Accenture is under strict observation; AI-driven cost pressures and preference for cheaper alternatives pose long-term risks despite recent positive earnings.

I'm looking at Accenture, with the trading symbol ACN. It's been a tough year for the consulting giants. Investors fear a decline in the need for them, especially their expensive services, in a world where executives can simply use "cloud" for advice.

But look, Accenture shares have risen more than 15% this week after the company beat expectations and delivered optimistic guidance. The good news is that the sky doesn't fall.

Reports of Accenture's demise appear to have been premature.

I still have genuine questions about whether artificial intelligence will reduce billable working hours over time and make their key talent more expensive. This stock has been under close scrutiny in my investment portfolio.

I am pleased with the gains, but honestly, I don't see enough in this earnings report to warrant lifting that strict scrutiny. Accenture is still under observation, Dan.

I think executives and companies will gravitate towards the cheapest option possible when it comes to consulting, and if Accenture doesn't adapt to the times, it could be in trouble.