PwC announced a sweeping reorganization of its worldwide consulting arm, aiming to tighten service lines and cut costs as artificial‑intelligence tools reshuffle client demand. The firm will merge overlapping practices, centralize talent management and introduce a new profit‑share model for senior partners. Executives say the move is essential to stay competitive in a market being redefined by AI.

The overhaul follows a year of margin pressure across professional services, where rivals such as Accenture and Deloitte have accelerated digital offerings and trimmed legacy units. PwC’s board expects the restructuring to lift consulting revenue growth to double‑digit rates by 2027, offsetting slower audit earnings and preserving its position among the Big Four.

Clients ranging from banks to energy firms have pressed for faster AI‑driven analytics, prompting PwC to invest in proprietary platforms and forge partnerships with cloud providers. The firm plans to reallocate up to $1 billion from legacy staffing to technology development, a shift that could reshape fee structures and intensify competition for high‑margin digital contracts.

Analysts view the restructuring as a defensive play that could stabilize earnings while the consulting sector wrestles with talent shortages and regulatory scrutiny over AI use. By consolidating its footprint, PwC aims to deliver clearer value propositions to shareholders and clients, a strategy that will be measured against peers’ quarterly results.