AI Threat Intensifies, Accenture Stock Price Falls to Lowest Level Since 2017

June 20 — Accenture PLC’s stock tumbled 18% on Thursday, closing at its lowest level since 2017, according to a Financial Times report. The consulting firm had cut its revenue outlook earlier, sparking investor anxiety that fast-advancing artificial intelligence (AI) is eroding its traditional IT consulting and outsourcing core business model. For the three months ended late May, Accenture booked $19.3 billion in new work, down 3% year-over-year. It now projects full-year revenue growth of no more than 4%, a reduction from its prior guidance range of 3% to 5%. The company’s market capitalization has collapsed from over $200 billion during the post-pandemic consulting boom to under $80 billion. Accenture CEO Julie Sweet said the firm is still winning enterprise AI adoption consulting contracts, but investors worry AI could lead clients to reduce reliance on human consultants or face new competition from AI startups. Sweet also noted the Middle East conflict hit the latest quarter’s revenue by $100 million more than expected and slowed decision-making by clients in other regions. To pursue new growth, Accenture is hiking its acquisition budget to $9 billion this fiscal year. On Thursday, it announced three cybersecurity-focused purchases: vulnerability assessment specialist runZero, device security firm NetRise, and a controlling stake in operational technology (OT) cybersecurity firm Dragos. The three transactions carry a combined enterprise value of $4.2 billion.