What They Did
PwC increased productivity across its audit, tax, and consulting functions by embedding generative AI into internal workflows and client delivery processes. These capabilities enabled automation of repetitive tasks, faster report generation, and more scalable advisory services (PwC Press Release, 2023; Forbes, 2025).
How They Did It
- Announced a $1 billion investment in generative AI in 2023, forming partnerships with OpenAI and Microsoft to integrate tools like ChatGPT into their services (PwC Press Release, 2023).
- Rolled out a secure internal version of ChatGPT, known as “ChatPwC,” for use across the firm (Forbes, 2025).
- Applied AI to audit, tax, and consulting tasks, including document review, compliance reporting, and drafting client deliverables (Business Insider, 2025).
- PwC has publicly emphasised the importance of human oversight when using generative AI but has not disclosed specific details about internal training efforts (PwC Press Release, 2023).
- Streamlined back-office operations by automating knowledge retrieval, summarisation, and client response preparation (PwC Press Release, 2023).
Why It Matters
PwC’s shift shows how professional services firms can operationalise generative AI to enhance delivery and reduce manual workloads. The ability to produce work faster and more consistently, with fewer staff, marks a major change in how knowledge work is structured (Forbes, 2025; Business Insider, 2025).
Public Response
- In May 2025, PwC announced the layoff of approximately 1,500 employees in the United States, representing about 2% of its workforce. The firm attributed the cuts to historically low attrition and the need to realign internal capacity with evolving client needs. Most layoffs affected the audit and tax divisions. While PwC did not directly attribute the layoffs to AI, the firm has committed over $1 billion to generative AI initiatives, including the development of internal tools such as ChatPwC. This suggests the workforce shift is part of a broader strategy to reallocate resources and embed AI more deeply into service delivery (Fortune, 15 May 2025; CFO Dive, 08 May 2025; Forbes, 07 May 2025).
- Media coverage highlighted the timing of the layoffs relative to PwC’s AI adoption and efficiency gains (Forbes, 2025; Business Insider, 2025).
- While PwC did not officially link the layoffs to AI, analysts widely interpreted the cuts as a consequence of AI-driven optimisation.
- The announcement sparked debate about the role of AI in displacing early-career professionals and reshaping firm hierarchies (Wall Street Journal, 2024; Business Insider, 2025).
Adoption Type(s)
Transformative AI
The integration of generative AI is altering the firm’s workforce model and operating assumptions. PwC is reducing headcount while scaling delivery, indicating a long-term shift in how it defines value and capacity (Financial Times, 2025; Wall Street Journal, 2024).
Enterprise-wide AI
AI use is not confined to a single business unit. ChatPwC and other tools are deployed across multiple service lines and internal operations, including legal, HR, and client response (Forbes, 2025; Business Insider, 2025).
Sources
- PwC Press Release – $1B Generative AI Investment (May 2023):https://www.pwc.com/us/en/media-center/press-releases/2023/pwc-us-makes-1-billion-investment-to-expand-and-scale-ai-capabilities.html
- Forbes – ChatGPT’s Largest Enterprise User Cuts Workforce by 1,500 Jobs (07 May 2025):https://www.forbes.com/sites/chriswestfall/2025/05/07/chatgpts-largest-enterprise-user-pwc-cuts-workforce-by-1500-jobs/
- Financial Times – PwC to Slash 1,500 US Jobs (May 2025):https://www.ft.com/content/1f9be9f0-2905-4a46-8752-5630e507eb31
- Business Insider – Big Four Layoffs and AI Threat (May 2025):https://www.businessinsider.com/big-four-consulting-ai-threat-jobs-ey-deloitte-kpmg-pwc-2025-5
- Wall Street Journal – PwC to Cut 1,800 Jobs in Restructuring (Sept 2024):https://www.wsj.com/articles/pwc-laying-off-1-800-employees-plans-restructuring-of-products-business-b5dfe7c1
- Fortune – PwC cut 1,500 jobs. It shows the mini-boom in accounting may be ending (15 May 2025):https://fortune.com/2025/05/15/pwc-cut-1500-jobs-shows-mini-boom-accounting-ending
- CFO Dive – PwC cuts 2% of US workforce citing low attrition (08 May 2025):https://www.cfodive.com/news/pwc-cuts-2-us-workforce-citing-historically-low-attrition-accounting-shortage/747563/
- PwC Strategy& – An Approach to the AI Journey Design (2025):https://cloud.email.strategyand.pwc.com/ai-journey
Addendum: Reflecting on PwC’s AI Strategy Through Its Own Consulting Lens
PwC’s public AI efforts, including a $1 billion investment in generative AI and a round of workforce reductions, point to a major operational shift. However, the specifics of how PwC is managing that shift internally remain largely undocumented. This raises several important questions about the depth, structure, and governance of its AI transformation.
Questions Raised by the Main Case
- How systematic is PwC’s internal AI transformation? Is there a structured roadmap that prioritises use cases and measures outcomes, or is the adoption happening more organically?
- How are business units engaged? Are stakeholders across the firm participating in shaping the AI agenda and defining expected value?
- What operating model supports this change? Has PwC adopted a centralised team, a federated model, or a hybrid approach to AI delivery and oversight?
- What safeguards and governance are in place? How is PwC addressing responsible AI, risk, and compliance internally?
Strategy&’s AI Journey Framework: A Possible Lens
While the Strategy& document does not describe PwC’s internal operations, it presents a 9-step AI journey framework developed for clients. This approach directly addresses the questions above and outlines the components of a mature AI programme (PwC Strategy&, 2025):
- Readiness assessments to understand capability gaps
- Use case cataloguing and evaluation across feasibility and value
- Business casing to link AI to measurable outcomes
- Sequenced implementation waves and executive engagement
- Operating model designs including Centres of Excellence
- Responsible AI frameworks with governance, risk controls, and compliance measures
- Scalable cloud-based architecture with flexibility in LLM sourcing
Why This Matters
This contrast between what PwC is doing publicly and what it recommends to clients invites reflection. If PwC is following this framework internally, it has yet to share those details. If it is not, it raises a broader question about the consistency between advisory strategy and operational reality.
The Strategy& framework can serve as a useful benchmark. It gives us a way to think more critically about the shape and structure of enterprise AI transformation, including within organisations like PwC.
Additional Source
PwC Strategy& – An Approach to the AI Journey Design (2025) Available at: https://cloud.email.strategyand.pwc.com/ai-journey
