Grant Thornton bets on AI to revolutionize its partner bonuses

Grant Thornton Links Bonuses to AI Adoption

Tom Puthiyamadam, who leads consulting services at Grant Thornton, has introduced a new approach to evaluating the performance of the firm's partners. From now on, these partners' year-end bonuses will depend on their ability to integrate artificial intelligence (AI) into their operations. This decision marks a strategic turning point for the company.

Grant Thornton, a mid-sized consulting and accounting firm, achieved a global revenue of $8.5 billion last year. After spending 28 years at PwC, Puthiyamadam joined Grant Thornton in April 2025 with the ambition of transforming the firm into a market leader. For him, AI is a crucial lever to achieve this ambitious goal.

One year after his arrival, Puthiyamadam established new annual performance criteria. These criteria primarily target the firm's senior executives, highlighting the importance of AI in Grant Thornton's overall strategy.

New Strategic Objectives

The year-end bonuses for partners are now conditioned by their performance against four new strategic objectives. These objectives include business performance, the ability to deliver AI solutions to the market, talent development, and the use of AI in daily work.

The performance dashboard is evaluated holistically. Partners must still meet standard financial and quality targets, but AI is now an essential criterion. A partner who partially succeeds in adopting AI while increasing their revenue will have this balance taken into account. Conversely, a lack of effort to adopt AI will be problematic.

Puthiyamadam stated, "I align an incentive, like your year-end bonus, to your ability to clearly demonstrate how you have adopted the AI tools we have provided you in your delivery, in your sales process, and whether you are becoming an advocate for this rather than a laggard."

When asked by Business Insider, Grant Thornton declined to provide details on the proportion of partners' year-end bonuses that would depend on their performance against the strategic objectives.

Pressure on the Consulting Industry

AI is transforming the consulting industry, altering pricing models and talent management strategies while opening new growth opportunities. Firms are actively encouraging internal AI adoption. For example, KPMG, another major consulting firm, also uses incentives to promote AI adoption, offering cash rewards to consultants who achieve remarkable feats with this technology.

Puthiyamadam's strategic objectives are first rolled out to partners. Junior staff, often more familiar with AI, expect the technology to be integrated into their work. The challenge lies in what Puthiyamadam calls the "frozen middle," referring to mid-level managers who may resist adopting new technologies. By incentivizing partners to embrace the strategy, Puthiyamadam hopes the entire firm will follow suit.

Puthiyamadam remarked, "If I put pressure on the firm's partners, believe me, it will spread quickly."

A Vision of a "Disruptive Firm"

Puthiyamadam explained to Business Insider that he left PwC to do something different before retiring. This departure reflects a broader trend in the industry, where leaders are leaving large consulting firms for mid-sized companies or startups that offer faster growth and greater strategic influence.

He stated, "I came to GT for a reason, to act quickly and responsibly." He hopes to outpace the market and transform Grant Thornton into "the most dominant player" in the mid-market, serving clients with revenues between $500 million and $10 billion.

During his first year at the firm, the consulting business grew from a domestic operation of $680 million to a multinational consulting practice of $1.5 billion, the firm told Business Insider.

A Technology and Transaction-Focused Strategy

Grant Thornton is among the top 10 largest accounting firms globally, but its consulting arm operates in a highly competitive environment dominated by MBB and the Big Four, alongside competitors like Alvarez & Marsal, Lek Consulting, BDO, and Baker Tilly. Puthiyamadam wants Grant Thornton to be perceived as a distinct player in its segment, just as McKinsey, Accenture, and Deloitte are in theirs.

This strategy is based on two fundamental pillars: technology and transactions. Grant Thornton is investing heavily in AI capabilities while expanding its presence in transaction and transformation work, including recent acquisitions aimed at strengthening its commercial and financial due diligence capabilities.

The firm is also redefining its talent base and tools, having recently recruited nearly 40 partners from competitors, including Deloitte, KPMG, Accenture, and AlixPartners, all equipped with a "digital infrastructure."

At the same time, it is aligning its global network to foster greater collaboration.

All of this is based on a "much more aggressive business model," Puthiyamadam stated. AI can reduce unit costs, but the tools will also significantly increase the volume of clients his team can serve. "When I have a better mousetrap, I will take market share," Puthiyamadam added.