THE SPRINT TO AI

New research shows client service firms are scrambling to adopt AI — but relying on bloated ‘'Frankenstacks’' and the wrong tools is blocking success.

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THE AI OVERWHELM IS REAL

“Flying by the seat of my pants.” That’s how most client service firms describe their approach to AI. The hype, the pace of change, and the sheer amount of fluff circulating online make it hard to know which tech to invest in, and how to keep AI-giddy clients happy right now.

We asked 1000+ senior leaders from client service firms about their struggles with ‘Frankenstacks’ (bloated tech stacks), AI hype, and how they’re cashing in on the next big digital gold rush. Hold on to your undies, because you’re about to learn the truth about the silent saboteur of AI success — and how to fix it.

MESSY TECH MEANS MISSED OPPORTUNITIES

Half the senior leaders we spoke to confirmed that, in the past 12 months, they’ve missed out on client work or revenue as a direct result of their tech. Ouch.

50% blame their tech stack for lost revenue or client work

The results also show that tools are falling short of performing all the necessary tasks. There’s two possible causes for this.

Number one: they haven’t moved on from basic task management tools. Which used to work fine, but now their business is more evolved, they can’t handle the real complexity of client work.

Number two: they’ve inadvertently built their business on a ‘Frankenstack’, a.k.a. layers of scattered software duct-taped together to get the job done. This usually starts out as one generic tool, which eventually becomes the beating heart of the monster, with a hodge podge of point solutions tacked on at the sides.

CLIENTS WANT YOUR WISDOM ON AI (EVEN IF YOU HAVE NONE)

Most businesses now use AI in at least some capacity. And clients know it. So they expect faster answers, sharper insights, and more personalised experiences — all without sacrificing accuracy or trust. They want proactive solutions, not just reactive services. And they want outputs to be cheaper, better, and faster.

This makes winning work (and keeping it) harder than ever. Plus, it seems that as expectations rise, budgets are falling, and there’s more pressure to do the same or more work for less.

With 33% saying their clients are more confident using AI themselves, there’s also a new onus on project teams to demonstrate how they add value. And often, that means acting as a pseudo-AI consultancy service. Hardly anyone feels fully equipped to handle these new demands though, representing both a risk and an emerging opportunity for client service firms.

35% say clients want help leveraging AI — but over half (52%) feel ill-equipped to deliver it.

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DATA BLACK HOLES ARE A GROWING CONCERN

In order to assess AI-readiness, we asked respondents to evaluate how their current tools stack up when it comes to managing projects, people, profits, and more. And the verdict ain’t good.

Over 9 in 10 (92%) respondents say their current tech is falling short, with data management/reporting (50%), resource management (42%), and integrating third party tools (40%) most commonly cited as the top failings.

The reason? Like we said, most tools can’t cope with the complex realities of client project delivery that go far beyond basic task management. The response? Pay for yet another tool to fill the gap. Our findings prove it: a whopping 58% confirmed they’re now using 3-5 separate tools to get the job done. Over time, this keeps adding to the ‘Frankenstack’ — making it even harder to untangle.

Only 1% can manage data, projects, profits, and resources in one tool

When all these tools don’t connect, the data becomes fragmented, creating blind spots that hide valuable insights and opportunities. Generic tools only make this worse, as they struggle with advanced reporting needs.

The true power of AI lies in working with unified operational and financial data, enabling smarter forecasting and better decision-making. But every additional tool you add scatters that data further, pushing more information into the abyss instead of unlocking its value.

50% said data management is the biggest problem with their tech

THE REAL COST OF THE REPORTING HAMSTER WHEEL

1. THE EFFICIENCY COST

Inefficiencies within teams mean lost revenue downstream. Just one example: tools that don’t enable easy data and reporting cause highly skilled, expensive team members to spend more time on tasks that don’t earn you a dime.

57% spend more time in the reporting hamster wheel vs. doing the work

2. THE HUMAN COST

Chasing down missing data and fighting clunky reporting tools traps teams in a hamster wheel that never stops spinning. Deadlines slip, projects derail, and frustration builds. The result? Stress, burnout, and eventually attrition. It’s not just annoying — it’s a serious retention risk.

3. THE CLIENT COST

The findings show that software gaps derail project timelines (33%), slow down reporting (30%), and even make it harder to manage client feedback (29%). And the more tools you pile on, the worse the client experience becomes.

With AI, you only get out what you put in. If your tech stack is a mess, adding AI on top is like putting lipstick on a pig. It’ll still be chaos, only amplified, or potentially even worse as you layer AI on top of a messy foundation.

