How This Consulting Giant Is Weaponizing AI

Editor's note: Every Friday, we showcase a featured topic from our YouTube show, Altimetry Authority.

This week, we tackle themes from an upcoming episode, which airs Tuesday at 8 a.m. Eastern time.

Read on below to learn about a consulting giant that's "all in" on AI... and what it means for the business going forward...

Most companies are still figuring out what to do with generative AI...

But Accenture (ACN) has already trained 500,000 employees to wield it.

The consulting giant is deploying this technology at every level of its organization. Its goal is to eliminate low-value tasks so its workforce can focus on more valuable activities.

Clients are catching on fast. In just six months, Accenture booked $2.6 billion in AI-related sales. That's more than 8 times what it pulled in during the same period two years ago.

Some folks fear AI will commoditize the consulting industry, which relies on human expertise and knowledge. The thought is that knowledge won't be scarce anymore... meaning it'll be a lot easier to compete within consulting.

But Accenture believes the opposite...

It's turning AI into a differentiator.

In just two and a half years, Accenture has restructured its operations around generative-AI tech...

According to CEO Julie Sweet, two-thirds of its U.K. staff alone are already using AI in client work.

Consultants are automating tasks like PowerPoint slide creation, giving them more time to mentor junior staff and shadow senior leaders.

Younger members should have a faster path to higher-level roles... which also makes them more profitable to the company.

This company-wide retooling has integrated AI into Accenture's very DNA.

And as the company's accelerated sales show, it's already translating to serious growth.

It's no surprise, then, that our Altimeter tool shows Accenture is stronger than ever...

Uniform return on assets ("ROA") was already 45% in 2020... almost 4 times the market average.

It spiked to 63% last year thanks to the early stages of the AI transformation. And it's expected to keep rising to 68% by 2026.

Check it out...

As you can see, Accenture's impressive returns are taking off in a big way. It's already a leader in consulting – the next-biggest peer, Tata Consultancy (TCS.NS), booked returns around 49% last year.

AI is only helping Accenture hang on to that top title... and expand its lead. No wonder the Altimeter gives this business an "A" grade for Earning Power...

Accenture has figured out how to do more with less...

And it's making better use of its remaining younger workforce. This consulting winner is looking better by the day.

But despite its smart integration of AI, investors aren't giving Accenture enough credit. Shares are down more than 15% this year.

We've seen this lesson time and again. Folks don't understand how to find the real winners and losers of AI adoption.

In Accenture's case... the company is already making money from AI. It's building on an already strong business model. And it should keep outperforming peers.

The market is missing a standout AI opportunity. This is the exact type of business investors should be buying.

Regards,

Joel Litman
June 27, 2025

P.S. We'll dive deeper into Accenture in Tuesday's episode of Altimetry Authority. New episodes air every Tuesday and Friday at 8 a.m. Eastern time.

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