Core Insights - Generative AI is transforming the shopping experience by providing hyper-personalized suggestions and curated inspiration, shifting the competitive landscape for brands and retailers [1][2] Consumer Behavior - A global study by IBM Institute for Business Value found that 72% of consumers still shop in stores, but 45% utilize AI during their buying journeys [2] - Consumers are increasingly using AI for product research (41%), interpreting reviews (33%), and finding deals (31%) [2] - 35% of consumers still prefer visually appealing stores with no wait times, while one in three seek super apps that integrate commerce with other services [4] Retailer Adaptation - Retailers must adapt to AI-driven consumer behavior by redesigning the shopping journey to align with decision-making moments [6] - Brands should utilize AI to reduce uncertainty in the buying process and enhance customer support [6] - More than half of brand executives (54%) report challenges across channels, emphasizing the need for data readiness and testing [6] Strategic Recommendations - Brands should amplify their distinctive qualities while using AI to enhance relevance and reduce friction [6] - Investing in AI skills and partnerships is crucial, as 51% of executives cite limited AI expertise [6] Industry Implications - Understanding AI-influenced consumer behavior will become a competitive advantage in retail, differentiating brands that shape decisions from those that merely fulfill them [7]

Group 1 - Private employers added 41,000 jobs in December, indicating a modest rebound from November's losses, but the underlying economy appears fragile [1][7] - Job losses were concentrated in sectors tied to business confidence, with professional and business services losing 29,000 jobs and information services losing 12,000, negating the overall job growth [2] - Gains were seen in education and health services, leisure, and hospitality, which are more insulated from economic cycles, suggesting hiring is driven by necessity rather than economic expansion [3] Group 2 - Employment on the West Coast, particularly in tech-heavy regions like California, Oregon, and Washington, saw noticeable declines, indicating a pullback in tech and consulting job markets [4] - Large companies added only 2,000 jobs, while small and mid-sized businesses accounted for most of the net growth, reflecting cautious behavior among corporate employers [5][6] - The divergence in ADP data aligns with Federal Reserve Chair Jerome Powell's warning that official hiring data may overstate job creation, hinting at a potential quiet contraction [7][8]

Core Insights - The Hackett Group, Inc. has launched Hackett AI XPLR™ 5.0, a new platform aimed at supporting enterprise AI Centers of Excellence (AI COEs) [1] - Hackett AI XPLR™ 5.0 is designed to accelerate and enhance the identification, evaluation, and design of AI solutions tailored to specific business processes, enterprise applications, and data landscapes [1] Company Overview - The Hackett Group, Inc. is recognized as a leading consultancy in Gen AI and enterprise digital transformation [1] - The new platform is available for enterprise licensing, indicating a strategic move to expand its market reach [1]

Core Insights - Jacobs has agreed to acquire the remaining shares of PA Consulting for £1.216 billion ($1.6 billion), enhancing its position in high-value advisory and transformation sectors [1][2] - The acquisition is expected to be accretive to Jacobs' adjusted EPS within the first 12 months post-closure, which is anticipated by the end of Jacobs' fiscal 2026 second quarter [1][10] - The transaction aims to strengthen Jacobs' end-to-end asset lifecycle capabilities and expand its presence in high-growth sectors such as advanced manufacturing and life sciences [11] Transaction Details - The total upfront consideration for PA Consulting reflects a valuation of approximately £3.05 billion, equating to 13.0x expected calendar year 2025 adjusted EBITDA before synergies [2] - The deal includes £75 million in deferred consideration, payable in Jacobs' shares on the second anniversary of the transaction closing [2][7] - Jacobs plans to fund the cash portion of the upfront consideration through a combination of cash-on-hand and existing debt facilities [7] Strategic and Financial Rationale - The acquisition is expected to enhance Jacobs' ability to deliver a full asset lifecycle, positioning it as a more comprehensive partner to clients [4][5] - Full ownership of PA Consulting will allow for broader collaboration in joint bids, potentially increasing win rates for business opportunities [11] - The combined capabilities of Jacobs and PA Consulting are well-suited to meet the growing demand for comprehensive solutions in sectors like AI data centers and critical infrastructure resilience [11] Leadership Perspectives - Jacobs' CEO Bob Pragada emphasized that the acquisition marks a key milestone in their strategy to redefine the asset lifecycle and enhance margin profiles through synergies [3] - PA Consulting's CEO Christian Norris highlighted the potential for the combined expertise to empower clients in navigating complexities and seizing future opportunities [3] Expected Financial Impact - The transaction is projected to increase Jacobs' adjusted EBITDA margin post-close, with expected cost synergies of £12-15 million targeted within 24 months [11] - If Jacobs had fully owned PA Consulting for FY25, the adjusted EBITDA margin would have been 14.5%, compared to the actual margin of 13.9% [11]

Core Insights - FTI Consulting is enhancing its Forensic and Litigation Consulting segment in Asia with the appointment of Mavis Tan as Senior Managing Director, indicating a strategic investment in this area [1][5]. Group 1: Appointment and Expertise - Mavis Tan specializes in forensic accounting, dispute support, and investigations, bringing over 20 years of experience in the field [2][3]. - She previously led the forensic services practice for Greater China and North Asia at Control Risks, showcasing her leadership in high-profile investigations [2][3]. - Tan's expertise includes addressing allegations of accounting improprieties, conflicts of interest, and misappropriation of assets, which are critical areas for clients facing financial disputes [2][3]. Group 2: Strategic Importance and Growth - The addition of Tan is part of FTI Consulting's broader strategy to strengthen its leadership position in the investigations market in Asia, enhancing its global capabilities [3][5]. - FTI Consulting has recently expanded its team in Asia by adding other experts, such as Rosie Hawes, Andrew Macintosh, and Martin Tupila, indicating a commitment to multidisciplinary expertise in forensic accounting and investigations [5][6]. - The firm employs a diverse team of forensic accountants, financial experts, and data analysts to support legal teams and act as independent investigators, which enhances its service offerings [6]. Group 3: Company Overview - FTI Consulting is a leading global expert firm with over 8,100 employees across 32 countries, generating $3.70 billion in revenues during fiscal year 2024 [7].