“Using AI to supercharge broken tech is like putting lipstick on a pig. It’ll still be chaos, but amplified”

GREAT EXPECTAITIONS: TIME, MONEY, AND FORECASTING

AI became widely available before anyone really knew what to use it for. Now it’s here, everyone’s scrambling to figure out the best ways to apply it, including in client services. But here’s our three big takeaways.

  1. TIME IS ON EVERYONE’S MIND
    People want AI to give them back more time and make things go faster. Whether that’s speeding up client project delivery times, or automating repetitive, low-value tasks, this is a big priority.

  2. MONEY COMES NEXT

    Clients want help cutting costs, so it stands to reason that businesses do too. Especially when it comes to tracking spend and assessing who, of the available team, makes most financial sense to assign to any given task. All this helps ensure profitability downstream.

  3. HUMANS STILL WANT TO HANDLE HUMANS

    It's really interesting to see that managing clients is the area respondents least want help with. This indicates that there are still things that humans want and need to handle, including other humans.

But the results below show they’re still worried too, and data emerges again as the biggest concern. Why? Because, according to experts, AI doesn’t yet get an A in math — even the very latest iterations are still slipping up.

Regardless of which LLM you use, once AI goes beyond basic addition and subtraction, it’s prone to making mistakes (and hey, who likes long division, right?). This is noteworthy for any general billing or forecasting needs, but particularly for accountancy firms, data-led professional services.

They’re also concerned whether AI is even compatible with their current tool(s) — which makes sense given they don’t think they’re working right as is.

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THE AI TRANSPARENCY GAP

Even though companies are now paying for premium AI tools, many individuals still feel that using them feels a bit like cheating. Plus, many agencies who specifically sell creative services don’t want their talent to be attributed to AI.

Perhaps that’s why 43% said they only disclose when they use AI if a client specifically asks about it — or for fear this will spark demands for a slimmed down bill.

This points to an AI transparency gap. Businesses feel pressure to be seen to be using AI and offer strategic guidance about it. But when it comes to using it to save time, generate ideas, or cut costs, sometimes it’s just simpler to say nothing to clients. It’s a double edged sword.

43% only disclose AI if specifically asked, WHILE 39% have exaggerated their AI skills and capabilities to clients

WHO’S AN AI SCEPTIC, AND WHO’S AN EARLY ADOPTER?

It’s promising (and not surprising) to see that 37% are feeling optimistic about AI, with 19% hopeful that it can fix gaps in their existing software.

Optimism about AI is cross-generational. Younger cohorts associate it with empowerment and self-efficacy — they want to master AI. Middle-aged professionals are more results-driven, focusing on AI as a fix for existing pain points. Older respondents need reassurance about ethical impacts, risks, and real-world benefits.

“I’m hoping it can fix the gaps in my current software” increases steadily from 18–24 to 45–54, suggesting that older professionals are more jaded by their current tools, and view AI as a welcome potential solution. Meanwhile, younger professionals are more bugged by hardware, with 15% of the 18-24 group citing they just wish the printer would work properly.

“AI? I just wish the printer would work properly” - Gen Z

WANT A PIECE OF THE AI PIE?
DO THIS.

Don’t panic, you don’t have to dismantle your entire operating system before you can get stuck in with AI. But it would be a mistake to jump in without first strengthening your tech foundation.

Especially when you consider most businesses don’t think their existing software is going to serve them, even in the medium term.

Here’s three tips:

  1. FOCUS ON TOOL CONSOLIDATION

    First address your operational backbone. Start consolidating tools and get software purpose-built for the type of work you do, from project management, to resource management, to financial management. Data management and reporting capabilities are also critical.

  2. BUY TECH LIKE YOU’D BUY KIDS’ CLOTHES

    Be judicious. Choose tools in the same way you’d buy clothes for a toddler — anticipating growth and avoiding being caught out after 6 months. This is key to futureproofing your spend.

  3. BEWARE OF THE FALSE ECONOMY OF THE ‘FRANKENSTACK’

    Businesses often avoid changing systems because they’re worried about costs. But if you’re paying for 3-5 tools that don’t play ball together, this thinking doesn’t add up. Not to mention, the opportunity cost of staying in a setup that you know isn’t doing right by your business. Switching is easier than you might think, and it can be the first step in your AI journey.

TIME TO SYNC OR SINK

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INSIDE THE SPRINT TO AI

Get the full story of AI in client work, with no-nonsense AI insights from 1000+ senior leaders — the wins, the setbacks, and the pressures reshaping their businesses.

The Sprint to AI cuts through the hype to reveal what’s really happening with teams like yours — and where the opportunities lie.

Download the full report