AI Can’t Read the Room

Technology can’t read the room — it lacks instinct, context and credibility. In consulting, human judgment remains the edge clients will always seek

Startups may look flashier, but they’ve pushed us to modernise, rethink frameworks and expand our legal and financial vocabulary in powerful ways

BDO has been successful in building a credible and sustainable consulting practice — especially in the domain of tax. What does it take to build and sustain a long-term practice in this space?

Traditionally, tax practices in India were dominated by accountants working independently or through local set-ups. But post-2000, the landscape changed quite dramatically. Global firms began entering India and actively participating in the market. That shift brought about new ways of working — particularly a greater focus on advisory rather than just routine compliance.

India itself has evolved significantly over the past 30 years. We’re now able to offer much more value-added work to our clients.

So what does it take to build a practice like this? I’d say, fundamentally, it starts with getting the right people —people who want to do the right thing, who are committed to serving clients even when it’s not easy. You will always come across clients who want shortcuts or hold preconceived ideas about India. Building a sustainable practice requires a dedicated team, a clear outlook, and a focus on differentiated services that truly add value. That’s what sets a firm apart today.

Your organisation hires professionals who are at constant risk of being poached. How do you attract and retain the right talent in such a competitive, high-skill industry? What’s your attrition rate like, and how do you manage it?

Globally, there are six large players in our space, and BDO ranks fifth. I spent 13 years at EY, so I’ve seen both ends — from the largest to the fifth largest. Attrition and talent attraction are big challenges, not just for us, but across the board.

One of the key shifts is generational. The working style today doesn’t align with the old-school model. Many firms like ours were founded by people now in their 60s — people who came up in a time when using a computer was a privilege. Today’s workforce expects flexibility: working from home, informal attire, mental health support. And rightly so.

Attracting talent involves two things: offering meaningful qualitative attributes, and preparing the workforce. In our world — navigating complex legislation — it’s tough to find people who are not just qualified but also employable. Many graduates might have strong academic credentials but lack communication or practical skills.

Then there’s the competition. Start-ups today offer newly qualified accountants packages of `18 lakh per annum, while consulting firms like ours might start them at `12–13 lakh. Long term, consulting does pay off with faster growth and real increments — but it comes with hard work. Clients won’t wait for you to get back “in time”; they expect timely solutions, or they’ll go elsewhere.

The consulting culture itself takes time to adapt to. Many join us with great enthusiasm, but within a year realise it’s not for them. It’s demanding. And yes, things like family pressure, or even social media incidents —like that much-discussed episode involving EY and LinkedIn — add to the challenges.

But when you do retain and nurture talent, that’s when others notice. Look at me — I was at EY for 13 years. They invested in me, and eventually, BDO made me an offer I couldn’t refuse. That’s just how it goes. Loyalty today lasts 5 to 7 years, if you’re lucky. As a partner, I’m always looking for the next person who will stay the course.

One more thing: honesty matters. You can’t sell a rosy dream and then show them a different reality. I’ve found that this generation appreciates transparency. They respect it — and I respect them more for that.

You have 18 years of experience in the transaction advisory domain. What does it take to establish yourself in that industry?

Transaction advisory is a fairly complex domain. To understand what it takes to succeed, let me briefly explain what we do. Broadly, our job is to help clients acquire good-quality companies or assets — whether they’re buying in India or expanding overseas. So when you read that Company A has acquired Company B, there’s a lot more behind the scenes. That’s where professionals like me come in.

We start by understanding the client’s inorganic growth objectives and identifying potential targets. Once we have a shortlist, we conduct due diligence — digging into the affairs of the company to ensure there are no hidden liabilities, contingent risks, or pricing mismatches.

Once diligence is done — and the ‘marriage’ begins — my role becomes more hands-on. Alongside legal advisers, we structure the deal, advise on governance for the acquired entity, and address tax considerations. A good example is when Gokaldas Exports acquired Matrix Clothing. We were advising Gokaldas and flagged some issues that required structuring the transaction in a specific way. That’s how the deal took shape, with a lot of legal and financial documentation behind it.

After closing, another team usually steps in to manage post-deal integration. So, transaction advisory spans strategy, diligence, structuring, and integration.

To thrive here, you must be extremely detail-oriented — even a misplaced comma in a legal document can change the entire meaning. You also need to be fast, technically sharp, and commercially aware. There’s no ‘off’ switch. If a client in the US calls at 1 am, you pick up — because that’s when the deal is live.

In many ways, we’re like doctors. We may not save lives, but we certainly save money. And clients depend on our accuracy and judgement.

You have to keep your technical knowledge constantly updated — how courts interpret language, how laws evolve. You must be accessible. A brilliant adviser who’s unavailable isn’t helpful. Clients value reliability as much as expertise. So, I’d say technical competence, responsiveness, attention to detail, and building trust — those are the key ingredients.

And yes, these qualities apply across many industries, but in consulting, they’re non-negotiable. Even internally, you want your team members to be responsive and dependable. That’s what sets you apart and helps you grow.

How is the taxation industry adapting to today’s changing dynamics — particularly after the pandemic and amid evolving laws?

