← Masters of Scale
Loading summary
Transcript44 lines
- [00:01]
A
Startups grow in unpredictable ways, but your infrastructure shouldn't. Deal scales with you from Employee 1 to Employee 1000. Deal's real time payroll engine cuts weeks long cycles down to minutes and their global experts keep you compliant as you expand. Plus, startups can tap into perks like up to $25,000 in deal credits and support programs designed specifically for high growth teams. Deal Deal is the fastest way to hire, manage, pay and equip anyone, anywhere. Deal your Forever People platform. Visit d e-l.commos to learn more and book a demo
- [00:40]
B
on Masters of Scale. We talk a lot about inflection points, those moments when a technology stops being optional and starts being fundamental. AI presents one of those moments and behind every breakthrough, whether it's medical research or education or and cinematic visual effects, there's infrastructure most people never see as the essential cloud for AI. Core Weave is building that foundation. It provides a purpose built AI cloud designed specifically for pioneers at leading AI labs and enterprises. Ready to power the biggest ideas and the boldest ambitions. Ready for Anything. Ready for AI to learn more about how CoreWeave powers the world's best AI, go to CoreWeave.com ReadyFor Anything
- [01:34]
A
Today AI is how we do work. So I don't see that as coercion in any way. You have to work in the way we work in order to be successful here. When I was selected as the CEO, big reason was because I hadn't grown up here and I was willing to change things. Things and just ask the question like why can't we do this?
- [02:07]
C
That's Julie Sweet, CEO of Accenture. As AI disruption deepens and missiles fly in the Mid East, I wanted to talk to Julie about what she's hearing from her many clients and what advice she's giving. Julie shares some on the ground stories including how she personally stays looped in on the constant shelter changes. She also talks about why using AI tools is now a requirement for promotion at Accenture, why she's doubling down on entry level hiring and more. It's a high level leadership session with lots of practical insights. So let's get to it. I'm Bob Safian and this is Rapid Response. I'm Bob Safian. I'm here with Julie Sweet, CEO and Chair at global consulting firm Accenture. Julie, thanks for joining us.
- [02:59]
A
Thanks for having me Bob.
- [03:01]
C
So Accenture works across 120 countries, 9,000 clients, you're in every industry. You kind of have this unique visibility into how organizations and leaders are navigating what is really a Chaotic, fast moving environment right now. Are there questions that you're particularly hearing right now?
- [03:23]
A
Well, Bob, it's interesting if I just start with Iran, right, Because, you know, I'm getting actually a lot of questions, particularly Europe, where, you know, if you think about the potential energy crunch, it's expected to hit harder in Europe than say, you know, the impact on the U.S. everyone believes that this environment where, you know, energy is a risk, right, is just their new norm. And actually there's more optimism because if you can Compare this to 2022, right, when the Ukrainian war started, Europe is in a much better position from a resilience perspective. And it's a theme that we've been seeing for quite some time. I got the same questions even a couple months ago when we had sort of, again, this whole issue around tariffs and imposing them is that CEOs are really just expecting the unexpected, like it's being built in. And that's why resilience is such a big theme. There's also the big questions are continuing on AI, et cetera, but I wanted to address kind of the latest, which is the impact of the Iran war.
- [04:34]
C
When I talk to CEOs right now, there's this sort of sense that some of them seem almost frozen, like they're, they're waiting for clarity. And I know you've kind of encouraged the opposite. You know, don't take cover, take chances. Like, how do you know what. When to act and when to wait.
- [04:52]
A
The reality is, as a CEO, you can't bake anything into your plan simply because it is so unknown. And that's where transparency really matters, is being able to say, here's what we know, here's what we don't know. And then we're making our action plan with those things in mind. Right? And so when you think about, like, when do you know to act or not act, in my view, you're always acting. It's intentional decisions. It's an action to say, I, because I don't know this, I can't alter my plans. One of the biggest risks right now is even less around the impact on the economy from what's going on on the Strait of Hormuz and energy. The bigger risk that many companies are talking about is do we have a cyber attack or attack on critical infrastructure that spins out of that? And for that there are actions you can take. Right, because we're helping clients look at their cyber resilience. Right? There's already been a big, big growth area for us because AI itself has increased the Attack surface. But when you think about what the risks are, you can't really tell what's going to happen on the energy front. But knowing what do you know, what don't you know? And are there actions that can be taken? And then you. And that's why right now, you know, there's a million different scenarios that are really bad for the global economy, but they're just scenarios right now.
- [06:28]
C
Right?
- [06:28]
A
And so trying to take actions, build it into, you know, your guidance and your plan, you know, could result in a lot worse impact on your company than simply understanding whether or not those unknowables really prevent you from executing.
