Abstract
As digital technologies become increasingly sophisticated and pervasive, even industries that until recently were thought to be shielded from digitalization - such as the professional service industry - now face digital transformation. Technological developments enable new, tech-based firms to enter the professional service market and develop new business models. However, very few studies have been performed on these new types of actors, and even fewer have investigated their business models. Building on an explorative interview study in 26 tech-based professional service firms (PSFs) offering legal, management consulting, auditing, and executive search services, we provide a more detailed understanding of what innovative business models they use, and how their knowledge-base impacts their adoption and use of artificial intelligence (AI). In doing so, the chapter contributes to the theorizing of how digitalization and the increased use of AI might reshape the professional service industry with new, empirically grounded insights.
