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Accenture expands Microsoft Copilot to 743,000 staff

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Accenture will deploy Microsoft Copilot 365 to all 743,000 employees, marking Microsoft’s largest enterprise Copilot rollout to date.

The expansion significantly strengthens Microsoft’s push to grow paid adoption of its $30-per-month AI assistant, which currently reaches only a small fraction of Microsoft 365’s enterprise base. The move builds on Accenture’s earlier deployment to 300,000 employees.

Accenture says internal surveys showed major efficiency gains, with 97% of participating employees reporting faster completion of routine tasks and over half citing substantial productivity improvements.

The agreement is a major validation for Microsoft as investors scrutinize returns on its AI investments, while Microsoft also broadens its enterprise AI ecosystem beyond OpenAI through expanded model offerings.

Accenture Forecast Miss Signals Weak IT Spending

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Accenture forecast third-quarter revenue below Wall Street expectations, reflecting continued caution among clients on large-scale IT spending.

The company expects revenue between $18.35 billion and $19.00 billion, with the midpoint slightly under analyst estimates. The outlook highlights ongoing hesitation among businesses to commit to major transformation projects amid economic uncertainty.

Enterprises are increasingly delaying or scaling back large IT investments, prioritizing cost control over expansion. This trend is affecting consulting and technology service providers that rely on long-term digital transformation contracts.

The forecast underscores broader weakness in corporate tech spending despite ongoing interest in emerging areas such as artificial intelligence.

Accenture Tops Revenue Estimates, Launches $865 Million Restructuring Amid AI Push

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Accenture reported stronger-than-expected fourth-quarter revenue on Thursday and announced a $865 million restructuring program to better align its workforce and operations with rising demand for digital and AI services.

The restructuring, set to run over six months, includes severance costs and selective divestitures, with savings to be reinvested into staff training and operational efficiency. The company recorded $615 million in charges in the fourth quarter and expects another $250 million in the November quarter.

Analysts said the plan underscores both the challenges and opportunities of the AI transition. “Accenture has a strong reskilling operation internally,” said CFRA analyst Brooks Idlet, noting the company’s focus on shifting resources toward higher-demand areas.

The Dublin-based consulting giant emphasized that it will continue hiring while phasing out roles tied to outdated skills. Its new talent strategy includes upskilling employees and using AI to improve productivity.

Accenture also faces challenges from U.S. policy shifts. President Donald Trump this month announced a $100,000 one-time fee for H-1B visas, a move that could increase labor costs for IT and consulting firms. Accenture had approvals for 1,568 H-1B beneficiaries in the first half of the year, placing it among the top 25 U.S. employers in the program. However, CEO Julie Sweet said the impact will be limited since only about 5% of its U.S. workforce is on such visas.

Other headwinds included delays and cancellations in U.S. federal contracts, which made up 8% of revenue in 2024 and trimmed growth this year by about 20 basis points.

Still, demand remains solid. Accenture booked $21.3 billion in new contracts in the quarter, a key indicator of future revenue. The company posted $17.6 billion in revenue, beating analyst estimates of $17.36 billion.

Looking ahead, Accenture forecasts full-year 2026 revenue growth of 2% to 5%, slightly below Wall Street’s expectation of 5.3%, according to LSEG data.