$8.5 billion consulting firm Grant Thornton is tying US partner bonuses to AI use

In a bold move to reshape its operations, the mid-market consulting giant Grant Thornton is now linking partner bonuses to their effective use of artificial intelligence (AI). This initiative comes under the leadership of Tom Puthiyamadam, who took the helm as the US head of advisory after a distinguished 28-year tenure at PwC. Puthiyamadam's vision is clear: to establish Grant Thornton as a dominant player in the middle market, which he believes is crucial for driving growth and innovation. He has introduced new performance metrics for partners, emphasizing the adoption of AI as a core component of their annual evaluations. This strategy, implemented in January during Puthiyamadam's first full financial year, sets forth four strategic goals that partners must meet, alongside traditional financial targets. The emphasis on AI is unmistakable. Puthiyamadam has made it clear that partners cannot opt out of demonstrating their proficiency with AI tools. While revenue growth remains important, failure to engage with AI could jeopardize their bonuses. "I am aligning an incentive, as in your year-end bonus, on whether or not you were able to clearly demonstrate how you adopted the AI tools we provided you in your delivery and in your sales process," he stated. As the consulting industry undergoes significant transformation driven by AI, firms like KPMG have also adopted similar incentive structures to foster tech integration among their staff. Grant Thornton's approach aims to motivate its senior partners first, hoping that their enthusiasm will trickle down to mid-level managers and junior employees, who are already expected to be AI-savvy upon joining. Puthiyamadam recognizes the challenges posed by the "frozen middle"—mid-level managers who might resist new technologies. By applying pressure to senior leaders, he anticipates that the entire organization will embrace the AI strategy. He believes that if partners feel the urgency, the momentum will naturally influence the broader workforce. His ambition is to elevate Grant Thornton into a leading position within the competitive landscape of consulting, which includes formidable rivals such as McKinsey and the Big Four. In his inaugural year, the advisory segment has already seen considerable expansion, growing from a $680 million domestic business to a $1.5 billion multinational practice. With a focus on technology and strategic acquisitions, Puthiyamadam is reshaping the firm's capabilities and investing heavily in AI. This includes not only enhancing their digital tools but also bolstering their team with talent from prestigious competitors. His goal is to enhance the firm's efficiency and client service capacity significantly, stating, "When I have a better mousetrap, I will take market share." As Grant Thornton charts this course, it aims to redefine its identity in the consulting world, striving to be recognized as a standout player in its segment, much like its larger counterparts in the industry.