Good morning, CFOs. Sikich chief executive tells WSJLI about its plans for AI and revenue growth; with about a quarter of S&P 500 companies reporting earnings, the profit picture ‘looks good,’ experts say; momentum for California’s billionaire tax.

Professional-services firm Sikich is investing in artificial intelligence and working to drive revenue growth without significantly expanding its workforce.

The Chicago-based firm is seeing efficiencies from tech investments, particularly in its audit practice where AI tools and agents act as a "secret sauce" alongside standard software, Chief Executive Christopher Geier told the WSJ Leadership Institute’s Mark Maurer, who writes:

Sikich in 2024 received a $250 million minority investment from private-equity investor Bain Capital, one of many deals in which accounting firms have turned to private equity for a capital boost in recent years. Geier said he doesn’t expect Bain to expand its stake to majority ownership.

I talked with Geier about AI and hiring. Edited excerpts follow.

How do you see AI adoption affecting revenue and head count levels?

I'm of the belief that, at some point in the not-too-distant future, we'll be doing twice or three times as much revenue with the same number of people. I can see that coming. If we have a need for capacity, we have to first look at technology.

Do you think there will be a shrinking need for CPAs as AI adoption further ramps?

I still believe personally that the CPA designation has a lot of value. Because it's still a designation that allows CPAs to do things that no one else can do. As long as the industry maintains its position where the CPA can sign an audit opinion when no one else can, that will still matter. AI really does allow our people to do things that we believe are ultimately more valuable to the clients.

We are hiring folks that are doing a lot of the work that has been done historically by CPAs with people that don't have a CPA. These are people who are doing data and AI projects as well, within these larger companies that we're providing a variety of different services for. But you always have to worry about and pay attention to the independence issue.

How comfortable are you with using AI?

It is to me, at this moment, a virtual assistant. If I use it to summarize a meeting that I missed and I use the playback feature and it does, like, a radio broadcast of the meeting, I wouldn't say that I have 100% confidence, not because the data they spit back out might be wrong. It's because it lacks context at times. I would never let something go out to somebody without looking at it first, if it had some component of AI as part of that output.

—Mark Maurer

Big American companies are piling up profits despite war and consumer anxiety, bolstered by healthy sales growth, Theo Francis reports.

So far about a quarter of S&P 500 companies have reported results. Wall Street’s expectations for earnings suggest big U.S. companies are far healthier than wider economic concerns might indicate.

What the experts are saying:

• “On average, profits look good,” said Gregory Daco, chief economist at EY-Parthenon. “On average, the economy looks good. But when you look at who is benefiting from that growth, it’s extremely polarized.”
• “Earnings growth has been exceptional,” said Parag Thatte, an equity strategist for Deutsche Bank. “We’re seeing the broadening of earnings growth beyond just tech and financial” firms.

War in the Middle East had led economists to rein in growth projections for the year. Consumers—long the engine of the U.S. economy—feel solidly in the dumps. High oil prices act like a tax, dragging down household consumption while boosting inflation.

For the full details, read on here.

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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

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