AI features include: In parallel, Deloitte’s Zora initiative deploys AI agents across finance and operations, with some analyses forecasting up to 25% cost reduction and 40% productivity gains in targeted processes. Structurally, these platforms reduce the manual workload on junior auditors and enable more standardised, centrally controlled workflows. AI‐driven navigation of financial statements and supporting data Tools to summarise contract terms and board minutes Agentic workflows that route tasks between AI systems and human auditors Product Definition Consulting sells bespoke problem‐solving and advice; audit sells assurance over financial statements, with codified standards and inspection regimes.
© 2026 ProTRENDS® - Part of The AIR Network® -17-2.2.2 EY: Canvas multi‐agent framework EY has announced a global multi‐agent framework embedded in EY Canvas, its assurance platform, targeting 100% agent support for audit activities by 2028. The agents: Business Insider reports that EY executives expect these tools to require higher experience levels from junior auditors, who must interpret AI outputs and understand underlying logic rather than only performing manual testing. The structural implication is a smaller base of junior staff performing more judgement heavy review work. Search and summarise documentation (e.g. minutes, contracts) Assist in sampling and risk identification Automate repetitive tasks in audit planning and execution 2.2.3 PwC: Agent OS and AI training commitment PwC US committed 1 billion USD over three years to AI investment and training. This includes: PwC emphasises that AI will augment, not replace, accountants but job postings show a rapid increase in AI‐related roles relative to traditional audit positions. Widespread AI training and ethics education for staff Deployment of tools such as ChatPwC (secure GPT‐4 access) and Harvey for legal and tax documentation Development of an agent orchestration platform, often referenced as Agent OS, to coordinate AI agents across workflows Architecting the Obelisk: Professional Services in the AI Era 2.2.4 KPMG: Clara, Workbench and vibe coding KPMG’s Clara platform integrates AI and data tools into audit workflows.
© 2026 ProTRENDS® - Part of The AIR Network® -18-Architecting the Obelisk: Professional Services in the AI Era 2.3 Regulatory Guidance: FRC and PCAOB 2.3.1 FRC: Generative and agentic AI guidance (UK) The UK’s Financial Reporting Council (FRC) has published guidance that directly addresses how audit firms should use generative and agentic AI tools. Key elements include: 1. Risk CategoriesAuditors misinterpret or over‐rely on AI resultsAI tools used in ways inconsistent with standardsDeficient outputsMisuse of outputsMethodology risksThe tool does not do what was intended 2. Mitigation principles 3. Firm‐level versus file‐level documentation The guidance suggests evaluating inputs, system architecture and human review plans and calibrating mitigation activities to each use case. Centralised tools can be documented at firm level, with audit files focusing on how outputs informed specific judgements. Bespoke tools may require more detailed file‐level documentation. KPMG’s Clara platform integrates AI and data tools into audit workflows. Reporting suggests that KPMG is piloting vibe coding using AI programmes to automate tax and compliance tasks, with professionals guiding and reviewing outputs. The firm has also been associated with early adoption of AI‐enabled risk and compliance workflows. Collectively, Big Four efforts point towards AI‐augmented structures in which agentic AI performs administrative and analytical work, while human auditors concentrate on review, risk assessment and client interaction. The FRC emphasises that regulatory accountability remains with human auditors and firms; AI tools do not change responsibility under ISQM (UK) 1 or auditing standards.
© 2026 ProTRENDS® - Part of The AIR Network® -19-2.3.2 FRC: AI in audit documentation example An earlier guidance document, AI in Audit: Illustrative Example and Documentation Guidance, provides a concrete example of using AI to enhance procedures over journal entries and how to document such tools. The PCAOB’s 2024 Spotlight on Generative AI summarises observations from outreach to firms and preparers. It underscores: The need to explain how AI outputs were validated The relationship between AI tools and traditional sampling The importance of aligning AI use with firm quality management systems In practice, this means US firms must treat AI‐enabled tools as sophisticated technology‐assisted analysis, ensuring sufficient evidence, supervision and documentation. 2.3.3 PCAOB: Spotlight on generative AI (US) Key findings: Architecting the Obelisk: Professional Services in the AI Era Firms are currently using GenAI primarily for administrative and research tasks but expect to expand use into planning and performing audits. The PCAOB emphasises that existing standards - particularly AS 1105 (Audit Evidence), AS 2301 (Responding to Risks of Material Misstatement), AS 1201 (Supervision) and AS 1215 (Documentation) - already apply to technology‐assisted analysis. The PCAOB is modernising quality control (QC 1000) and clarifying responsibilities when using technology‐assisted analysis but has not yet issued AI‐specific standards. 1. 2. 3.
© 2026 ProTRENDS® - Part of The AIR Network® -20-22.4 Compression of Junior Layers and Hiring Shifts Evidence of structural compression in accounting includes: Architecting the Obelisk: Professional Services in the AI Era A Computerworld/FT analysis noted that by 2025 the Big Four advertised more AI specialist roles than traditional auditing roles, with AI‐related positions comprising about 7% of postings and auditing roles just under 3%. Job postings Graduate hiring cuts HRreview reported that UK Big Four firms reduced graduate and school- leaver intakes in the last couple of years. KPMG by 29%, Deloitte by 18%, EY by 11% and PwC by 6%, most citing AI automation of routine tasks as a contributing factor (KPMG declined to comment). Commentators warn that cutting entry‐level hiring could undermine future pipelines and apprenticeship learning. Firms respond by emphasising upskilling and new roles focused on AI facilitation and review, but the net effect is a narrower base of junior staff and a more experience‐dense middle. The structural contraction of entry-level roles is empirically supported by recent recruitment data. Analysis by HRreview (2025) highlights a clear strategic shift among the UK Big Four, who reduced graduate and school-leaver intakes in the last couple of years - KPMG by 29%, Deloitte by 18%, EY by 11% and PwC by 6% - specifically citing the automation of routine tasks as a primary driver. KPMG declined to comment. Furthermore, analysis published in Computerworld and the FT reveals a fundamental re-weighting of hiring priorities: By 2025, the Big Four were advertising more roles requiring AI expertise (comprising roughly 7% of total postings) than traditional auditing positions (just under 3%). This shift signals that firms are no longer simply hiring for volume at the base of the pyramid but are instead recruiting for digital fluency to manage the automated workflows that have replaced traditional graduate work.