There have been massive changes. Back in 2019, if someone had asked to work from home, it would likely have been frowned upon — definitely not approved. But the pandemic reshaped everything.

Earlier, reviews involved stacks of physical papers, red and green pens, margin notes — we worked that way for years. Suddenly, that all disappeared. We had to adapt to an online, tech-driven workflow overnight.

In many ways, the younger generation thrived, while those stuck in older methods struggled. It wasn’t just about using a computer — it was about collaborating in real time, across cities, using cloud-based tools. Platforms like Google Sheets, where multiple people can edit simultaneously, became game changers.

The way we prepare and deliver work has completely transformed. Today, our teams don’t come to the office every day. There are scheduled days, but work continues seamlessly. Some of us old-school types might argue that efficiency has dropped — but honestly, that’s more perception than fact. If there had been a real dip in efficiency, our practice wouldn’t have grown the way it has — in terms of both headcount and revenue.

We’re now in a world where someone can be in Bangalore in the morning, on a client call in Kolkata in the afternoon, and virtually attending a meeting in the US by evening. That flexibility and reach are now the norm.

So yes, the pandemic accelerated a shift that was long overdue. It’s changed how we work, collaborate, and even how we define presence.

The start-up culture has grown enormously in India. How has that affected the audit and transaction advisory industry?

Startups have had a profound impact — both on our work and on talent dynamics. Let’s be honest, what we do in audit and transaction advisory is considered boring by many, while the startup world is seen as dynamic and exciting. And that perception does affect us. For instance, a startup like Swiggy can offer `18–24 lakh salary packages and easily attract people, whereas we might struggle to match that.

But there’s a flip side to it, and it’s largely positive. Startups have brought in a lot of technology and forced us to modernise. We were talking earlier about how AI can now help draft legal documents or how digital tools can manage stock option records. These innovations have made our lives easier in many ways.

Startups have also created a tremendous amount of work for us — especially in areas that were once unfamiliar. Concepts like liquidation preference or waterfall distribution used to be niche or US-centric. But with VC-backed startups in India, we’ve had to understand and apply these frameworks within Indian legal structures. That has expanded our knowledge base and kept us on our toes.

So yes, startups have reshaped our work — by challenging us, by teaching us, and by pushing the boundaries of what we thought was possible.

What role is innovation — especially digital tools and AI — playing in reshaping M&A practices today?

There’s immense scope, and we’re already seeing exciting changes. Let’s take due diligence, for instance. Earlier, it meant laborious sample testing — painstakingly going through documents manually. Today, tools can analyse a company’s bank statements and flag suspicious transactions or detect patterns suggesting preferential vendor treatment. It’s powerful.

AI is also helping draft agreements. What once took hours of manual labour can now be done in a fraction of the time with high accuracy. And that’s just the beginning.

Even legal research has become more accessible. The Supreme Court now offers decades of judgments in searchable, downloadable formats. Earlier, this would have required costly subscriptions. Today, it’s all a few clicks away.

And courts themselves have transformed. You’re no longer allowed to carry bulky paper files into the Supreme Court — it’s all digital now. Arguments happen off iPads. So from courtrooms to conference rooms, innovation is already revolutionising the way we operate in M&A.

Do you believe that technology can replace humans in taxation, legal compliance, or accounting? How real is the threat?

Let me put it simply: human instinct is irreplaceable.

You can automate a lot of processes. AI can summarise case laws in minutes — something that used to take an associate an entire day. It can draft documents, flag risks, and speed up routine tasks. So yes, it will reduce the number of people we hire for clerical or repetitive work. That era of hiring based purely on volume is ending.

But what technology can’t replace is judgment. It can’t read the room. It can’t evaluate behaviour, body language, or draw on contextual insight. It doesn’t have instincts. And in our business — whether you’re advising on a merger or interpreting tax nuances —instinct and judgment make all the difference.

So no, technology won’t replace professionals. It will, however, demand that we upskill and move up the value chain.

A misplaced comma in a legal document can change a deal. Precision, speed and trust are non-negotiable in transaction advisory

Based on your journey, what advice would you give to the youth of today?

First and foremost, be honest. Not just in the sense of integrity, but in truly expressing what you feel. I find that many in the younger generation struggle with this — whether it’s in personal relationships or professional settings. They bottle things up rather than just being upfront.

Honesty is hard. It makes you say uncomfortable things. But it gives you peace of mind. It’s better to be honest with a client and say, “We’re running behind,” than overpromise and then struggle to deliver. It’s better to say, “I’m not ready,” than enter something you’re unsure of. It’s difficult — but it makes life easier in the long run.

Second, be sincere. Sincerity to your cause matters. You will have choices. You’ll be tempted to take shortcuts or switch paths quickly. But if you believe in something, stick with it. Keep your head down and work sincerely — even if success takes longer. That’s what builds character.

So yes, it sounds basic — be honest and be sincere. But these are your foundation stones. Without them, no amount of talent or opportunity will hold up. 

The old-school model is over. Today’s professionals want flexibility, empathy, and transparency — and they deserve all three

You can’t sell rosy dreams to talent anymore. Be honest upfront — this generation values candour and respects it deeply