How professional services must adapt to the new US political and economic landscape
John Weisel | The Antares Company
The professional services industry will be immediately impacted by the anticipated changes from the new US administration. Few professional services organizations are prepared for the opportunity presented. However, emerging technologies offer powerful solutions to address these challenges and capitalize on new market opportunities. The objective remains to achieve sustainable growth delivered profitably.
The professional services sector faces transformative market conditions. The changing political landscape in Washington will fundamentally reshape both the economy and the structure of professional service demand and client services delivery. These changes present significant implications for law practices, accounting firms, management consultancies, and specialized advisory organizations.
U.S. economic policy will reshape professional services demand
Market indicators point to a substantial realignment of professional services demand. Evidence from legal, accounting, and advisory sectors suggests accelerating change in how organizations procure and utilize professional expertise. This evolution reflects broader structural changes in capital flows, regulatory requirements, and compliance requirements.
Key market factors affecting professional services firms will continue to evolve:
Global capital flows to the US will increase materially. The US will become the destination for foreign capital. Expected regulatory and tax relief will encourage growth.
Evidence of this is present today in private investment and proprietary trading markets.
Inflation and interest rates are expected to moderate, thereby encouraging economic growth. This should result in higher levels of business confidence supporting increased capital investment in the industry and increased discretionary spending by clients on services across all industries.
Regulatory modernization affects compliance and reporting requirements, with AI-powered monitoring, measurement, and automated reporting systems emerging as critical and available tools.
Tax policy restructuring will demand new advisory services approaches, supported by advanced tax modeling software, reporting, and predictive analytics. In a rules-based business, the application of artificial intelligence is the most open to use.
Enhanced focus on operational efficiency and cost management, enabled by process automation and intelligent workflow systems.
Labor and skill shortages across most markets. The labor supply pool in the US to achieve business growth is inadequate today. This issue will intersect with emerging approaches to immigration.
Market demand for integrated service delivery models, facilitated by cloud-based collaboration platforms and digital service delivery infrastructure.
Evolution of technology-enabled professional services, incorporating machine learning, natural language processing, and advanced analytics shifting from legacy people-based to expert knowledge-based business models.
Cross-disciplinary integration becomes critical for client value
Professional services clients are fundamentally reevaluating their external advisory relationships. Organizations increasingly demand integrated solutions that span traditional professional service boundaries, with technology serving as the critical enabler of this integration.
Service integration represents a primary strategic imperative. While specialized expertise remains essential, clients seek providers capable of delivering comprehensive solutions across legal, accounting, and advisory domains. Modern integration platforms and API-driven architectures make this cross disciplinary collaboration more feasible than ever before. The emergence of artificial intelligence will accelerate this transition.
Value demonstration has become paramount across all professional services sectors. Clients demand transparent pricing models, measurable outcomes, and demonstrable return on professional services investment. These requirements necessitate new approaches to service delivery and client engagement. Digital dashboards, real-time reporting tools, and advanced analytics platforms now enable unprecedented visibility into service delivery and its value creation. Legacy market and client value propositions have seen their best days.
Traditional service delivery models are becoming obsolete
Success in the evolving professional services landscape depends on several critical factors: principally technology- and talent-driven.
Traditional service delivery models require comprehensive reimagination. Clients increasingly reject siloed professional services approaches, demanding integrated solutions that combine legal, accounting, and advisory expertise. This shift requires a fundamental restructuring of professional service organizations, with technology serving as an enabler rather than the primary driver of change.
Technology deployment and integration have become essential. From legal practice management to audit automation and advisory services delivery, technology capabilities determine market competitiveness. However, technology must enhance rather than replace the core professional expertise that clients value. Organizations must develop or acquire sophisticated technical capabilities while maintaining their focus on high-value professional judgment and client relationships.
Professional talent models face unprecedented change. Leadership needs are at the center of this situation. The relationship between professional services firms and their practitioners continues to evolve, requiring new approaches to professional development, work-life integration, and career development and progression. While digital tools can enable more flexible ways of working, the fundamental importance of mentorship, apprenticeship, and professional judgment remains paramount.
Success demands immediate strategic repositioning
Professional services leadership must prioritize several demands concurrently. The sector will experience significant change across all segments. Technology capabilities will play a critical role in determining market winners and losers. New entrants will increasingly emerge challenging the current industry business approaches.
We expect to see a move from large service providers to expert service providers. Greater value will be delivered with fewer professionals. Talent will be the most critical component of success but the battle formations have changed. The right talent is increasingly difficult to place as they demand an entrepreneurial, continuous learning and development, and an economically rewarding business environment.
The playbook for success should address a number of requirements to achieve continued market-differentiated growth and profitability. Capital flows into the industry will continue to accelerate as business services are a priority segment for many investors. Effective execution is critical.
The next page has a useful twelve-point strategic self-assessment checklist for all professional firm executives. Are you considering the following?
Do not lose sight of the size of the market and the expected trajectory of service demand growth. The market is extremely large and growing. Opportunities abound. That said, the legacy professional services industry must change as the economic value equation is not sustainable.
The rapid change of the professional services sector through 2025 represents both challenges and opportunities. Organizations that successfully integrate cross-disciplinary capabilities, embrace technological advancement, and reimagine their business and talent models will emerge as market leaders, while those maintaining traditional approaches risk irrelevance.
The window for strategic positioning is narrow— firms that take decisive action now to build integrated capabilities and enhance their technology capabilities will capture disproportionate market share and establish sustainable competitive advantages as the industry evolves. Time is of the essence.
John Weisel serves as President of Antares Company, a strategic professional services organization with a focus on the professional services industry. His experience encompasses over 40 years of advisory services to professional services organizations across multiple market cycles globally.
john.weisel@theantarescompany.com