© 2026 ProTRENDS® - Part of The AIR Network® -21-2.5 Obelisk in Audit versus Advisory Practices In audit, obelisk‐like structures manifest as: 2.5.1 Audit practices These patterns compress the junior base. Tasks that were once the grunt work of trainees now run through AI tools with human review, demanding higher cognitive skills earlier in careers. ESG and sustainability reporting - such as the Australian Sustainability Reporting Standards (ASRS) - represent a 'frontier' use case for the AI facilitator role. With 58% of practitioners identifying climate risk as a significant factor, the manual burden of Scope 3 emission tracking is immense. This is driving a shift where AI facilitators are not just automating audit testing but are becoming the primary interface for ESG data ingestion, transforming a manual regulatory burden into an AI-orchestrated reporting workflow. Agent‐augmented core workflows Multi‐agent systems handle journal testing, sampling, document extraction, contract review for revenue recognition and summarising minutes. Within accounting and tax firms, advisory practices are structurally closer to the consulting obelisk. Experienced auditors as AI facilitators Managers and senior associates design AI workflows, configure tools and review outputs, combining traditional audit judgement with AI orchestration. Partners as client leaders and governance stewards Partners focus on client relationships, regulatory liaison and oversight of AI governance, including quality management and inspection readiness. 2.5.2 Advisory and consulting practices within accounting firms Agile pods of senior experts deliver strategy, deals and complex tax advice, supported by AI research and modelling tools. AI facilitators in these pods manage LLMs, synthetic research platforms and data workflows. Client leaders (often partners) maintain relationships with CFOs, tax directors and boards. AI‐native boutiques such as Unity Advisory, launched by former EY and PwC leaders and backed by up to $300 million from Warburg Pincus, explicitly adopt partner‐led, AI‐centric advisory models without audit conflicts. These structures resemble obelisks: senior‐heavy, low overhead, technology‐led, focused on CFO advisory, tax strategy, and deal readiness. Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -22-RSM US Announced a USD1 billion investment over three years to expand its AI strategy, integrating agentic AI into assurance, tax and consulting services via platforms such as RSM Luca (audit ecosystem), myRSM Tax and Atlas (regulatory mapping). These tools automate workflows like K‐1 extraction and regulatory mapping, reducing manual work. 2.6 Mid‐Tier Firms: RSM, BDO, Grant Thornton and Others Mid‐tier firms are using AI investments to reposition structurally: Structurally, mid‐tier firms seem to be: Regulation and inspection FRC and PCAOB guidance emphasises that AI use must enhance, not undermine, audit quality. Firm systems must be robust and humans remain accountable. Professional standards and qualifications Bodies such as ICAEW and ACCA expect auditors to understand underlying accounting and auditing principles, creating tension if manual work is reduced. BDO USA Reported to have matching AI investment plans, positioning itself alongside RSM in middle‐market AI adoption. Grant Thornton and others Public commentary indicates similar, if smaller, investments, often focused on cloud‐based audit platforms, AI‐enabled data analytics and tax automation. Using AI to operate leaner teams in assurance and tax. Building specialised pods or diamonds (experience‐dense teams) for complex advisory. Retaining pyramidal elements in local practice structures due to regulatory and talent constraints. Evidence on leverage ratios, profit margins and long‐term cultural impact remains sparse. Many mid‐tier initiatives are still in pilot or early rollout phases. 2.7 Regulatory, Talent, and Cultural Constraints in Accountancy Accountancy’s structural transition is constrained by: Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -23-Partnership economics and culture Partnership models assume pyramidal leverage. Obelisk and diamond structures change profit dynamics and promotion expectations. As a result, most accountancy firms are adopting hybrid models: AI‐augmented pyramids with obelisk or diamond features in specific practice areas rather than wholesale structural transformation. Strategic Insight Accountancy’s transition is uniquely constrained by regulatory requirements (e.g., FRC, PCAOB) that mandate human accountability and rigorous audit trails. While consulting can aggressively pursue the obelisk model, audit firms must develop Augmented Pyramids where AI performs the grunt work but human auditors retain ultimate interpretive responsibility. Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -24-Architecting the Obelisk: Professional Services in the AI Era 3. Alternative and Emerging Structures 3.1 Diamond Structures in Professional Services The Diamond Structure The AI Augmented Future of Accountancy Senior Leaders and PartnersFocused on high-level strategy, regulatory governance and maintaining complex client relationships. Junior Staff and AI ToolsRoutine tasks: data entry and sampling are now automated or outsourcedWide Core Experienced ProfessionalsSenior advisers who interpret AI outputs and deliver judgement-rich, high-value work. AI Augmented Mid-Tier CapacityAI agents increase the output of mid- level staff without expanding the junior base. Shift from Volume to Value Experience Dense DeliveryProfitability moves from billing junior hours to pricing premium, fast insights and judgement.Higher margins supported by senior expertise, reducing costly rework cycles.Margins are supported by experience-dense delivery, reduced work and AI augmenting the mid-tier without expanding the junior base. Economic LogicFigure 3.1: The Diamond Structure in Professional Services
© 2026 ProTRENDS® - Part of The AIR Network® -25-Architecting the Obelisk: Professional Services in the AI Era Diamond structures feature a concentrated core of experienced professionals, with relatively smaller junior and senior tiers , producing a diamond shape rather than a pyramid. The core rationale is that clients often pay for expert judgement rather than raw labour volume, so organisations embed more expertise directly into delivery roles. 3.1.1 Concept and rationale A typical diamond structure involves: The Wide Core (Experienced Professionals) A substantial mid‐tier of experienced consultants, auditors or advisors. This layer forms the widest part of the diamond. They handle the judgement-rich work and are well- positioned to interpret AI outputs and integrate them into final deliverables. The narrow base of the diamond is increasingly being maintained through geographical leverage rather than just local junior hiring. According to the Accounting Talent Index 2026, 24% of firms have already successfully implemented outsourcing or offshoring strategies to manage capacity. This transition allows firms to maintain the diamond shape by scaling delivery capacity through offshored, professionally trained teams, effectively bypassing the need to rely solely on local junior cohorts - which 45% of firms report are increasingly difficult to recruit compared to three years ago. The Narrow Top (Senior Leaders / Partners) A smaller tier focused on overarching strategy, firm governance, and managing complex client relationships. The Narrow Base (Junior Staff & AI) A smaller entry-level tier doing routine work, often automated or outsourced. Because routine tasks are largely automated by AI, firms can augment the capacity of the mid- tier without needing to expand the junior base. 3.1.2 Diamond teams in accounting and advisory In accounting and financial advisory, diamond teams and similar constructs, have been advocated as a way to sustain growth while improving client service. A typical diamond team might include: One partner or lead adviser One or two senior advisers or managers One junior accountant or associate One client service coordinator
© 2026 ProTRENDS® - Part of The AIR Network® -26-Architecting the Obelisk: Professional Services in the AI Era 3.1.3 AI‐compatibility of diamond structures Diamond structures are particularly compatible with AI because: This alignment suggests that many firms may move towards obelisk‐diamond hybrids. Senior leaders and client leaders at the top, experience‐dense mid‐tiers orchestrating AI and small bases of junior AI facilitators. Routine tasks can be automated or handled by junior staff using AI tools Experienced professionals are well placed to interpret AI outputs and integrate them into judgement‐rich work AI agents can augment mid‐tier staff, increasing their capacity without expanding the junior base
© 2026 ProTRENDS® - Part of The AIR Network® -27-Architecting the Obelisk: Professional Services in the AI EraDEALSAUDITTAXAIAIAIAI generated insights with judgementPOD LEADEngagement ArchitectEND TO END OWNERSHIPDOMAIN SPECIALISTTechnical knowledge and strategic oversight in specific industriesDATA ENGINEERAccounting experts supported by engineers who manage AI data pipelinesAI SHARED KNOWLEDGEThe pod draws from firm- wide knowledge bases to accelerate deliveryThe Accountancy Pod ModelAgile Expertise for the AI Era Economic Logic of Pod ModelsHighly autonomous with rapid decision cycles and deeper senior level engagementOptimised for complex advisory such as M&A, tax strategy where judgement is paramountReplaces high headcount junior tiers reduced labour costs per engagementFigure 3.2: The Pod Structure Model 3.2 Pod Structures and Agile Team Models
© 2026 ProTRENDS® - Part of The AIR Network® -28-Architecting the Obelisk: Professional Services in the AI Era Pod structures involve small, cross‐functional teams that take ownership of end‐to‐end delivery for specific client segments or products. While popularised in agile software development, they are increasingly adopted in consulting and advisory. In a professional services context, a pod might include: Pods are structurally neutral - meaning they can technically exist within a larger pyramid, diamond or obelisk firm. However, when combined with AI capabilities, pod models naturally push organisations towards leaner, networked configurations with greater autonomy at the pod level. AI-native boutiques like Unity Advisory explicitly use agile pods of senior experts supported by AI to deliver complex advisory without hierarchical overhead. Domain Specialists A professional data engineer who manages data workflows, LLMs and AI orchestration. One or two experts providing deep knowledge in specific areas like tax, audit or deals. An AI Facilitator The team operates with direct access to centralised AI platforms and knowledge bases. Shared Resources The experienced professional who directs the engagement, also known as an engagement architect. A Pod Lead
© 2026 ProTRENDS® - Part of The AIR Network® -29-Architecting the Obelisk: Professional Services in the AI Era 3.3 Network and Platform Models The Firm As A Platform The Firm Orchestrator Internal Team External Experts Specialist Boutique AI Systems One platform A flexible delivery network Figure 3.3: The Network and Platform Orchestration Model
© 2026 ProTRENDS® - Part of The AIR Network® -30-Mega-Platform Private Credit Consortium Architecting the Obelisk: Professional Services in the AI Era Rather than functioning as monolithic hierarchies, network and platform models treat the firm as an orchestrator of ecosystems. Key features of this model include: Examples include: Consulting platforms that assemble teams from networks of independent consultants Legal and tax platforms that connect clients with specialist advisors Accounting alliances that share audit methodologies and technology while remaining separate legal entities The Firm as an Orchestrator The core firm provides the overarching infrastructure, including the brand, methodology, technology and client access. A Distributed Delivery Network The actual work is delivered by a highly flexible mix of internal staff, external independent experts, specialised boutiques and AI systems. AI as the Glue Artificial intelligence strengthens these models by enabling automated expert matching, rapid knowledge retrieval and workflow orchestration across the entire network.