- [06:49]
C
Alongside all this geopolitical activity, there is also the technological shifts that we're experiencing. You made a bold move last year where you merged a bunch of divisions into a single unit that you call Reinvention Services. Around AI, you're coming off your biggest ever quarter of revenue growth. In new business. We see businesses that are, you know, they're not tech businesses that sort of may not be getting the return on investment from their AI that they had expected or they had hoped or something like that. Like, does it, does it work in some places and not others? Are there industries and functions that are more fit for AI than others? Or it's more about culture and commitment?
- [07:32]
A
Well, in some ways, Bob, it's going to be all of the same. So first of all, we have to remember the technology, while changing fast, is still, still really early. And there's a lot of actual value that companies are doing before they get AI. Advanced AI has been kind of a catalyst. So let me give you an example. We work with a pharma company that takes drugs to market and there's a process that once the drug is approved, you have lots and lots of regulatory stuff. So, like what you write to explain it to the physician takes a long time. We've said for a long time, like you could actually cut that. Instead of it being months, it could be much shorter if you change the process to be standardized, if you keep your data in all one place. None of that requires gen AI or advanced AI. But for most companies, they haven't done that. Okay? So when we worked with them, because AI, advanced AI was now the catalyst because that enables, if you have all the standardized processes, you to actually create the content faster. Right? But the first piece always could have been done and hadn't been done. And so much of the work that we're doing is actually work that companies are saying, okay, wait a minute, before I spend the money on the advanced AI, I should clean up my processes that are fragmented. Right. I should standardize things. I should not have as many people in middle management, like completely. Not because of agents, but why would I spend, spend money to create an agent to replace a manager that I shouldn't have in the first place is
- [09:12]
C
part of the hope that like, you know, the motivation for not having done this, oh, the agent or AI will come in and do this for me. Like I can skip a, skip a layer, save money and you know, like, that's the silver bullet. And if I'm hearing you right, you're like, yeah, maybe not.
- [09:28]
A
Yeah, I mean, I think there was this view at the beginning where companies thought, because it's so easy, or are they just going to do it all right, right, do like I just asked this model and this model is going to tell me how to reach, change my company 100%. That is not, you know, the models don't know how to change the company. Right. And if you spend money on your current structure, just replacing it, you're, you're at best going to get incremental value. And the real value is actually reinvent everything you do. And that reinvention doesn't start just with the advanced AI, but a lot of really basic lessons where companies haven't had the will to fix it. I tell you, with CEOs every day, like in three years, you should be able to tell what did I use AI to make the impossible possible. Because if the only thing you're doing is sort of incrementally improving how you're operating, you're not going to get the biggest value. The biggest is in the core operations of a company. Like things you can, you're going to be able to do with asset management and, and you know, any industrial company, things you're going to be able to do with the grid and the utilities. The tech isn't completely there yet. It's still error prone. That's why everybody's tracing how long does the tech work?
- [10:49]
C
Right.
- [10:49]
A
The memory piece of it. And so where you get value today is anything with like customers because those are short interactions. So the tech has to continue to improve and the strategy has to be, I'm going to use this tech to do something I couldn't do before.
- [11:07]
C
There's this phrase AI first. You know, you've described Accenture as an AI first company. It's something a lot of other players aspire to but struggle to implement. Is it hard to be AI first? Like, what does it mean?
- [11:21]
A
First of all, it is hard. And the reason why it's hard is it requires your leadership to understand what AI does. And this is so different than the digital era, right? Moving to the cloud and stuff. A lot of it was plumbing. So as a leader you didn't have to understand it because it was being handled by the tech folks. To be AI, first you have to say, what can AI actually do? So you have to understand things like, oh, wait a minute, it has to have a certain amount of memory to actually be able to do something. You have to understand what it's actually able to be accurate about and then think about your business to say, where can I get a big enough return for using something this, like in this cost? So it starts with leaders having to understand technology in a totally different way. So like when ChatGPT first emerged in, you know, November 2022, the people who received the most training initially were actually my top 50 leaders, because I knew that if they didn't understand the power, they would not be able to help us actually transform how we're delivering our services and what our clients could use it for. So leader led learning is a huge unlock. And then AI first is asking yourself, is this something that AI could do? It's something as simple as Bob, like the way I used to gather information, I call somebody and I say, go do the research. And now I have an agent that can go like gather everything, synthesize it. It still needs to be read. It's not always accurate by the way, but like that's, that's a completely different way of thinking and that's like a small example. But imagine if that's throughout everything you do with your business, you have to first ask the question, can we approach this totally differently?
