Willis Towers Watson (WTW) reported higher second-quarter revenue but lower net income as acquisition-related costs weighed on earnings, while announcing a $625 million investment to accelerate artificial intelligence and automation across the business.

For the quarter, revenue increased 9% year over year to $2.47 billion, with 5% organic revenue growth. Net income, however, declined 30% to $231 million, reflecting transaction and integration costs related to the Newfront acquisition, higher interest expense and an increased tax provision.

The company reported an adjusted operating margin of 19.5%, an improvement of 100 basis points compared with the same period last year.

$625 million AI acceleration programme

WTW said it will invest $625 million through its Propel AI acceleration programme to expand the use of artificial intelligence and automation across the organisation.

The initiative is expected to generate approximately $350 million in net run-rate savings by 2028 and help the company achieve a 30% adjusted operating margin. Of the projected $400 million in total savings, approximately $50 millionwill be reinvested to support future growth initiatives.

Chief Executive Officer Carl Hess said the programme builds on AI investments made over the past 18 months, including capabilities added through the acquisition of Newfront.

“Our strong top- and bottom-line performance this quarter demonstrates the continued progress we’ve made in embedding AI and automation across the business to help us deliver more effective and efficient solutions for our clients.”

Hess acknowledged that automation would affect some roles but said the company’s strategy focuses on redeploying employees into higher-value work.

“It’s true that we’ll probably, as we automate less complex and high-volume work, see some headcount reductions that go along with that. But we view a central element of Propel as reskilling and redeployments … moving capacity toward the client-facing and judgment-based work that’s going to drive our growth.”

Growth across business segments

WTW’s Health, Wealth & Career segment reported revenue of $1.27 billion, an increase of 8%, with 4% organic growth.

Revenue in the Risk & Broking segment, which includes Corporate Risk & Broking and Insurance Consulting & Technology, rose 11% to $1.16 billion, with 7% organic growth.

Corporate Risk & Broking also delivered 7% organic revenue growth, supported by new business generation, double-digit expansion across most specialty lines and strong client retention.

According to Chief Financial Officer Andrew Krasner, North America led growth, particularly in construction, natural resources, surety and mergers and acquisitions.

Market outlook

Commenting on market conditions, Krasner said the insurance pricing environment remained competitive.

“The pricing environment remains competitive. In the second quarter, insurance rates continued to decline across most lines, with U.S. casualty a notable exception, where rates continue to rise.”

WTW said it continues to expect mid-single-digit organic revenue growth for the full 2026 financial year as it advances its AI and automation strategy while integrating the Newfront acquisition.