© 2026 ProTRENDS® - Part of The AIR Network® -31-Architecting the Obelisk: Professional Services in the AI Era Rather than relying on a traditional top-down hierarchy, holacracy and self‐management frameworks distribute authority across specific functional roles. While large, legacy accounting firms have not fully adopted holacracy, elements of this structure are increasingly visible in AI‐native boutiques and dedicated innovation units: Autonomous Decision Rights Agile pods that have the authority to make decisions regarding their specific end-to- end delivery without needing hierarchical approval. Role‐Based Responsibilities Authority is tied to a specific role (such as an AI Facilitator or Engagement Architect" rather than a traditional corporate title (like Senior Manager).Distributed AuthorityPower tied to functionsPeer-Based Governance ProcessesCore Elements of Self-ManagementAgile Pods with Autonomous RightsRole-Based vs. Title- Based AuthorityAuthority Redefined: Holacracy-Inspired Structures in AccountancyReconciling with Audit RegulationThe Strategic Balancing ActAccelerating Innovation in Boutiques 3.4 Holacracy‐Inspired and Self‐Managing Structures
© 2026 ProTRENDS® - Part of The AIR Network® -32-3.5 Viability Assessment in Accountancy Profession The transition away from the traditional pyramid is not a binary choice but a strategic selection of structural models tailored to the specific demands of service lines, regulatory environments and client expectations. The viability of these models - diamond, pod, network or platform and Holacracy- inspired frameworks - depends heavily on a firm’s ability to balance innovation with the rigorous accountability required for audit and assurance. 3.5.1 The Diamond Structure: Expertise-Led Delivery Architecting the Obelisk: Professional Services in the AI Era Diamond structures have emerged as a primary alternative for advisory and high- value compliance work. By concentrating the firm's most experienced professionals in the core of the diamond, firms can effectively decouple engagement capacity from the availability of local, junior-level trainees. This is particularly viable in an environment where 73% of firms are currently turning away work due to capacity constraints. The Diamond structure allows firms to scale delivery by supporting senior staff with AI tools and offshore service centres, effectively bypassing the bottleneck of local graduate recruitment. The primary viability risk remains the potential for mid-tier burnout. Without a substantial base of doers, the senior core must be meticulously supported by AI-orchestrated workflows to remain sustainable. 3.5.2 Pod Structures: Agile Orchestration Pod structures are increasingly viewed as the operational unit of the AI-enabled firm. By breaking the monolith into cross-functional teams, firms achieve the agility necessary to deploy AI at scale. These self-managing structures are highly effective at accelerating innovation and allowing firms to adapt rapidly to new technologies like agentic AI. However, they must be carefully reconciled with strict regulatory expectations for clear lines of responsibility in audit and assurance, where bodies like the FRC and PCAOB demand unambiguous, partner-led accountability. Peer‐Based Governance Processes and workflows are governed by peer consensus and structured role accountabilities rather than top-down partner directives.
© 2026 ProTRENDS® - Part of The AIR Network® -33-3.5.3 Network and Platform Models: Orchestrating Ecosystems Network and platform models represent the most radical departure from the firm as a hierarchical monolith. In this model, the firm is reimagined as the orchestrator of an ecosystem of independent experts, niche boutiques and AI-driven knowledge platforms. This approach is highly scalable and solves the recruitment bottleneck by tapping into a global talent pool rather than relying solely on internal pipelines. However, viability here is governed by brand and data standards. To succeed, these platforms require robust governance to ensure that disparate actors - whether internal staff or external experts - operate with the same level of rigour and risk management. This model is best suited for firms that have already successfully digitised their methodologies and can offer a unified, platform-based experience to their clients. Architecting the Obelisk: Professional Services in the AI Era 3.5.4 Holacracy-Inspired and Self-Managing Structures Holacracy and self-managing frameworks offer a compelling vision for firms looking to maximise innovation and attract top-tier, autonomous talent. By distributing decision- making rights, these structures can adapt to AI disruption much faster than firms tethered to traditional partner-led hierarchies. However, their viability in accounting is severely constrained by the regulatory landscape. Both the FRC and PCAOB demand unambiguous, partner-led accountability in audit and assurance; peer-based governance can clash with these statutory mandates. Consequently, these models are currently most viable in specialised advisory, tax strategy or dedicated innovation units where the regulatory blast radius is smaller, allowing firms to experiment with new ways of working before applying them to core assurance services. Pods are highly viable because they foster the engagement architect role - a senior professional who orchestrates a mix of human expertise, outsourced resources and AI agents. This model is particularly effective for advisory practices, where rapid insights are the primary product. Unlike the traditional hierarchy, where decision-making must percolate through layers of management, pods enable end-to-end delivery ownership. The viability of this model hinges on the firm's ability to standardise knowledge sharing across disparate pods so that the firm does not simply become a collection of isolated silos.
© 2026 ProTRENDS® - Part of The AIR Network® -34-Architecting the Obelisk: Professional Services in the AI Era 3.6 Comparing the Models' Impact on Profit Margins and P&L The structural transition from pyramids to obelisks or diamonds represents a fundamental shift in the cost baseline and margin drivers of a professional services firm. In the traditional pyramid, profit margins are generated by exploiting the spread between the blended hourly rate charged to clients and the relatively low salaries of the massive junior workforce performing the billable hours. As firms adopt AI-augmented obelisk or diamond structures, the volume of junior salaries drops significantly but the firm must now absorb high software licensing costs, cloud compute fees and larger compensation packages for the experience- dense mid-tier professionals (engagement architects). Revenue models also shift away from billable hours towards fixed-fee, subscription or outcome-based pricing, as clients are no longer willing to pay for thousands of hours of manual data processing that AI can accomplish in minutes. METRICS Revenue £1,000,000The AI Margin Shift Pyramid vs. Obelisk P&L ComparisonHigher MarginsFrom Human LeverageFirm’s value moves from selling junior hours to...To Digital Leverage ...selling rapid, high-trust senior AI augmented expertise Driven by AI efficiency, senior focus and smarter deliveryTotal Delivery Cost£360,000Gross Margin64%£640,000AI Tech Costs£10,000Minimal basic support techLabour Costs£350,000Weighted to junior staff 13 humans Team PYRAMID 5 humans OBELISK Size Gross Margin 74% £740,000 AI Tech CostsMinimal basic support tech £60,000 Labour CostsReduced headcount, senior heavy £200,000 Total Delivery Cost £260,000*assumes no revenue compression*
© 2026 ProTRENDS® - Part of The AIR Network® -35-To demonstrate this, consider a stylised side-by-side financial breakdown of a complex £1 million advisory or audit engagement: 3.6.1 Quantitative Engagement P&L Scenario Architecting the Obelisk: Professional Services in the AI Era Engagement Revenue Team Labour Costs Allocated AI and Tech Licensing Costs Total Delivery Cost Pyramid Obelisk and Diamond 1 partner 3 engagement architects 1 AI facilitator Gross Margin £1,000,000billed via high volumes of junior hours £350,000driven by large junior headcount £10,000basic software £260,000 64% £640,000 1 partner 2 managers 10 junior analysts £1,000,000billed via value driven outcomes £200,000higher salaries per head, but drastically fewer heads £60,000Premium agentic platforms, LLM API costs £360,000 74% £740,000 While absolute revenue may compress slightly as clients demand a share of the AI efficiency gains, the margin percentage actually improves. Furthermore, because the partner is no longer bogged down supervising the manual errors of 10 juniors, their personal capacity increases, allowing them to oversee multiple high-value engagements simultaneously, thereby driving up total equity returns per partner despite smaller engagement sizes. The financial case for this structural transition is reinforced by the current industry growth paradox. Firms are not shifting models merely to optimise margins but to unlock trapped revenue. 3.6.2 The Key Takeaway
© 2026 ProTRENDS® - Part of The AIR Network® -36-Because 73% of firms are currently turning away work due to a lack of capacity, the traditional pyramid is actively stifling top-line growth. By adopting obelisk or diamond structures, firms can service this latent demand, transforming the P&L from one constrained by the limits of human headcount to one powered by scalable, AI- enabled capacity that captures revenue currently left on the table. Architecting the Obelisk: Professional Services in the AI Era Strategic Insight Professional services firms are not limited to a binary choice between pyramid and obelisk. Alternative models, such as the diamond team, agile pods and network ecosystems, offer distinct advantages for different practice areas. The most successful firms will likely be hybrid organisations that deploy obelisk-like pods for advisory services while retaining structured diamonds or augmented pyramids for compliance-heavy audit work.
© 2026 ProTRENDS® - Part of The AIR Network® -37-4. Who Is Using What - Real Examples The original HBR article which introduces the obelisk structure for professional services firms and subsequent analyses highlight several concrete examples. Architecting the Obelisk: Professional Services in the AI Era 4.1 Consulting Obelisks and AI‐Native Boutiques McKinsey’s Lilli A proprietary AI assistant used by over 72% of its workforce, reducing research and synthesis time by around 30%. Lilli enables consultants to query internal and external knowledge bases, receive synthesised answers and generate working materials rapidly. BCG’s Deckster A tool that builds presentation decks in minutes based on inputs such as outlines, data sets, and bullet points, reducing manual slide production. Bain’s Sage An AI copilot trained on Bain’s internal IP, supporting analysis and synthesis across engagements. Deloitte’s Zora AI agents Agentic AI used to automate and orchestrate internal workflows and client solutions, complementing Omnia in audit. PwC’s Agent OS A platform coordinating agents across different functions, enabling complex multi‐step workflows. AI‐native boutiques include. Monevate A pricing strategy firm that uses AI‐enabled playbooks and modelling tools to deliver advice without a traditional analyst layer. SIB A cost‐reduction specialist whose SpendBrain platform combines AI and human expertise to audit invoices, manage contracts, negotiate vendor terms and continuously monitor savings opportunities. Unity Advisory A CFO‐focused advisory firm launched by former EY UK and PwC UK leaders. Backed by up to USD300 million from Warburg Pincus, explicitly conflict‐free (no audit), AI‐led and partner‐heavy targeting mid‐market, PE‐backed companies with performance‐based pricing.
