Is Agentic AI upending the corporate ladder? EY's Global Consulting AI Leader shares what’s coming

Key Concepts

Agentic AI: AI systems capable of independent action and decision-making, functioning as part of a workforce.
Frontier Firm: An organization actively reinventing itself to leverage AI for growth and differentiation, moving beyond simple automation.
The “Power of the And”: Combining human skills (creativity, critical thinking, domain expertise) with AI capabilities to unlock greater potential.
Blueprint for AI Native Functions: A framework for redesigning business functions to operate natively with AI, including intelligence, control, and process layers.
Mindset, Skillset, Toolset: The three essential components for successful AI adoption, with a current imbalance favoring toolset investment.
Value-Based AI Strategy: Focusing AI initiatives on areas that drive significant value creation and growth, rather than solely on cost reduction.

The Impending Shift: Managing Humans and AI Agents

The future of work is rapidly evolving, with a significant shift occurring in the role of managers. Individuals joining companies next year will likely be managing a workforce comprised not only of humans but also of increasingly powerful, though sometimes unpredictable, AI agents. This podcast episode with Dan Diasio, Global Consulting AI Leader at EY, explores this transition, focusing on moving beyond pilot projects to real-world AI impact, the necessary reskilling for the AI era, and the evolving nature of leadership in a human-AI collaborative environment. EY is participating in the Harvard Frontier Firm AI Initiative, in collaboration with Microsoft, to research and develop tools for this new organizational paradigm.

EY’s Internal Transformation: From EY.com to EY.ai

EY, a 400,000-person organization with a century of history, recognized the transformative potential of AI following the emergence of ChatGPT. Unlike previous AI iterations focused on data science teams generating insights, this new wave of AI impacts every corner of the business. This realization prompted the creation of “EY.ai,” symbolizing a fundamental rescale and rethink of the entire organization. The goal wasn’t simply to “turn on” AI, but to drive its systemic integration across all operations. This involved a significant investment – over $1 billion – in people, processes, and technology.

The Threat to Consulting & The Underrated Knowledge Worker

The advent of Large Language Models (LLMs) has sparked concerns about the future of knowledge work, with some fearing the devaluation of expertise as the “cost of knowledge approaches zero.” However, Diasio argues that the knowledge worker is profoundly underrated in this new landscape. While AI can easily produce “good” outputs, it often leads to commoditization. True differentiation requires combining AI with uniquely human skills: creativity, critical thinking, systems thinking, and deep domain expertise – what EY refers to as “AI and something.” The role of the consultant is evolving from content creation to becoming a “creator,” leveraging AI agents to handle the more routine tasks.

Becoming a Frontier Firm: A Four-Pillar Approach

Diasio outlines four key areas of focus for EY’s transformation into a “Frontier Firm”:

Enterprise Scale AI Agendas: Moving beyond experimentation to implement AI solutions across the organization for clients.
AI-Powered Value Delivery: Infusing AI into all client service offerings to enhance value.
Commercial Model Innovation: Breaking away from the traditional effort-based billing model to explore new AI-driven pricing structures.
Workforce Empowerment: Investing in training, tooling, and enablement to equip employees with the skills needed to thrive in an AI-driven environment.

The “Master Class” & The Limits of AI-Generated Sameness

EY developed an internal “master class” to familiarize clients with AI’s capabilities. Participants used AI to design new snack products, demonstrating the technology’s potential for innovation. However, analysis of hundreds of these AI-generated products revealed a striking sameness – a proliferation of matcha and monk fruit-based items. This highlighted a crucial point: AI excels at producing good results, but it struggles with true originality. It raises the floor of quality but doesn’t necessarily raise the ceiling.

The Three Pillars of Successful AI Adoption: Mindset, Skillset, Toolset

While companies have heavily invested in the “toolset” (AI technologies), Diasio emphasizes the critical need for investment in “mindset” and “skillset.” Successful enterprise transformation begins with a clear intent – are you simply automating existing processes, or are you reinventing the way you work? A shift towards a growth agenda, rather than solely focusing on productivity gains, is essential.

The Rise of Agentic AI & The Future of Management

The introduction of agentic AI – AI systems capable of independent action – is accelerating this transformation. Diasio predicts that new hires will be managers from day one, overseeing a workforce of both humans and AI agents. The sequence of work should be human-agent-human, with humans providing context, critical evaluation, and strategic direction. This necessitates a focus on developing delegation skills and the ability to effectively manage and control AI agents.

The Blueprint for AI Native Functions

EY has developed a “blueprint” for redesigning business functions to operate natively with AI. This blueprint includes:

Connectivity to Existing Sources: Integrating AI with existing data and systems.
AI Native Platform: A platform designed specifically for AI-driven processes.
Intelligence Layer: The core AI engine.
Control Layer: Managing agent autonomy and access.
New Process Design: Redefining workflows to leverage AI capabilities.

The Importance of Context & The AI Native Advantage

Legacy firms possess valuable assets, including scale, data flywheels (organizational nuance and context), customer reach, and established contracts. However, they face competition from AI-native startups, which are often more agile and unburdened by legacy systems. The key to success lies in leveraging existing context and data to differentiate AI-driven solutions.

Upskilling the Workforce: The “Power of the And”

EY has launched a comprehensive upskilling program for its employees, focusing on helping them find their “and” – combining their domain expertise with AI capabilities. This initiative has boosted employee engagement by empowering them to shape AI’s impact rather than feeling threatened by it.

A Call to Strategic Leadership & Reinvention

Diasio emphasizes the need for strategic leadership to drive AI transformation. Companies should focus on reinventing core functions, rather than simply applying AI to existing processes. He advocates for developing a clear point of view on how AI will create value and communicating that vision to investors and employees.

Conclusion: A New Era of Work

The integration of AI, particularly agentic AI, represents a fundamental shift in the nature of work. Success requires a holistic approach that encompasses mindset, skillset, and toolset, with a strong emphasis on human creativity, critical thinking, and strategic leadership. The future belongs to organizations that embrace this transformation and empower their employees to thrive in a human-AI collaborative environment. This is not simply about automation; it’s about unlocking new possibilities and creating a new economy powered by the synergy of human intelligence and artificial intelligence.