- [13:13]
C
And for you, like, how did you train yourself to understand AI? And I guess, how do you stay caught up?
- [13:21]
A
Today I'm spending time literally every day, right, learning, getting the latest updates. I'll read something of this latest release and I'll ping my team. Let's talk about what this really means. What did we see in advance? A lot of the technology that's being released today is not being tested in enterprises first, which is a big shift stuff, is being released before it's actually been tested at scale. In September, we introduced agentic AI training for every person at Accenture, whether you work in HR or you're, you know, a technologist. And it's, it's an hour of computer based training, it's two hours of in person training and then we have another two hours of a course that we created with Stanford. Everybody needs to understand this wherever they are, because it's going to become a bigger and bigger part of how we're operating as a company in addition to what we're selling.
- [14:16]
C
And because it's being, a lot of the tools are being introduced really at a consumer level before they're at an enterprise level. Does that mean you have folks who like, you know, they're bringing the AI in with them, like they've tried it somewhere else and they're bringing it in, but you're not really sure the credibility or the resilience that you want to have it be used internally?
- [14:37]
A
Well, no, I mean, we're using it internally, but the thing is we understand where the technology is and where it should be used and where it's not ready to be used. What, what you're pointing out something different. You know, a lot of people ask me about entry level jobs and why are they going, wait, we're hiring globally in all our major markets, more entry level jobs this year than we did last year. What's the number one advantage? The number one advantage for the college graduates we're bringing in is that they are most much more AI fluent than someone who's even been here two or three years. You're using it in their education, they're using it every day.
- [15:18]
C
And, and the idea that we hear about that sort of these entry level jobs are going to be replaced by AI, you kind of think that's, that's a myth?
- [15:28]
A
Well, what I would say is that it is very early in this technology's evolution and, and we can make choices. And so like at Accenture, we said, look, entry level jobs are important economically. It is less expensive. It's how we actually create more experienced people. Right. Like sort of that whole path, if you don't have anybody entry level, how do you create the next generations? And it's also the right thing for our communities. We can't thrive if the community doesn't thrive. Right. And so we said we need to crack the, the code on what are the changes we need to make as a company to continue to have entry level. So we've reconstituted jobs. Right. We understand which tasks and jobs should be automated, can be replaced by agents. So then we've recreated new entry level jobs with the skills that are not going to be replaced. We've changed the way we train when we bring people in so that we're giving them the skills that they need. May not yet have changed the way we onboard and train people and Then we're introducing things like better communication training, because if someone can be more productive earlier, then that means they have less apprenticeship time, like working with clients. So we need to make sure they have better communication skills faster that they're not learning over as long a period of apprenticeship. So it's an intentional strategy which is paying off for us economically. It's all also the right thing to do.
- [16:57]
C
I love Julie's expression leader led learning. You've got to understand all these changes at the top and then also lean into young newcomers who are AI native. So what about the rest of the organization and what kind of responsibility does business have in society overall to prepare people for an AI future? We'll talk about that more after the break. Stay with us.
- [17:27]
B
AI breakthroughs are quickly reshaping every industry around the world. Healthcare, education, science, entertainment and beyond. But true global scale only happens when the underlying infrastructure can maintain pace with the rapid speed of innovation. As the essential cloud for AI, coreweave is a purpose built cloud made for the real demands of today's most complex AI models, bringing the pace, performance and partnership. Leading pioneers need to continue pushing boundaries. Ready for Anything? Ready for AI to learn more about how CoreWeave powers the world's best AI, go to CoreWeave.com ReadyFor Anything when you have a creative vision, you want total control from the first frame to the final render. Which is why so many creative teams are using LTX2 from Light Tricks. LTX2 is a next generation open source AI engine for audio and video built for teams who need production ready quality and total control. It runs end to end creative workflows directly on your own device with 4K video, synchronized sound and full creative flexibility. No bandwidth limits, no data, leaving your machine just the freedom to generate high fidelity video with synchronized Audio at roughly 1.8the cost and 1/7 the rendering time of comparable tools. Start creating at LTX IO model
- [19:01]
C
before the break, Accenture CEO Julie Sweet talked about how war in Iran and AI disruption are rattling CEOs assumptions. Now we talk about why Accenture tracks AI use in Detroit, determining promotions, what she calls today's biggest leadership essential, and why tension in the C suite is a good thing, plus lessons she's learned from her cancer battle. Let's jump back in. Accenture has committed billions to reskilling employees. But those who don't get serious about reskilling with AI, we've seen these reports that they're going to be shown the door that you track your staff's use of AI tools when considering promotions how do you navigate this line between AI encouragement and what some might see as like, coercion?