© 2026 ProTRENDS® - Part of The AIR Network® -38-4.2 Accounting and Audit: Big Four and Mid‐Tier Examples 4.2.1 Big Four audit platforms in practice Disruptive Edge Co‐founded by HBR article co‐authors, using AI‐powered deep research reports and rapid app‐development platforms like Lovable to shorten engagement cycles and staff smaller expert teams. Structurally, these firms embody obelisk or diamond features. Small teams of senior experts, few or no traditional junior analysts, heavy reliance on AI platforms and flexible pricing models. Architecting the Obelisk: Professional Services in the AI EraEY ChatPwC and Harvey integrate AI into documentation and tax. AI training is being rolled out to all staff with emphasis on ethics and prompt literacy. Canvas embeds multi‐agent frameworks. Business Insider coverage highlights early deployments in UK and US assurance practices and describes steep learning curves for junior auditors. PwC Clara and related tools support technology‐assisted audits. Experiments with AI‐based coding in tax illustrate structural shifts in routine work. KPMG Its Omnia platform and Zora agents are being expanded across global audits and advisory, with public statements emphasising productivity gains and audit quality improvements. Deloitte These deployments are still largely within pyramidal organisational outlines but they create obelisk effects within engagement teams. 4.2.2 Mid‐tier AI strategies RSM US Integrates AI agents into Luca, myRSM Tax and Atlas. These tools automate complex tasks such as extracting K‐1s and mapping regulations, allowing professionals to focus on analysis and client advice.
© 2026 ProTRENDS® - Part of The AIR Network® -39-4.4 The Capital Engine: How Private Equity Drives Structural Evolution Private equity (PE) is not merely a provider of liquidity it is an architectural mandate. The structural transition from pyramid to obelisk is fundamentally accelerated by the need to meet the valuation requirements of institutional investors. 4.4.1 The Valuation Gap: Pyramid vs. Platform The market has split into two pricing tiers. Traditional firms operating on the partnership model, reliant on billable hours and manual compliance, remain tethered to valuation multiples of 1.0x–1.2x revenue. Conversely, tech-enabled firms that have productised their services via proprietary IP and AI-orchestrated workflows command multiples of 2.5x revenue or higher. BDO USA Reported to be making similar investments focusing on middle‐market audit and advisory. These initiatives represent substantial AI commitments and suggest structural experimentation around leaner teams, digital leverage and specialised pods. 4.3 Platform and Network Examples Beyond AccountingHerbers & Company’s Diamond Teams® model structures advisory practices around well‐defined ensembles serving specific client segments.Academic work on digital niche platforms in professional services describes ecosystems where platforms co‐ordinate multiple small providers, often using data and AI to match and support engagements.Diamond‐shaped consulting firmsFinancial advisory ensemblesDigital niche platformsNorthPath Strategies and others advocate diamond teams, citing improved client satisfaction and fewer revision cycles. Architecting the Obelisk: Professional Services in the AI Era These examples show that obelisks, diamonds, pods and platforms are not theoretical but that they are being tested and refined in practice.
© 2026 ProTRENDS® - Part of The AIR Network® -40-Architecting the Obelisk: Professional Services in the AI EraHouses tax, consulting, and AI-driven advisory services, which can be majority- owned by PE.The Non-Attest Entity (Advisory Firm)The Attest Entity (CPA Firm) Remains under CPA ownership to satisfy regulatory independence requirements. Alternative Practice Structure (APS) splits the firm into two entities The critical governance hack that enables PE investment APS 4.4.3 The Exit Incentive and Partnership Disruption This structure is mandatory for high-growth firms seeking large-scale capital. It allows the firm to scale the Obelisk advisory arm without compromising the Pyramid audit arm's regulatory standing. Private equity investment fundamentally alters the partnership equity model. In the legacy model, partners acted as stewards of the firm’s long-term legacy, funding their own retirement through internal buyouts. Under PE, partners become agents of the exit. This shift incentivises them to prioritise platform scalability - the Obelisk - over the traditional apprenticeship model. If the firm is no longer a self-perpetuating partnership but a tradable asset class, the obelisk becomes the only rational architecture. It creates the clean, scalable EBITDA required to justify the acquisition, leaving the junior-heavy pyramid behind as a legacy cost- centre that is increasingly squeezed out of the valuation. 4.4.2 The APS Mechanic: Bypassing Regulatory Bottlenecks The obelisk model is the mechanism by which firms reach that 2.5x threshold. By replacing the manual middle (junior pyramid), with AI-enabled orchestration, firms generate SaaS-like margins. PE investors demand this pivot because it decouples revenue growth from headcount growth, allowing them to exit at platform-level multiples rather than service-firm multiples.
© 2026 ProTRENDS® - Part of The AIR Network® -41-Architecting the Obelisk: Professional Services in the AI EraStructural PivotMargin ExpansionValuation MultiplierCapital Injection ContinuousContinuousContinuous CycleCycleCycle of Capitalof Capitalof Capital OptimisationOptimisationOptimisation and Growthand Growthand Growth Continuous Cycle of Capital Optimisation and Growth 4.5 The Capital Structure Loop The Capital-Structure Loop Figure 4.5: The Capital-Structure LoopLiquidity Event Fresh capital influx from investors Business model strategic shifts Improved operational margins Higher valuation as PE multiple increases Exit strategy realised
© 2026 ProTRENDS® - Part of The AIR Network® -42-Architecting the Obelisk: Professional Services in the AI Era Strategic Insight Real-world adoption reveals a dual-track strategy. While the Big Four are building massive internal AI platforms (e.g., Omnia, Canvas) to reinforce their existing structures, AI-native boutiques are using lean, technology-led designs to bypass legacy overhead entirely. The disparity in adoption speed between these groups is creating a significant competitive gap.
© 2026 ProTRENDS® - Part of The AIR Network® -43-Architecting the Obelisk: Professional Services in the AI Era Dimension Pyramid Obelisk Diamond Network/Platform Profitability and margin High margins via junior leverage when utilisation and rate spreads are strong. Vulnerable to rate pressure and AI automation. Margins driven by AI efficiency, premium pricing for senior heavy, outcome oriented work. Needs significant upfront AI investment and platform maintenance. Margins supported by experience‐dense delivery and reduced rework. Higher salary costs but often lower total project costs sensitive to mid‐tier overload. Margins derive from platform fees and ecosystem participation. Potential for high scalability but needs investment in technology, brand and governance. Talent development and career pathways Clear apprenticeship via manual work, deep tacit knowledge, risk of boredom and misalignment with AI era expectations. Compressed pathways. Juniors become AI facilitators earlier but risk of shallow understanding if manual foundations erode. Strong development for mid‐level professionals. Potential pipeline fragility if junior intake shrinks and promotion paths narrow. Varied pathways across ecosystem. Can support diverse careers but may lack coherent internal progression in any single firm. Client outcomes (quality, speed, value) Solid quality when supervision works but slower delivery. May struggle to meet expectations for AI‐enabled speed and continuous insight. High speed, deep insight and closer senior engagement. A risk of over‐reliance on AI without robust governance. High quality continuity due to experienced core, improved satisfaction, speed benefits from fewer revision cycles and AI augmentation. Potentially high value if platform matches clients with right expertise quickly. Quality varies across network - brand and standards must be tightly managed. Scalability and growth Scales by hiring more juniors. Growth can strain culture and quality dependent on graduate markets. Scales through AI platforms. Specialist talent constrained by AI‐literate talent supply and governance complexity. Scales by replicating diamond teams and pods and requires careful talent and compensation design. Highly scalable if platform achieves network effects and is dependent on technology, data and ecosystem health. Resilience to shocks Vulnerable to AI automation and fee pressure with high fixed headcount costs. Resilient to automation in judgement‐heavy work. Vulnerable if AI platforms are commoditised or disrupted. Moderately resilient, benefits from experience. Risk if mid‐tier talent churns or client concentration is high. Resilient if ecosystem diversified and vulnerable to platform outages, regulatory changes or reputational shocks. Cultural sustainability Culture built on long hours and up‐or‐out. Generational misalignment as AI reduces manual work and expectations change. Culture emphasises expertise, AI fluency and client impact. Risk of exclusivity if access to roles and training is limited. Culture focused on collaboration and expertise. Risk of frustration if promotion paths are blocked. Culture varies across participants and platform governance must promote shared values to avoid fragmentation. 5. Pros and Cons Analysis: Pyramid, Obelisk, Diamond and Network/Platform
© 2026 ProTRENDS® - Part of The AIR Network® -44-Architecting the Obelisk: Professional Services in the AI Era Strategic Insight Every structural model involves trade-offs. The pyramid excels at deep apprenticeship but is vulnerable to AI automation. The obelisk offers premium speed and margin but requires heavy investment in governance. The optimal structure is context-dependent, relying on whether the primary value driver is regulatory compliance (Audit) or bespoke strategic insight (Advisory). 5.2 Sharp Trade‐Offs and Strategic Choices Several trade‐offs are especially sharp: Automation vs apprenticeship: Obelisk and diamond structures with heavy AI use risk undermining traditional apprenticeship models; firms must find new ways to build deep skills. Lean structures vs inclusivity: Smaller, senior‐heavy structures can become closed clubs, reducing opportunities for diverse entrants; platforms can help but may externalise precarity. Outcome‐based pricing vs billable hours: Shifting pricing models challenges internal accounting, partner expectations, and performance metrics.
