Thomson Reuters warns of AI execution gap in firms

Thomson Reuters has published research on the cost to professional services firms of failing to implement artificial intelligence effectively. The study covers legal, tax, audit, accounting, compliance, risk and global trade professionals in 62 countries.

The report points to a widening gap between the broad use of AI tools and firms' ability to embed them in daily work. It found that 74% of professionals already use AI tools every week, yet 91% believe their organisations are falling short of what the technology can deliver.

According to the findings, that gap is affecting client relationships, staff retention and risk controls. In the US alone, about USD $143 billion in legal and accounting revenue is under active reconsideration as clients assess whether providers are meeting expectations on AI.

The research is based on a survey of 1,816 professionals across private practice firms and in-house corporate and government departments. Respondents worked in law, tax, audit, accounting, compliance, risk and global trade.

Client pressure

Corporate clients appear to be moving faster than many firms. The report found that 78% now view AI-enabled quality improvements as very important or essential, while only 6% believe most providers are delivering that standard.

Within the next 12 months, 32% said they would reconsider provider relationships. A third of that group said more than USD $1 million in annual work was at stake.

Steve Hasker, President and CEO, Thomson Reuters, said the market divide is becoming clearer. "We're seeing a clear divide emerge. Firms that are operationalising AI are pulling ahead. Those that aren't are starting to take on real risk, across talent, clients, and financial performance. Closing that execution gap is now a business imperative for professional firms."

Talent strain

The same disconnect is affecting recruitment and retention. Nearly one in four professionals who see a gap between what AI can do and what their organisation is delivering said they would consider leaving within two years, while 13% said they could leave within 12 months.

Access to AI tools is also becoming part of hiring decisions. The findings show that 62% of respondents said access to professional-grade AI would influence whether they accepted a new role. Among those already using such tools, nearly one in three said they would turn down a role without them.

The report also suggests some senior leaders may be underestimating the pace of that pressure. Almost half said meaningful talent pressure was still at least three years away.

Shadow use

Alongside client and staffing concerns, the study points to growing use of unsanctioned AI tools inside firms. One third of lawyers, accountants and compliance professionals said they use AI that their organisation has not approved.

That figure rose to 41% among respondents who said their organisation was moving too slowly on AI. The pattern creates risks that firms cannot easily monitor or control.

The survey also highlights what professionals say they need from these systems. It found that 96% said AI tools must safeguard confidential data, 94% said they require verified authoritative content, and 90% said outputs must be explainable and defensible.

Yet 41% said they do not have access to tools that meet those standards. The report argues that this shortfall helps explain why employees are turning to tools outside formal company approval processes.

Hasker said the issue is not simply adoption, but trust and accountability in fields where errors can carry legal or regulatory consequences.

"Not all AI is created equal. In professions where there is real liability, the standard has to be much higher. When outputs shape legal judgments, regulatory filings, or client advice, 'almost right' isn't good enough. That's why we build what we call Fiduciary-Grade AI, technology professionals can verify, trust, and ultimately stand behind," he said.

According to the findings, 35% of respondents said their organisations' AI ambitions were not reflected in day-to-day work. Nearly one in five said their organisation still lacked a clear strategy.

The picture that emerges is of a professional services market where AI use is already common, but implementation remains uneven. For firms in legal, accounting and compliance work, the report suggests the cost of delay is increasingly being measured in lost mandates, unmanaged internal risk and staff prepared to move.