Professional services lead the way in AI adoption as labour market tightens
According to RSM UK’s latest Economic Outlook for Q3 2025, the UK was the best performing G7 economy in the first half of 2025, despite low consumer confidence and stagnant business investment.
However, growth looks more challenging moving forward, with inflation set to hit 4% and wage growth slowing. There’s also the added risk that speculation around Autumn Budget tax rises could depress confidence further.
Chloe Austin, director and senior analyst in professional and business services at leading audit, tax and consulting firm RSM UK, looks at:
- Why the current labour market and the impact of artificial intelligence (AI) are encouraging professional and business services (PBS) firms to rethink traditional workforce models;
- The role of the Industrial Strategy to promote AI and drive sector growth; and
- The importance of enhanced tax reliefs in the Autumn Budget to accelerate AI adoption and improve efficiencies.
Chloe comments: “A weakening labour market is affecting availability of jobs and pay growth in some sectors more than others. PBS firms have been seeing increased salary costs for a while now, which combined with the increasing use of AI, means many have started to consider their workforce models. The Industrial Strategy identifies PBS as a key driver of UK productivity, with the aim of doubling business investment in the sector by 2035.
“PBS firms are therefore increasingly integrating AI to enhance efficiencies and client delivery, while also helping clients in other sectors become more productive and resilient. This presents both challenges and opportunities in terms of workforce composition, leadership alignment and long-term competitiveness. In a squeezed labour market, automation through AI is streamlining routine tasks such as document drafting, research and data processing, freeing up senior professionals to focus on high-value, strategic work. However, this also raises questions about the sustainability of traditional PBS workforce structures.
“With fewer entry-level roles, firms must reconsider how they develop and retain talent, with greater focus now on quality over quantity. As a result, businesses are re-evaluating their recruitment strategies and prioritising candidates with strong AI and data literacy skills, while offering junior staff earlier exposure to complex, high-impact work. Not only does this help to retain top talent and accelerate professional development, it also helps to build a more resilient and adaptable workforce.
Firms that invest in AI and align their leadership around a coherent digital strategy are likely to gain a competitive edge including new service offerings, improved client outcomes and enhanced profitability.”
She added: “However, this requires a deliberate approach to technology adoption, workforce planning and change management. To support this transformation, the Industrial Strategy sets out a £150m package to boost AI and tech adoption in the PBS sector, including the expansion of the Made Smarter Adoption programme. This reinforces the sector’s role in driving national productivity but also highlights the need for enhanced tax reliefs in the Autumn Budget to incentivise long-term investment in digital infrastructure, upskilling and innovation. Targeted support, including expansion of R&D tax credits and capital allowances, would enable the sector to scale AI adoption with more confidence and retain the UK’s position as a global leader in PBS.”