© 2026 ProTRENDS® - Part of The AIR Network® -45-Architecting the Obelisk: Professional Services in the AI Era Routine and repeatable tasks AI LEDData entryExtractionSummarisation Analysis and interpretation Judgement Accountability HUMAN LEDStrategySign-offClient relationship 6. The AI Factor: Technology as Structural Driver AI is most structurally significant where it decomposes junior work into discrete, automatable components. 6.1 Decomposition of Junior Tasks and AI Automation 6.1.1 Consulting tasks Literature reviews and benchmarking Model building and scenario analysis Deck drafting and narrative development Tools like Lilli and Deckster handle these tasks, with AI facilitators curating prompts, data sources and outputs. AI AND HUMANTestingModellingDrafting The AI AUTOMATION HEATMAP Where AI replaces routine and repetition and humans remain essential Figure 6.1: The AI-Led Structural Driver Framework
© 2026 ProTRENDS® - Part of The AIR Network® -46-6.2 Agentic AI: Orchestration and Confidence Frameworks 6.1.2 Audit and accounting tasks Journal entry testing and anomaly detection Invoice and contract extraction and analysis Sampling, confirmations, and reconciliations Preparation of working papers and memos Agentic AI embedded in Omnia, Canvas, Luca and similar platforms performs many of these tasks, with auditors focusing on design, oversight and conclusion. 6.3 Shifts in Compensation, Metrics and Value Models Agentic AI refers to multi‐agent systems in which AI agents perform specific tasks and co‐ordinate through orchestrators. In audit, regulators and firms emphasise the following: AI reshapes compensation and value models. For example: 1. Metrics Firms experiment with metrics such as ‘insights delivered’, turnaround time and client outcome measures rather than pure billable hours. Confidence frameworks Firms must establish how much confidence they have in tool outputs based on input quality, architecture, testing and human review. Risk categories FRC guidance breaks risks into deficient output, misuse, and methodology; each category requires tailored mitigation. Human review calibration The extent of human review should match risk and tool sophistication. For low‐risk summarisation lighter review may suffice. For high‐risk revenue recognition deeper review is essential. These frameworks shape team roles. AI facilitators manage tools and testing, engagement architects design overall AI‐human workflows and partners ensure governance alignment. Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -47-6.4 Governance and Ethical Accountability These changes are emergent and uneven but they reinforce the logic of obelisk and diamond structures where value is concentrated in fewer, more capable individuals supported by AI. Regulators and ethics scholars stress that AI does not replace auditor responsibility. Obelisk and diamond structures must therefore be designed with governance baked in: clear lines of responsibility, explicit roles for AI facilitators and architects and robust documentation. FRC guidance emphasises that regulatory accountability remains unchanged. Firms must integrate AI within quality management systems. PCAOB spotlights Treat AI as technology‐assisted analysis within existing standards, requiring sufficient evidence, supervision and documentation. Ethics research from centres such as Harvard’s Edmond & Lily Safra Center highlights the need for organisational governance frameworks that embed ethical guardrails into workflows. Strategic Insight AI is the catalyst, not just a tool. By decomposing junior tasks into discrete, automatable components, technology allows firms to shift the burden of execution away from humans. However, this relies on sophisticated 'confidence frameworks' - governance protocols that ensure AI agents act within the firm’s strict quality and ethical guardrails. 2. Compensation Partners and senior staff are rewarded for AI orchestration, platform development and client outcomes. Juniors are awarded for AI fluency and judgement. 3. Pricing Outcome‐based and performance‐linked pricing grows, particularly in AI‐enabled advisory and outsourcing services. Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -48-Architecting the Obelisk: Professional Services in the AI Era 7. Client and Talent Implications The structural transition to obelisk and diamond architectures does not impact all clients equally. Client requirements vary drastically across the market, necessitating a segmented approach to how firms deploy AI and human talent. 7.1 Client Perspective: Segmented Views 7.1.1 Large Listed Clients (FTSE, S&P) The mid-market and private equity-backed segment presents a starkly different value proposition. These clients, often operating in high-growth, high-pressure environments, prioritise rapid outcome-focused advice over long-form multi-layered assurance. They are generally less concerned with the internal hierarchy of their professional services providers and are instead focused on the speed of business intelligence, tax strategy and deal readiness. This segment is where the obelisk model truly thrives. These clients are the primary beneficiaries of experience-dense teams as they demand constant access to senior strategic wisdom rather than junior-led compliance cycles. For this group, the decoupling of advisory fees from traditional billable hours is a distinct competitive advantage, as it aligns the firm's incentives with the client's growth objectives. For large, listed entities, the primary mandate remains uncompromised audit quality and regulatory assurance. These clients demand absolute transparency regarding AI usage, particularly in high- risk areas like revenue recognition, risk assessment and control testing. While they value the efficiency gains of AI-driven compliance, they are highly sensitive to the systemic risks associated with automated systems. Consequently, firms serving this segment are incentivised to retain hierarchical, human-overseen pyramids for statutory audit. In this context, every AI-driven insight must undergo rigorous partner-level scrutiny before final sign-off. Speed is a vital component of the service delivery but it remains secondary to the imperatives of independence, audit integrity and regulatory compliance. 7.1.2 Mid-Market and PE-Backed Clients
© 2026 ProTRENDS® - Part of The AIR Network® -49-Architecting the Obelisk: Professional Services in the AI Era Mid-career professionals (Managers and Senior Associates) are the linchpin of the obelisk. With 86% of advisory practices reporting negative impacts from the talent shortage, these individuals are currently bearing the brunt of the capacity crunch. 7.2.2 Mid-Career Professionals: The Engagement Architects 7.2.1 Graduates and Early-Career Professionals: From Apprentice to AI Facilitator Developmental Risk Firms face an apprenticeship gap. As firms struggle with growth there is a risk that junior staff are tasked with high-level review before they have developed the foundational technical skills previously gained through manual work. Firms must proactively build simulated learning environments to replace the manual training ground that is rapidly disappearing. The volume of entry-level manual roles is shrinking as firms turn to outsourcing (24% of firms) and AI to manage capacity. Graduates are increasingly recruited as AI facilitators and data stewards, roles that require prompt literacy and system- orchestration skills rather than rote technical execution. Role ShiftThe Squeezed Middle This tier is most vulnerable to burnout. 35% of professionals reported increased stress or anxiety and 26% are considering leaving the profession entirely. The obelisk model offers a solution by removing the people management burden of large junior teams but it places a new cognitive burden on them to maintain deep technical knowledge while technology evolves rapidly. They are transitioning into engagement architects. In a lean, senior-heavy structure, their value is not managing a team of 10 juniors, but orchestrating an AI-enabled workflow. Role Shift
© 2026 ProTRENDS® - Part of The AIR Network® -50-Architecting the Obelisk: Professional Services in the AI Era Strategic Mandate The obelisk is the primary mechanism to break this deadlock. By replacing human leverage with AI leverage, partners can decouple revenue growth from headcount growth. New Metrics Partners must pivot from rewarding billable hours to rewarding platform stewardship and outcome delivery. As 71% of firms confirm that recruitment challenges are actively slowing expansion, the partner’s role must shift from being a rainmaker with a pyramid to being a platform architect who oversees a diverse delivery network (such as internal staff, outsourced service centres and AI agents). Partners are trapped in a growth paradox. While 73% of firms report ambitious growth plans, 73% are forced to turn away work because they lack the capacity to service it. 7.2.3 Partners and Senior Leaders: The Growth Paradox The difficulty of balancing this structural transition is further underscored by the Austin Rose 2026 Salary Survey. The report notes that while economic and regulatory pressures have forced firms to “become more disciplined, focused and commercially aware”, this new discipline creates a paradoxical challenge to reintroduce healthy levels of mobility and career progression without triggering the high attrition rates observed in previous, less- disciplined cycles. Mid-career professionals are caught in this tension and they must navigate a landscape where the traditional apprenticeship ladder has been replaced by the more fluid, and sometimes less predictable, architecture of the obelisk.
