Where professional services software is heading
Two shifts are changing what firms expect from their systems. First, revenue recognition is moving out of spreadsheets. ASC 606 and IFRS 15 push firms toward percentage-of-completion recognition calculated from live project data, not reconstructed at quarter-end, so software that tracks delivery against budget produces WIP and recognition schedules as a by-product. Second, AI is moving from drafting to doing. The proposal generators and contract reviewers of the last two years are becoming agents that draft time narratives from calendar and document activity, flag scope creep before it hits margin, and prepare billing runs for a human to approve.
The pressure behind both is utilisation. With average billable utilisation at a five-year low (Service Performance Insight, 2024), firms cannot grow margin by billing more hours, so they grow it by capturing the hours they already work and cutting the non-billable admin around them. We build for that: capture time as work happens, connect it straight to billing, and let AI absorb the drafting and reconciliation that fee earners should not be doing.