- [19:53]
A
Well, I don't think it's coercion in any sense of the world. So think about this. When we introduce computers, right? You went from a type. I'm old enough. I remember like I actually took a typewriting class, right. So I remember all this. Like, no one would have said that requiring someone to use a computer is coercion, right? It's how the companies were going to get work done today. AI at Accenture is how we do work. Right. And by the way, if you're coming in from, as a college graduate right now, you don't even question that. College graduates. I've had clients tell me that it's the college graduates who come and say, what do you mean you're not using this? Because they want to be at the company that's actually using it. You have to work in the way we work in order to be successful here, right? So I don't see that as coercion in any way. These are the new tools to operate a company. We didn't go from zero to you won't get promoted like in a month. It's over a three year period of getting used to the technology, making sure it's user friendly, making sure we have the right workbench for people to use and then saying, hey, this is Accenture in how we operate. So if you want to get promoted, you've got to do the things that we do in order to operate Accenture.
- [21:12]
C
But you know, there are communities of, of folks who are, who are anxious about what AI is going to do to them and folks being left behind. I'm sure you have some clients where they're getting that, that feedback.
- [21:25]
A
There's been a lot of investment in the AI itself. There hasn't been as much investment by companies in the training. Companies have to do more. I also think it means governments have to do more because small and medium sized enterprises don't have the same means.
- [21:41]
C
You've said that every leader needs to think of themselves as a, as a reinventer. Reinvention requires a tolerance for failure, you know, and most large organizations are kind of wired to punish failure. How do you think about and navigate and encourage that kind of tolerance as to what failure is acceptable and good and learning and what failure is, is not.
- [22:05]
A
You know, it's funny, Bob, I was just talking to someone, explaining to the CEO, I said, you have to remember that when somebody says there's a, you know, 80% that we're going to do it. That means There's a 20% risk that you're not. And the 20% is real. Sometimes people forget that actually in everything we do at companies, there's always that risk of failure. And then they're shocked when something doesn't go right. It's an important mindset to understand that risks are real and they might happen. The bigger challenge, Bob, it's not about risk or fear of failure. The biggest issue with being a reinventer is letting go of how you've done things. So we have a leadership essential around. We want everybody to check respectfully, challenge how we do things. What we recognized was that people didn't see that as their job, but actually every one of us should be willing to challenge. Is the way that I've done this still the right way? And that's really hard if it's your baby, if you created, if you've been doing it for 30 years. So I think it's less about being willing to fail and more, more about having the humility to be willing to change.
- [23:28]
C
As we're talking, I'm reminded that only what, 5% of Fortune 500 companies are run by women. I know you're one of the highest profile. I'm worried about how to even ask this. Is gender in business something you like talking about, or does the focus on you as a quote, unquote, woman leader frustrate you?
- [23:52]
A
You know, I, I, I don't really, I don't care in the sense of is it a productive conversation to lead to a different outcome? Right. So I actually have a lot of CEOs who will ask me, particularly in parts of the world where there aren't as many. You know, the US has got a lot more women leaders, for example, who, who want to have the conversation because they genuinely are trying to figure out how, you know, how do I unlock that talent pool? You know, what are we, what, what, what am I doing wrong? And, and so that focus is a good focus because there are things that are barriers. You know, I, sometimes there are places that I go in, like Europe and Asia, where it's like being in the US around the 2000s, right? When I was a young professional, like. Cause they're just in a very different space. So, you know, now, like what I would tell you that at Accenture, when I was selected as the CEO, first as the CEO of North America and then the CEO globally, a big reason was because I hadn't grown up here and I was willing to change things because I wasn't wed to how we'd done business for the last 30 years. Right. I wasn't wed to, well, we can't do that because so and so so won't like it. I was willing to come in and, and just ask the question like why can't we do this right. And that came from actually coming in from the outside. When you have diverse leadership teams, whether it's gender diversity, outside in diversity, you know, backgrounds, they produce more innovation. It is because you get all these different views, viewpoints that you don't have if everybody feels the same and the same can be gender, but it's as much the bigger issue is often have they only worked in one place and they're not thinking about other, you know, other opportunities, other ways of doing things.
- [25:56]
C
And, and these, these differences that people bring, I mean that can, that could bring conflict. But what you're saying is that conflict, as long as it doesn't get personal is good, right? That it sort of helps to illuminate options, ideas and possibilities.
- [26:12]
A
Absolutely. And in fact, the best CEOs in the world will tell you they don't want a team that always says yes. They want a team where there's a healthy tension. Because at the level of the C Suite, things are not just very clear cut. Right. There is always a lot of like, sort of ambiguity. I do not get to make a decision where I just have 100% certainty. And so when you're working through that ambiguity, you want different perspectives. I learned that when I was a young lawyer partner at a law firm. So I was a partner for 10 years and my first year I had this very difficult problem and in fact a client that was trying to get me fired because I wasn't giving them the answer they wanted. And I remember I brought together the most conservative partners and the most liberal partners because I felt like that was the only way to test whether my viewpoint in advice was right. Actually bringing the people that I thought, if anybody is going to disagree, it's going to be these three. And I remember I brought nine partners together. And so when we went back and actually stuck with our position, like the head of the firm could feel so confident because it wasn't about being right or righteous. Right. We really had that difficult discussion with lots of viewpoints and then landed on our position.
- [27:44]
C
So I have a little bit of a personal question. I know that last year, in the midst of all the leadership and business challenges of 2025, you were diagnosed for a second time with breast cancer. Dealing with health issues while trying to project strength as a leader. It's a lot of extra stress. Or do the health issues put the work stress into perspective?
- [28:09]
A
I never mind talking about it and I feel in part because I always use it as a plug to. Whether you're a man or a woman, there are certain cancer screenings that you should do and everyone should get them done. Because when cancer is caught early, you survive, you know. And in my case, my first cancer was in 2015 and I was caught by a mammogram. In this case a decade later, it was caught by a self examination. And it's super important. And as you know, there's lots of like recommended cancer screenings and it's usually when people don't get them that they end up finding cancer too late. So that's one point. Look, I like, I'm one of those people, like I would never say like, wow, you should have cancer because you're going to have this great insight into your life or something. Like, like, there's gotta be better ways to have insights. And at the same time, I think, you know, you find a silver lining. Like my first time I had cancer, one of the things that I really honed in on was I didn't have regrets. I felt like I was living the life that I and making the right choices. And so over the last decade, I used to ask myself, myself that. I used to say, if I found out I had cancer tomorrow, would I still feel like I didn't have regrets in terms of the way I was living my life? And sometimes it would cause me to change. I'd be like, you know what, I'm away too much, right? Like I'm not feeling good about like that those choices. I was hoping that was a theoretical question I was asking myself. But you know, that didn't turn out to be right. And so when this happened, of course, like it had an impact, right? I couldn't travel, you know, et cetera. But I had a phenomenal team. And when you look at our results, you know, we had a great year in the year that I had cancer. I mean, we, you know, took massive market share. We're a $70 billion company growing at 7%. And the testimony is I believe in that. You know, you build companies to be resilient and you have great teams. I still stand by though. I don't wish on anyone to learn those lessons that way. You know, 2026 is great. Starting cancer free and not having to manage any health issues.
- [30:22]
C
Well, that is good news to hear. The environment in 2026 feels so unpredictable. You know, politics, regulation, AI, war, changes everywhere. I'm curious whether you have a philosophy about what the role of business is in setting the course for the future.
- [30:40]
A
Look, I, you know, we have believed for a very long time that businesses have responsibilities to their customers, their employees, their investors or shareholders and to their communities. We spend a lot of our corporate citizenship on digitally reskilling because we know that helps communities, more people who are employed. And that's a direct link to, you know, our success as a company. That's why with AI, I do think it's very important that we are being intentional around keeping entry level jobs, that we are being intentional about the new strategies that are needed for reskilling. In the world of AI, it's going to take more and more of those deliberate strategies to ensure sure that AI does benefit for all.
- [31:38]
C
Julie, this was great. Thank you so much for doing it.
- [31:40]
A
Thank you.
- [31:44]
C
Julie's focus on deliberate strategies, on intentional actions. It's a steady stream in her advice from Iran response to AI and when I think about it, there's probably an emotional benefit as well as the practical ones. When we feel ourselves overwhelmed or even panicked, what can we do to get we grounded? As Julie says, we can identify what we know and also identify what we don't know and then be transparent about, both with others and with ourselves. I'll confess to having moments of dismay and anxiety, to feeling both frozen and frantic at the same time. In those instances, I try to remind myself about what I can and can't control. And then I build a plan for action. Doing something makes me feel better and allows me to take agency over my life and my work, even when so much is out of my hands. I'm Bob Safian. Thanks for listening. Rapid response is a wait. What Original I'm Bob Safian. Our executive producer is Eve Trow. Our producer is Alex Morris. Associate producer is Mashumaku Tonina. Mixing and mastering by Aaron Bastinelli. Our theme music is by Ryan Holiday. Our head of podcasts is Lital Milad. For more visit rapidresponseshow.com.