© 2026 ProTRENDS® - Part of The AIR Network® -51-Architecting the Obelisk: Professional Services in the AI Era The transition toward AI-augmented architectures cannot be evaluated solely through the lens of economic leverage or margin optimisation. Accountancy firms operate as key social and economic anchors, providing structured mobility, graduate employment and foundational training for broader financial ecosystems. Leaders must address the social dimension of ESG (Environmental, Social and Governance) within their workforce strategies: Section 7.3: The Human & Social Imperative: Beyond Efficiency to Career Enrichment 7.3.1 The Social Contract and ESG Dimensions of Talent Strategic Insight The talent crisis is the primary driver of structural change. Firms are not adopting AI or outsourcing simply for efficiency, they are doing so to survive a reality where 71% of firms feel that recruitment challenges are the single biggest barrier to achieving their expansion ambitions. The obelisk is the natural architecture of a firm that has accepted it cannot scale through traditional headcount alone. Key Strategic Questions for Leadership 1. Purpose & Career Value: Are we using AI primarily to cut costs, or to eliminate drudgery and create more meaningful, engaging career paths for our people? 2. Talent Pipeline & Social Responsibility: How do we maintain our commitment to graduate development, social mobility and the broader social contract of the profession as junior roles evolve? 3. Employer Brand & Culture: Does our AI and operational strategy inspire confidence among our workforce, or does it signal insecurity and retrenchment?
© 2026 ProTRENDS® - Part of The AIR Network® -52-Architecting the Obelisk: Professional Services in the AI Era Responsibility of Firm Leadership Firm leadership carries the ultimate responsibility to ensure AI deployment is guided by strategic vision and human-centric stewardship rather than purely defensive cost- cutting. Leaders must actively redesign performance metrics, governance frameworks and partner reward models to align with digital orchestration rather than raw billable hours. By establishing structured learning environments, explicit ethical guardrails and clear career pathways, leadership can protect the firm's talent pipeline, preserve its social contract, and ensure technological adoption elevates professional capability across all levels. Emotional & Professional Wellbeing With 74% of firms concerned about staff burnout, AI’s primary value lies in restoring balance and cognitive space. Automating manual data entry, reconciliations and routine document drafting enables professionals at every level to focus on creative problem-solving, strategic advice and client relationships. Accelerated Learning and Engagement For early-career professionals, AI facilitators do not simply monitor platforms, they gain rapid exposure to higher-level analysis, risk evaluation and strategic interpretation far earlier in their careers than was possible under legacy models. Rather than viewing AI as a mechanism to eliminate junior roles, forward-thinking firms are leveraging technology to eliminate drudgery, burnout and administrative burden, fundamentally elevating the human experience at work. 7.3.2 Human-Centric AI: Shifting from Decoupling to Enrichment Preserving the Talent Foundation: Treating AI purely as a headcount reduction tool risks severing the entry-level talent pipeline and weakening organisational culture. Employer Brand Integrity: Unchecked messaging around workforce pre- compression can severely damage employer brand equity and graduate recruitment appeal in an already hyper-competitive market.
© 2026 ProTRENDS® - Part of The AIR Network® -53-Architecting the Obelisk: Professional Services in the AI Era 8. Additional Perspectives and Emerging Questions Firm leaders face an existential choice: 1. To implement incremental AI adoption within legacy pyramids or 2. Enact a radical redesign towards obelisk-diamond hybrids. The challenge is that managing partners historically operated with a ‘book of business’ mindset, governing through layers of human capital. Under an obelisk model, governance shifts to the technical architecture. Firms must figure out how to embed AI confidence frameworks directly into quality management systems (ISQM, QC 1000). Furthermore, leadership must redesign equity distributions when leverage shifts from junior headcount to proprietary AI platforms. 8.1 Firm Leadership: Governance and Partnership Viability Leaders who fail to rewrite their partnership agreements to reward intellectual property creation, AI platform stewardship and firm-wide data hygiene, rather than pure revenue origination, will suffer. The most innovative engagement architects will abandon legacy firms for AI-native boutiques where their technical and strategic contributions are better compensated. Moreover, firms will increasingly need to appoint roles like a Chief AI Ethics Officer with veto power over client engagements to satisfy regulators. The “So What?” Leadership must also manage the integration hangover. Data from the Austin Rose 2026 Salary Survey suggests that the ongoing effort of merging acquired firms, particularly for those influenced by private equity, has made it difficult for leadership to convince the broader market of their organisations' core value, occasionally stalling exit strategies and forcing them to pivot back toward further efficiency drives or margin-enhancement initiatives. Leaders must ensure that the transition to an obelisk structure is driven by strategic intent rather than simply being a reflexive response to these integration pressures.
© 2026 ProTRENDS® - Part of The AIR Network® -54-Architecting the Obelisk: Professional Services in the AI Era Mid‐level professionals (Managers and Senior Associates) are caught in the squeezed middle. They face deep uncertainty about the long-term availability of senior roles in compressed structures, and they are struggling with how to maintain deep technical knowledge when AI handles the routine tasks they once used to train their juniors. 8.2 Mid‐Level Professionals: Career Path Uncertainty The professional services sector is experiencing a surge in private equity (PE) interest. Investors and PE firms evaluating accounting and consulting practices must now look beyond traditional EBITDA metrics to assess the sustainability of margins in AI- enabled structures. Mid-level professionals must aggressively pivot their identity. They can no longer survive merely as reviewers of junior manual work or managers of people. They must evolve into orchestrators of systems, engagement architects who can formulate complex prompts, validate AI logic against accounting standards and manage complex client emotional dynamics. For these professionals, proactively demanding structured, scenario-based AI training from their firms is no longer optional it is a requirement to avoid obsolescence. The “So What?” 8.3 Investors and Private Equity: Valuation and Margin Defensibility The valuation multiples for professional services firms are bifurcating. PE investors will increasingly value traditional pyramid firms as low-growth legacy businesses. Conversely, firms that successfully transition to an obelisk or diamond model, and can demonstrate that their proprietary AI platforms (like SIB's SpendBrain) are defensible, scalable intangible assets, will command software-like tech multiples. We will likely see PE actively driving the obelisk transition post-acquisition by injecting capital specifically to replace the junior base with AI infrastructure to maximise long- term margins. The “So What?”
© 2026 ProTRENDS® - Part of The AIR Network® -55-Architecting the Obelisk: Professional Services in the AI Era Vendors supplying AI platforms and agent orchestration tools must understand that obelisk and diamond structures demand entirely new types of software. Firms are moving away from buying seats or individual licences for junior staff and are instead procuring enterprise-wide, interoperable platforms that can plug into diverse ecosystems. 8.4 Vendors and Technology Providers: Procurement Opportunities and Risks The transition is fraught with contradictions that cannot be solved by technology alone. Vendors face a massive risk of commoditisation if they only offer generic wrapper tools for LLMs. To win enterprise contracts at major accounting firms, technology providers must build regulatory-ready products. If a vendor's AI tool does not out-of-the-box support the FRC's documentation expectations (e.g., explainability, validation of outputs and audit-trail logging), it will fail procurement. Vendors who succeed will be those who co-develop tools directly with engagement architects to bake compliance into the code. The “So What?” 8.5 Structural Tensions and Contradictions Automation vs. Deep Learning If AI automates all entry-level work, the firm destroys its own training ground. Lean Structures vs. Diversity & Inclusion Smaller, senior-heavy obelisks risk becoming closed, elitist networks, cutting off the wide intake funnels that traditionally drove diversity in the profession. Outcome-Based Pricing vs. Timesheets Trying to implement value-based pricing while partners are still measured on billable hours creates cognitive dissonance and operational chaos.
© 2026 ProTRENDS® - Part of The AIR Network® -56-Architecting the Obelisk: Professional Services in the AI Era As discussed, the shift from a pyramid to an obelisk directly disrupts traditional partnership equity structures. In a traditional firm, a partner’s profit share is largely a function of their leverage and how many billable junior hours they command. If AI platforms automate those hours, the fundamental economics of making partner must change. 8.6 The Future of the Partnership Equity Model Equity distributions in obelisk and network structures must be tied to intellectual property contribution. Firms will face immense pressure from external capital to capitalise the value of the firm's AI platforms as intangible assets. This fundamentally alters how partners buy in and out of the firm; a retiring partner is no longer just handing over a client list but a share of a highly profitable, automated AI infrastructure. The “So What?” These are not technical IT problems they are severe change-management crises. Firm leadership must recognise that deploying AI without fundamentally altering HR, billing and diversity initiatives will break the firm's culture. For example, firms may need to introduce "simulated audit environments" to train graduates, replacing the real-world manual work that has been automated, ensuring the next generation of partners still understands the underlying mechanics of the balance sheet. The “So What?”
© 2026 ProTRENDS® - Part of The AIR Network® -57-Architecting the Obelisk: Professional Services in the AI Era 8.7 Regulatory Perspectives on Structural Evolution: The FRC, PCAOB and Beyond As accountancy firms transition away from traditional hierarchies regulators evaluate these structural shifts through an uncompromising lens - the preservation of audit quality, human accountability and systemic independence. The Pyramid Regulators are comfortable with the pyramid. Its multi-tiered human review supports strict file-level documentation and controlled apprenticeships. FRICTION DIAMONDS AND PYRAMIDS OBELISKS AND PODS NETWORK PLATFORM AND HOLACRACY Clear hierarchy Clear accountability Distribute roles Human oversight LOW FRICTION MEDIUM FRICTION HIGH FRICTION Distributed authority Complex accountability ACROSS REGULATORY FRICTION LEVEL (FRC/PCAOB) REGULATORY STRUCTURAL MODELS As AI moves into the structural core of professional services, traditional models are being challenged. This matrix maps the structural models against regulatory expectations from bodies like FRC and PCAOB, emphasising that AI must enhance, not undermine, audit quality.Figure 8.1: Regulatory Viewpoints on Structural Models The Obelisk and Diamond Regulators view these models with cautious optimism mixed with systemic concern. They favour the experience-dense teams found in diamonds as seasoned professionals theoretically reduce audit risk. However, they are acutely concerned about misuse of outputs if auditors over-rely on AI.
