The AI Edge, 5 Strategies to Transform SMBs in Professional Services

Short-term adaptations have become long-term shifts. For small and medium-sized businesses (SMBs) in the professional services industry, these shifts are unlocking new opportunities for profitability and growth.

Far from just surviving, SMBs are showing resilience and innovation, using technology to navigate macroeconomic uncertainty and come out stronger. In fact, according to our 6th Annual Deltek Clarity Study, 87% of UK-based professional services firms plan to increase investment in AI and Cybersecurity in 2025—a clear signal that AI is no longer a luxury or an experimental tool.

But we must also acknowledge a deeper truth: our world has been fundamentally reshaped—politically, technologically, and economically—challenging businesses to rethink how they lead, innovate, and create lasting impact.

Thriving in the age of AI isn't just about adopting the latest tools. It's about leading your business with clarity, agility and purpose.

Here we share five key strategies to help SMBs in professional services make AI adoption both impactful and achievable.

1. Build a Strong Data Foundation

Before AI can deliver results, firms must manage their data accurately, efficiently and with purpose. This starts with robust cloud-based ERP systems, integrated reporting frameworks and a commitment to data maturity.

This also includes flexible process automation, smart resource management and the accurate business intelligence and reporting tools needed to measure and optimize sustainable project delivery.

Putting value on data maturity will give an organization the opportunity to use data as a guiding force, so long as the organization has goals and a clear vision of where they want the data to take them. Therefore, as economic conditions tighten organizations can focus on higher-margin work with the best working capital conversion to create value, make smarter decisions and meet clients' objectives efficiently.

2. Define AI Priorities

In professional services, your people are your product. AI should enhance, not replace, their capabilities. For SMBs, AI implementation doesn't have to be overwhelming — it starts with asking one question, how can AI help my team do more of what they're best at? Whether it's using generative AI to draft reports, automate document workflows, or enhance research, the goal is to free your experts from repetitive tasks so they can focus on high-value, client-facing work. Still, 70% of firms in our Annual Deltek Clarity Study worry they're not automating the right processes. Focus on what drives client outcomes: quicker response times, personalized services, and better insights.

3. Fulfil the demand for seasoned professionals internally

As AI handles more of the "grunt work," traditional paths to learning, where junior staff build experience 'by doing.' start to shift. For smaller firms, this presents a dilemma: How do we grow future leaders if foundational tasks are automated?

The answer lies in intentional upskilling and redesigned roles. Think internal learning programs, mentorship, and giving junior staff more meaningful work earlier with AI as a co-pilot. This accelerates learning and builds deeper capabilities faster.

For SMBs with limited hiring budgets, growing talent internally becomes even more essential. AI isn't about eliminating people, it's about creating smarter pathways for them to grow.

4. Earn and Keep Client Trust in the Age of AI

Trust is the cornerstone of every client relationship. As AI becomes more embedded in how advice is delivered and decisions are made, SMBs must be transparent, ethical and accountable in their use of it.

That means setting clear internal policies for responsible AI use, ensuring tools are explainable and free from bias, and staying ahead of evolving data regulations. Even simple steps like disclosing when AI is used in client work can go a long way in building confidence.

Clients expect innovation but not at the cost of discretion, judgment or privacy. SMBs that show they're using AI responsibly will not only protect their reputation they'll differentiate themselves as trusted advisors.

5. Compete Smarter and Grow Faster

AI isn't just about operational efficiency; it's a springboard for new offerings and smarter service delivery.

Whether personalizing client interactions, automating proposal generation, translating content in real time (using tools like Anthropic's AI) or analyzing market data to shape client strategies, AI gives smaller firms a competitive edge once reserved for the big players.

In fact, 93 % of firms in our Annual Deltek Clarity Study say they expect AI to help expand their service offerings in the next year. For SMBs, this could mean launching niche advisory services, entering new markets or scaling expertise without growing headcount.

Conclusion

In an era defined by uncertainty and rapid change, success will not come from simply adopting new technologies, but from reimagining how people, processes and purpose align in a digital world. AI shouldn't replace your most critical asset, your people, but it will redefine how they work, create value, and grow. By embracing this transformation, businesses can bring order to complexity, drive meaningful innovation, and unlock real value on a global scale.

Small and midsize businesses, in particular, have already demonstrated the resilience and adaptability needed to thrive in the global space by leveraging, rather than minimizing, their size. Now is the time to think bigger, act with purpose, and turn technological disruption into a lasting advantage.