EY Global Fees Climb to $49 Billion, Capping Tumultuous Year

Ernst & Young released a batch of new AI investments Wednesday as the firm posted global revenues that climbed to $49.4 billion thanks to strong demand for technology and tax services.

Revenue grew 14% in local currency, and the firm reported steady growth across its service lines for its 2023 fiscal year, which ended in June. The strong results cap what had been a tumultuous year for EY as top leaders tried to build consensus for spinning off its consulting and tax advisory businesses but ultimately scrapped the break-up plan in April after failing to garner support from US leaders.

The firm touted the results, up from $45.4 billion last year, calling 2023 “one of the most successful years” in EY’s history.

“The organization is seeing the result of investment in pivotal alliances, cutting-edge technologies, and, most profoundly, the continuous upskilling of EY people,” Carmine Di Sibio, the EY global CEO who is set to retire next year, said in a statement.

Demand for cloud services and a string of 25 acquisitions helped the firm’s consulting fees to soar nearly 22% to $16 billion. Shifting global and national tax policy and demand for tax managed services drove up EY tax fees 12% to $12 billion. Assurance fees rose to $15 billion, an 11% increase from the prior year, according to the firm.

The firm’s Europe, Middle East, and Africa region grew the fastest, nearly 17%, to $18.3 billion.

EY said a $1.4 billion investment in AI enabled it to launch a platform to assist companies adopt the rapidly evolving technology along with a tool to monitor risk and governance. The firm also plans to release its own large language model, which drives generative AI tools, and said it would train its global workforce of nearly 400,000 employees to use AI.

Deloitte, the largest of the Big Four firms, posted $65 billion in revenue last week. Competitors PwC and KPMG will report results later this year.