© 2026 ProTRENDS® - Part of The AIR Network® -58-Architecting the Obelisk: Professional Services in the AI Era Regulators view autonomous pods with suspicion if they blur hierarchical sign-offs. Platform models carry high systemic risk regarding data security and independence. Holacracy-inspired self-managing structures face severe regulatory resistance as peer-based governance is fundamentally incompatible with statutory audit frameworks that demand unambiguous top-down partner accountability. Pods, Networks and Holacracy Over the next 5–10 years, these regulatory postures are likely to force a hard structural split within large firms. Advisory practices will rapidly evolve into highly networked, flat obelisk pods to maximise speed, while audit practices will be forced to maintain hierarchical diamond or augmented-pyramid structures to ensure compliance and controlled apprenticeships. The FRC strictly dictates that human partners remain accountable under ISQM (UK) 1 - AI cannot hold a statutory audit licence.
© 2026 ProTRENDS® - Part of The AIR Network® -59-Architecting the Obelisk: Professional Services in the AI Era 9. Outlook and Strategic Implications Three plausible structural scenarios over the next 5–10 years: Firm leadership Treat AI as a structural force redesigning workflows, talent models and governance from first principles Invest in AI platforms and agentic orchestration with strong governance and ethics Pilot obelisk‐diamond engagement structures in audit and advisory with clear metrics and feedback loops Mid‐level professionals Develop AI orchestration and systems thinking skills Engage in governance and ethics discussions, help shape sustainable workloads and learning models 9.1 Structural Durability and Scenarios (5–10 Years)Network/platform models expand and firms become orchestrators of ecosystems of specialists and AI systems where internal structures matter less than platform governance.Regulators slow or constrain AI use in audit. Pyramids persist longer and obelisk and diamond adoption focuses on advisory and non‐assurance services.Hybrid obelisk‐diamond dominancePlatform‐centric ecosystemRegulation‐constrained evolutionLarge firms retain pyramidal outlines but embed obelisk‐diamond engagement structures in audit and advisory. Mid‐tier firms and boutiques compete through AI‐enabled, senior‐heavy models. The most likely path is hybrid where pyramids are compressed and augmented by obelisk‐diamond teams, within increasingly platform‐like firms. 9.2 Strategic Imperatives for Key Audiences Investors and PE Evaluate structural redesign and AI investments as part of thesis and valuation, not just cost‐savings line items Consider backing AI‐native boutiques and conflict‐free advisory models as challengers to pyramidal incumbents
© 2026 ProTRENDS® - Part of The AIR Network® -60-Architecting the Obelisk: Professional Services in the AI Era Vendors and technology providers Design tools and platforms that align with obelisk and diamond workflows and embed governance features Prepare for sophisticated buyers in accounting and consulting who demand explainability, regulatory alignment and deep integration. Across all audiences, the core imperative is to re‐architect professional services around AI‐augmented, judgement‐centric work replacing volume‐driven pyramidal leverage with structures that concentrate value in senior expertise, AI fluency and robust governance. 9.3 Transition & Change Management Roadmap For legacy pyramidal firms, shifting to an obelisk or diamond model without breaking current revenue streams or violating strict audit quality regulations requires a phased, careful transition. TRANSITION AND CHANGE MANAGEMENT ROADMAP01020304Pilot AI in routine workIntroduce specialist teamsEmbed AI into core delivery Align pricing and rewards Figure 9.2: The Phased Transition RoadmapRESTRUCTUREAUGMENTBUILDREALIGNValueThe PyramidDiamond Teams AI-Augmented Obelisk Traditional modelWorkflows
© 2026 ProTRENDS® - Part of The AIR Network® -61-Architecting the Obelisk: Professional Services in the AI Era Phase 3: Restructure Assurance Workflows After validating AI confidence frameworks internally, begin deploying agentic AI into core assurance tasks (like journal entry testing). Simultaneously shrink graduate intake volumes and formally introduce AI Facilitator roles. Ensure FRC/PCAOB compliance by maintaining partner-led hierarchies over these lean teams. Phase 4: Realign Equity and Pricing Fully transition partnership reward mechanisms away from raw billable hours to strategic client outcomes, IP development and AI platform stewardship. 10. Conclusion: The Death of the Pyramid and the Architect’s Ascendance Is the pyramid dead? The answer is a definitive yes, provided one defines the pyramid by its original economic logic: the reliance on a vast, low-cost junior workforce as the primary lever for partner profitability. That model is now structurally obsolete. AI has cannibalised the grunt work that sustained that base and the broader talent crisis - with 26% of professionals considering leaving the profession due to burnout - has rendered the traditional apprenticeship model unsustainable. However, the obelisk is not merely a smaller pyramid it is a fundamental reinvention of the professional services firm. 10.1 The Verdict: Bifurcation, Not Uniformity The future of the accountancy firm is bifurcated. Leaders should not seek a singular structural model but rather a hybrid architecture. Phase 2: Build Diamond Advisory Teams. Ring-fence complex, non-audit advisory engagements (like deals, tax strategy or CFO advisory) and pilot true diamond structures. Staff these with high concentrations of mid-tier engagement architects and AI tools, heavily reducing junior billable hours while transitioning to fixed-fee outcome pricing. Phase 1: Augment the Pyramid Begin by piloting generative AI tools in enclosed, low-risk administrative workflows (e.g., initial document summarisation, internal benchmarking). The firm remains functionally a pyramid, but junior efficiency improves.
© 2026 ProTRENDS® - Part of The AIR Network® -62-Architecting the Obelisk: Professional Services in the AI Era The collapse of the pyramid is an evolution to be embraced. 10.2 Why This is a Good Thing? The Return of Craft: By automating routine data processing, firms are finally forced to sell what they were always meant to sell - judgement, ethics and strategic insight. Talent Value Realisation: We are ending the era of the graduate as a spreadsheet machine. Future staff will be architects, professionals who design and oversee complex AI workflows, significantly increasing the quality of work-life. Margin Quality: Moving from billable hours to outcome-based pricing allows firms to align revenue with the actual value created for the client, decoupling growth from headcount. 10.3 The Final Mandate The firms that dominate the next decade will be those that stop viewing AI as a cost- saving tool and start viewing it as a structural engine. Do not wait for the junior-led pyramid to erode your margins and destroy your talent pipeline, cannibalise your own pyramid before the market does it for you. Start by thinning the base, empowering the middle to become architects and holding the top accountable for platform-led strategy. The era of the labour-leveraged firm is over. The era of the insight-led architect has begun. Statutory assurance will remain tied to hierarchical structures due to regulatory requirements for independence and human accountability. Firms will adopt augmented pyramid structures where the junior layer is thinner but remaining staff are retrained as AI facilitators who oversee agentic workflows. Audit (The Regulated Augmented Pyramid) In consulting, tax strategy and deal advisory, the pyramid is obsolete. Here, the obelisk or agile pod is the new standard. These practices will shed the junior weight entirely, moving to senior- heavy, experience-dense teams that sell outcomes, not hours. Advisory (The Obelisk or Pod)