Core Insights - FTI Consulting is enhancing its Forensic and Litigation Consulting segment in Asia with the appointment of Mavis Tan as Senior Managing Director [1][2] Group 1: Appointment and Expertise - Mavis Tan specializes in forensic accounting, dispute support, and investigations, and she has over 20 years of experience in the field [2][3] - Tan previously led the forensic services practice for Greater China and North Asia at Control Risks before rejoining FTI Consulting [2][3] - Her role will involve addressing allegations of accounting improprieties, conflicts of interest, misappropriation of assets, and regulatory circumvention [2][3] Group 2: Strategic Importance - The addition of Tan is part of FTI Consulting's strategy to strengthen its leadership in the investigations market in Asia and enhance global capabilities [3][5] - The firm has recently expanded its team in Asia with other notable hires, including Rosie Hawes, Andrew Macintosh, and Martin Tupila in Singapore [5] Group 3: Company Overview - FTI Consulting is a leading global expert firm with over 8,100 employees across 32 countries, generating $3.70 billion in revenues during fiscal year 2024 [7]

Core Insights - The Big Four professional services firms are actively integrating AI technologies both internally and for their clients, marking a significant shift in the industry towards automation and AI-driven solutions [2][10] Group 1: AI Implementation - In 2025, the Big Four firms have made substantial investments in AI and automation, with tools becoming mainstream across audit, tax, and consulting sectors [4] - Deloitte launched Zora AI, an agentic platform that provides clients with "intelligent digital workers" capable of autonomously completing tasks, and expanded generative AI features in its Omnia platform [5] - EY introduced EY.ai, providing 80,000 tax staff access to 150 AI agents for various tasks, with plans to scale to 100,000 agents by 2028 and an annual investment exceeding $1 billion in AI [6] - PwC deployed its agentic platform, agent OS, with 25,000 intelligent agents across client operations, leveraging partnerships with Salesforce, CrewAI, and AWS for AI-led growth [7] - KPMG developed KPMG Workbench in collaboration with Microsoft, connecting 50 AI agents and chatbots, with nearly 1,000 more in development [8] Group 2: Challenges and Developments - Despite advancements, the AI tools are not infallible; Deloitte faced issues in October when it agreed to partially refund the Australian government due to errors in an AI-assisted report [9] - The professional services industry is undergoing a significant transition in 2025, affecting hiring practices and operational methodologies as firms adapt to the AI landscape [10]

Core Insights - Bristol Gate Capital Partners' Q3 2025 investor letter indicates that the US Equity Strategy underperformed the S&P 500® Total Return Index this quarter, primarily due to limited exposure to the AI/TMT and Value sectors, which benefited from the Federal Reserve's rate cut [1] - Despite the underperformance, the portfolio achieved a 15% dividend growth over the past 12 months, supported by strong underlying fundamentals [1] Company-Specific Insights - Marsh & McLennan Companies, Inc. (NYSE:MMC) is highlighted as a key stock in the investor letter, with a one-month return of 2.18% and a 52-week loss of 11.79%, closing at $187.36 per share with a market capitalization of $92.111 billion as of December 30, 2025 [2] - Bristol Gate has exited its position in Marsh & McLennan due to declining global commercial insurance rates and anticipated slowdowns in consulting revenues, which are expected to hinder near-term dividend growth [3] - The company is not among the 30 most popular stocks among hedge funds, although the number of hedge fund portfolios holding Marsh & McLennan increased from 60 to 66 in the last quarter [4]

Company Overview - Resources Connection, Inc. (NASDAQ: RGP) is a professional services firm that provides on-demand consultants and project teams for companies seeking specialized expertise without the need for full-time staff [1] Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap companies to provide a broader perspective on equity markets [1]

Core Viewpoint - Accenture plc (NYSE:ACN) is gaining attention as an AI stock, with Mizuho maintaining an "Outperform" rating and a price target of $309.00 following strong fiscal Q1 2026 results that exceeded Wall Street revenue expectations due to high demand for AI-driven IT services [1] Group 1: Financial Performance - The company reported robust quarterly revenue and maintained its fiscal year 2026 revenue guidance of 2% to 5% growth in constant currency, which includes an estimated 150 basis points contribution from mergers and acquisitions and a 100 basis point headwind from Accenture Federal Services [2] - The maintained outlook is seen as a reflection of management conservatism rather than a sign of weakening business conditions, despite investor anticipation for an upward revision to guidance [3] Group 2: Market Position and Strategy - Accenture experienced its second consecutive quarter of strong bookings acceleration, addressing investor concerns for fiscal 2026, and is investing in the growing generative AI services market, which is expected to enhance its market share [4]