AI Disrupting the Services Sector 2H 2025

Allied Advisers is pleased to present our sector update on AI Disrupting the Services Sector. Traditionally overlooked by Silicon Valley, IT and professional services are now at the center of a new wave of disruption as AI redefines how services are delivered. With trillions in enterprise value locked in legacy, low-margin service models, AI is transforming the sector by driving embedded AI engineering, automating repetitive tasks, scaling delivery, and shifting business models toward software-like profitability.

Venture investors are leaning in: firms such as General Catalyst and Thrive Capital are backing AI-enabled platforms to modernize service businesses, signaling conviction in AI’s ability to reshape service delivery at scale. At the same time, consulting giants like Deloitte, PwC, and KPMG are embracing AI across consulting, compliance, audit, and risk to reshape service delivery at scale.

The recent Massachusetts Institute of Technology report claiming “95% of AI pilots fail” has generated buzz, raising valid concerns about ROI. However, its findings have limits. Broader studies point to a far more positive trajectory, with service firms already realizing efficiency gains, cost savings, and growth.

Looking ahead, as adoption matures and firms align AI with business outcomes, the investment–ROI gap will narrow — paving the way for AI-native service platforms with scalable, high-margin growth.

At Allied Advisers, we look forward to partnering with founders and investors to navigate this exciting landscape.

Read the full report here: