Dan Diazio

EY's Global Consulting AI Leader

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Key positions and views

The primary competitive threat for established companies comes from unseen, AI-native startups, not traditional industry rivals.

Corporations are making a strategic error by focusing AI on back-office cost reduction instead of front-office growth and strategic advantage.

The future of work involves humans shifting from content producers to 'creators' who direct and manage a workforce of AI agents, requiring new skills like delegation.

Successful AI adoption requires a holistic approach that balances investment in the 'toolset' with the equally important 'mindset' (strategic vision) and 'skillset' (human capabilities).

AI commoditizes average-quality output by raising the baseline ('floor') but does not necessarily improve top-tier, exceptional work ('ceiling').

Podcast consensus on Diazio

Points of consensus

▶Diazio consistently argues that the true value of AI lies in strategic growth and competitive advantage, not just back-office cost reduction, a point he makes when criticizing common corporate strategies (Claims 2, 10).Apr 2026

▶He repeatedly emphasizes a fundamental shift in the human role at work, from producing content to directing AI agents, which he describes as becoming a 'creator' or a 'manager on day one' (Claims 4, 14, 16).Apr 2026

▶He frequently uses his own firm, EY, as a primary case study for AI transformation, citing its $1B+ investment, the creation of 'ey.ai,' and the strategic move away from the billable-hour model to demonstrate commitment (Claims 3, 7, 9, 19, 20).Apr 2026

▶Diazio maintains that successful AI implementation requires a holistic approach, arguing that corporate investment is too focused on the 'toolset' while neglecting the essential 'mindset' and 'skillset' (Claims 11, 18).Apr 2026

Points of debate

▶Diazio's prediction that new hires will be 'managers on day one' (Claim 16) presents a radical challenge to traditional corporate hierarchies and career progression models, which are built on gradual advancement.Apr 2026

▶His assertion that AI 'doesn't raise the ceiling' for exceptional work (Claim 15) contrasts with more optimistic views of AI as a tool for unbounded creativity, suggesting a hard limit to its utility for true innovation.Apr 2026

▶His critique of focusing AI on back-office functions (Claim 2) is in tension with the common, risk-averse corporate practice of testing new technologies in non-critical areas before deploying them in strategic, customer-facing roles.Apr 2026

▶The claim that EY is actively disrupting its own lucrative, decades-old billable-hour model (Claims 3, 9) creates an internal business conflict between long-term strategic necessity and the powerful 'muscle memory' of short-term financial incentives.Apr 2026

Key themes

▶The AI-Native Competitive ThreatApr 2026

Diazio argues that the most significant threat to established corporations is not their known competitors, but rather unseen, hyper-efficient AI-native startups that can achieve massive valuations with small teams. This shifts the competitive landscape from industry incumbents to agile, tech-first disruptors.

Investors should scrutinize legacy companies' AI strategies not just for efficiency gains, but for their capacity to innovate and compete with a new class of lean, AI-powered challengers.

▶Misguided Corporate AI StrategyApr 2026

He observes a widespread corporate flaw in applying AI primarily to back-office functions for cost-cutting. Diazio contends this is a limited, defensive posture that misses the larger opportunity for AI to drive strategic growth, innovation, and new revenue streams.

Analysts should be skeptical of companies that only report AI-driven cost savings and instead look for evidence of AI integration into core product development and market-facing strategies.

▶The Human-Agent WorkforceApr 2026

Diazio envisions a fundamental shift in the nature of work, where employees, even at the entry-level, will act as managers or 'creators' directing AI agents. This new paradigm elevates the importance of human skills like delegation, critical thinking, and creativity, while commoditizing routine content production.

This signals a major shift in talent acquisition and development; companies that successfully upskill their workforce in these 'managerial' and creative capabilities will have a significant human capital advantage.

▶Disrupting the Effort-Based Business ModelApr 2026

Using his own firm, EY, as an example, Diazio highlights the challenge and necessity of moving away from traditional, effort-based models like the billable hour toward value-based outcomes enabled by AI. This internal transformation, backed by over $1B, is presented as a prerequisite for advising clients effectively.

The shift from effort-based to value-based pricing, driven by AI, could radically alter the professional services industry, rewarding firms that can deliver superior outcomes with less human labor.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

Current State Assessment

Diazio reports that clients are more concerned with unseen AI-native startups than traditional rivals, and notes that corporate AI ownership has cycled from the executive team, to the CIO/CTO, and now back to the CEO for strategic vision (Claims 1, 6).

Observed Corporate Response

He observes that companies are making strategic errors by focusing AI on back-office cost reduction and productivity gains, while disproportionately investing in the 'toolset' and neglecting the necessary 'mindset' and 'skillset' (Claims 2, 10, 18).

Proposed Strategic Framework

Diazio outlines EY's framework for effective AI use, which combines AI with human skills like creativity and critical thinking. He recommends a 'human, agent, human' workflow and an AI 'blueprint' with a control layer to manage agent autonomy (Claims 11, 12, 13).

Internal Case Study (EY)

He details EY's own transformation, including a $1B+ investment, the creation of 'ey.ai,' and a 'Client Zero Program' to disrupt its own billable-hour model before advising clients (Claims 3, 7, 19, 20).

Future Workforce Vision

Diazio predicts a future where the consultant's role shifts to 'creator' and new employees become managers of AI agents on day one, requiring strong delegation skills (Claims 4, 14, 16).

Suggested prompts

How can established companies overcome the 'muscle memory' of their existing business models (Claim 9) to compete with agile, AI-native startups? &nearr;What specific training programs and organizational structures are needed to prepare a workforce for a reality where even entry-level employees are 'managers on day one' (Claim 16)? &nearr;If AI raises the quality 'floor' but not the 'ceiling' (Claim 15), what are the long-term implications for innovation and competitive differentiation in creative and knowledge-based industries? &nearr;How can leadership effectively shift corporate AI investment from a narrow focus on the 'toolset' to a more holistic approach that includes 'mindset' and 'skillset' (Claim 18)? &nearr;

Key concepts

Agentic AI 1 ep Business Model Disruption 1 ep Corporate AI Strategy 1 ep AI-Native Competition 1 ep Human-AI Collaboration 1 ep Workforce Transformation 1 ep EY / ey.ai 1 ep Billable-Hour Model 1 ep Toolset vs. Mindset/Skillset 1 ep

Notable quotes

“People that will join companies next year will be managers on day one. They will just be managing a workforce that is an agentic-based workforce, one that is extremely powerful and sometimes clumsy.”

Dan Diazio · Is Agentic AI upending the corporate ladder? EY's Global Consulting AI Leader shares what’s coming

“most of my clients are really concerned about the competitors and the they do not see and they are not competing with today. It's the AI natives.”

Dan Diazio · Is Agentic AI upending the corporate ladder? EY's Global Consulting AI Leader shares what’s coming

“AI makes it very easy to produce something good, but it kind of commoditizes the output. And in a lot of ways, it raises the floor, but it doesn't raise the ceiling.”

Dan Diazio · Is Agentic AI upending the corporate ladder? EY's Global Consulting AI Leader shares what’s coming

“So the real sequence of work should be human, agent, and then human.”

Dan Diazio · Is Agentic AI upending the corporate ladder? EY's Global Consulting AI Leader shares what’s coming

Report last updated: Apr 21, 2026

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