© 2026 ProTRENDS® - Part of The AIR Network® -63-The AIR Network Powered by AI. Built on Relationships. Focused on Results. The AIR Network is a multidisciplinary ecosystem representing some of the world’s most respected organisations that sell to and through the accounting profession and to adjacent professional services. AIR’s mission: To be the indispensable resource for any organisation looking to grow authority, traction and commercial success in the accounting profession and beyond. FIRMOLOGY® The Definitive Intelligence Platform for UK Accountancy Brought to you exclusively by AIR Network. Track 67,695+ firms. Analyse £34bn in market value. Predict tomorrow’s leaders with data-driven insights powered by Companies House, Accountancy Age and dedicated research. Built on Official Data Sources Firmology aggregates and analyses data from multiple authoritative sources, ensuring accuracy and reliability for critical business decisions bringing you everything you need to understand the UK accountancy market. Find out more at: airnetwork.org Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -64-Who’s Behind The AIR Network? Steve Cox FCCA, CEO of AIR steve@airnetwork.org A strong advocate for digital transformation, Steve is committed to advancing the role of accountants by helping them leverage the next generation of technology to evolve firms and professionals. Steve Cox is a chartered accountant as well as being an accomplished strategy and technology professional with over 24 years of extensive expertise in the accountancy profession. He collaborates with accounting firms, UK government, professional bodies and fintechs to ensure that the profession can effectively manage financial, compliance and human capital resource as it transitions to digital future. In 2026, Martin Bissett transformed from running a successful consultancy firm into a pivotal advisor and investor; shaping the future of the accounting profession. Bissett Group Holdings, which he founded and owns, now holds equity stakes in a dozen companies serving the profession, spanning data analytics, software solutions and digital communities for accountants and vendors alike. Martin Bissett, Founder of The Bissett Group and AIR martin@bissettgroup.com This broad portfolio reflects Martin’s evolution into a strategic backer of innovation rather than a traditional owner-operator. He still provides very select hands-on guidance, leveraging 27+ years of professional insight to help these ventures thrive. As of December 2025, the capital value of the businesses where Martin is directly involved stands at £26.5m ($35.4m). Martin’s career is historically marked by both thought leadership and tangible results. Since 1998, he has advised over 2,000 accounting firms across 44 countries, helping them collectively generate more than £500 million in new client fees. Today, Martin focuses on empowering the profession through investment and board level mentorship. He serves as an investor and board-level advisor in multiple accounting and fintech organisations, bringing them access to his network, results from his methodology architectures and strategic and revenue driven thinking on their behalf. He founded initiatives like The AIR Network, CAS Club and ProNation to build peer communities where practitioners share insights and forge partnerships. Architecting the Obelisk: Professional Services in the AI Era
© 2026 ProTRENDS® - Part of The AIR Network® -65-APPENDIX: Sources Duncan, D.S., Anderson, T. and Saviano, J. (2025) 'AI is changing the structure of consulting firms', Harvard Business Review, 10 September. Available at: https://hbr.org/ (Accessed: 17 August 2026). AI and Structural Change in Consulting and Knowledge Work Core Obelisk Article Albarran, J. (2025) 'The great restructuring: how AI is transforming knowledge work from the ground up', Jonathan Albarran, 5 October. Available at: https://jonathanalbarran.com/blog/ai-transformation-of-knowledge-work/ (Accessed: 17 August 2026). Cuofano, G. (2025) 'AI & the pyramid compression in the consulting business model', FourWeekMBA, 1 December. Available at: https://fourweekmba.com/ai-the-pyramid- compression-in-the-consulting-business-model/ (Accessed: 17 August 2026). Hinssen, P. (2025) Will AI reshape companies from pyramids into obelisks? [Video]. Available at: https://www.youtube.com/watch?v=9G88ZX8uLzE (Accessed: 17 August 2026). Starmind (2025) 'How AI is affecting the structure of consulting firms', Starmind, 9 October. Available at: https://www.starmind.com/blog/ai-consulting-pyramid-obelisk- model-transformation (Accessed: 17 August 2026). Architecting the Obelisk: Professional Services in the AI Era Big Four and AI in Accounting and Audit Business Insider (2026a) 'The Big Four's AI revolution has a problem: how junior staff will develop skills', Business Insider, 30 January. Available at: https://www.businessinsider.com/big-four-ai-agents-creating-upskilling-challenge- 2026-1 (Accessed: 17 August 2026). Business Insider (2026b) 'EY's new AI agents will be a steep learning curve for junior auditors', Business Insider, 6 April. Available at: https://www.businessinsider.com/ey- launches-ai-agent-framework-for-assurance-audit-big-four-2026-4 (Accessed: 17 August 2026). Computerworld (2026) 'The Big Four accounting firms are now hiring more AI specialists than accountants', Computerworld, 18 May. Available at: https://www.computerworld.com/article/4173296/the-big-four- accounting-firms-are-now-hiring-more-ai-specialists-than-accountants.html Accessed: 17 August 2026).
© 2026 ProTRENDS® - Part of The AIR Network® -66-Architecting the Obelisk: Professional Services in the AI Era Bramwell, J. (2025) 'Deloitte expands GenAI, agentic AI capabilities for its auditors', CPA Practice Advisor, 16 July. Available at: https://www.cpapracticeadvisor.com/2025/07/16/deloitte-expands-genai-and-agentic- ai-capabilities-for-its-auditors/164990/ (Accessed: 17 August 2026). McGregor, J. (2023) 'PwC's $1B investment will give every worker AI training and staffers access to AI tools', Forbes, 8 November. Available at: https://www.forbes.com/sites/jenamcgregor/2023/11/08/pwcs-1b- investment-will-give-every-worker-ai-training-and-staffers-access-to-ai-tools/ (Accessed: 17 August 2026). PwC US (2023) 'PwC US makes $1 billion investment to expand and scale AI capabilities', PwC US, 26 April. Available at: https://www.pwc.com/us/en/about- us/newsroom/press-releases/pwc-us-makes-billion-investment-in-ai-capabilities.html (Accessed: 17 August 2026). Bramwell, J. (2025) 'RSM US to make $1 billion investment to expand AI strategy', CPA Practice Advisor, 9 June. Available at: https://www.cpapracticeadvisor.com/2025/06/09/rsm-us-to-make-1-billion- investment-to-expand-ai-strategy/162745/ (Accessed: 17 August 2026). ICAEW (2026) 'Will 2026 be AI's year? AI adoption trends', ICAEW Insights, January. Available at: https://www.icaew.com/insights/viewpoints-on-the-news/2026/jan- 2026/will-2026-be-ais-year-ai-adoption-trends (Accessed: 17 August 2026). Mid‐Tier Accounting Firms and AI Iacone, A. (2025) 'Big Four firms roll out AI that can handle routine tasks solo', Bloomberg Tax, 24 March. Available at: https://news.bloombergtax.com/financial- accounting/big-four-firms-roll-out-ai-that-can-handle-routine-tasks-solo (Accessed: 17 August 2026). Enterprise DNA (2026) 'Deloitte and EY are deploying AI agent workforces at scale', Enterprise DNA, 29 March. Available at: https://enterprisedna.co/resources/news/deloitte-zora-ai-big-four-agentic-workforce/ (Accessed: 17 August 2026). HRreview (2025) 'Big Four accounting firms slash graduate hiring as AI takes on junior tasks', HRreview, 24 June. Available at: https://hrreview.co.uk/hr- news/recruitment/big-four-slash-graduate-hiring-ai-takes-junior-tasks/382529 (Accessed: 17 August 2026).
© 2026 ProTRENDS® - Part of The AIR Network® -67-Architecting the Obelisk: Professional Services in the AI Era Journal of Accountancy (2026) 'Structural shifts: understanding APS and institutional equity', Journal of Accountancy, March. PEHub (2026) 'Why accountancy firms are the new SaaS: the APS revolution', PEHub, February. PitchBook (2026) Private equity in professional services: valuation trends 2026. ProTRENDS® (2025) The Great Consolidation Report M&A, Private Equity, Structural Economics and APS ACCA (2026) 'FRC guidance on AI tools in audit engagements', In Practice, 22 April. Available at: https://www.accaglobal.com/gb/en/technical-activities/uk-tech/in- practice-ezine-archive/In-Practice-archive (Accessed: 17 August 2026). Financial Reporting Council (2026) Generative and agentic AI guidance. Available at: https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and- ethics/guidance/ai-in-audit/ (Accessed: 17 August 2026). Regulatory Guidance (FRC, PCAOB, UK/US) Advancetrack (2026) Accounting talent index report. Available at: https://www.advancetrack.com/accounting-talent-index/ (Accessed: 17 August 2026). Talent skills, gaps and trends The Crossing Report (2026) 'RSM and BDO are spending $2 billion on AI to target your clients. Here's your counterplay', The Crossing Report, 14 March. Available at: https://crossing.one/blog/rsm-bdo-ai-investment-small-accounting- consulting-firms-2026 (Accessed: 17 August 2026).
© 2026 ProTRENDS® - Part of The AIR Network® -67-Architecting the Obelisk: Professional Services in the AI Era Journal of Accountancy (2026) 'Structural shifts: understanding APS and institutional equity', Journal of Accountancy, March. PEHub (2026) 'Why accountancy firms are the new SaaS: the APS revolution', PEHub, February. PitchBook (2026) Private equity in professional services: valuation trends 2026. ProTRENDS® (2025) The Great Consolidation Report M&A, Private Equity, Structural Economics and APS ACCA (2026) 'FRC guidance on AI tools in audit engagements', In Practice, 22 April. Available at: https://www.accaglobal.com/gb/en/technical-activities/uk-tech/in- practice-ezine-archive/In-Practice-archive (Accessed: 17 August 2026). Financial Reporting Council (2026) Generative and agentic AI guidance. Available at: https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and- ethics/guidance/ai-in-audit/ (Accessed: 17 August 2026). Regulatory Guidance (FRC, PCAOB, UK/US) Advancetrack (2026) Accounting talent index report. Available at: https://www.advancetrack.com/accounting-talent-index/ (Accessed: 17 August 2026). Talent skills, gaps and trends The Crossing Report (2026) 'RSM and BDO are spending $2 billion on AI to target your clients. Here's your counterplay', The Crossing Report, 14 March. Available at: https://crossing.one/blog/rsm-bdo-ai-investment-small-accounting- consulting-firms-2026 (Accessed: 17 August 2026).