Apollo’s President Warns AI Is Coming For Professional Services Jobs Next

First AI came for Software, disrupting its various offshoots and sparking a brutal bear market at the start of the year before a powerful squeeze sent software stocks surging in recent weeks. Now, it’s the turn of professional services, including law firms, accountancies and consulting firms, which according to Apollo’s co-president, Scott Kleinman are likely to be the next sector to face disruption from artificial intelligence. Investors have had their worries focused on the software sector, and the extent to which AI will upend these businesses. But going forward, buyout shops should be looking at investments in professional services, Kleinman said on a panel at the SuperReturn conference in Berlin on Wednesday, according to Bloomberg. “Apologies to the lawyers, accountants, consultants in the room, but I do think that’s a place where you’re going to see a lot of pressure,” Kleinman said, noting that Apollo is now “massively underweight” software and is directing capital toward critical infrastructure and less exposed business, reflecting a defensive credit stance. Private equity shops have funneled money into professional services firms, particularly accountancies, in recent years as many have looked for new sources of cash. Cinven, for example, bought a majority stake in Grant Thornton’s UK business [...]