AI & the Consulting Industry: 7 Articles to (try to) Understand…

While AI is poised to disrupt the business consulting industry, there are several hurdles that exist before we see widespread adoption of the technology and related AI-driven processes.

One of the biggest challenges is the lack of trust in AI-powered solutions. Many businesses are hesitant to rely on AI for critical decisions because they don’t fully understand how AI algorithms work or how reliable they are. This means that businesses may need to invest in education and training to build trust in AI-powered solutions. That’s an area where consultants can help.

Instead of fighting AI, consultants and consulting firms can also embrace AI in their service delivery and offerings. By using AI tools like ChatGPT and others to support market research, analysis, and report-writing, consultants can gain both dramatic efficiencies and also elevate the quality of their work.

Whether a new technology is seen as “disruptive” may be in the eye of the beholder. Consulting firms have an opportunity to use it to disrupt business as usual before being disrupted themselves.

What Does AI Mean For The Consulting Industry?

By Matthew Bennett (20 June 2023)

Consulting, by nature, is a creative role. It requires innovative, fresh thinking, highly developed problem-solving skills, and the ability to adapt to complex, changing situations. More than that, it requires finely tuned communication and people skills. Negotiation, influencing and diplomacy are all integral parts of the day job.

While an AI system may be able to generate reports, predict customer behaviour and create financial models, clients hire outside experts for the uniquely human skills that even the most sophisticated machine will never be able to fully replicate.

AI May Soon Replace Even the Most Elite Consultants

By Barry Libert and Megan Beck (24 July 2017)

Over the next few years, artificial intelligence is going to change the way we all gather information, make decisions and connect with stakeholders. Already, leaders are starting to use artificial intelligence to automate mundane tasks such as calendar maintenance and making phone calls. But AI can also help support decisions in key areas such as human resources, budgeting, marketing, capital allocation, and even corporate strategy — long the bastion of bespoke consulting firms and major marketing agencies. According to recent research, the U.S. market for corporate advice alone is nearly $60 billion. Almost all that advice is high cost, human-based, and without the benefit of today’s most advanced technologies. A great deal of what is paid for with consulting services is data analysis and presentation. They are very good at this, but AI may soon become even better. “Quant Consultants” and “Robo Advisers” will soon offer faster, better, and more profound insights at a fraction of the cost and time of today’s consulting firms and other specialized workers.

Will A.I. Become The New McKinsey?

By Ted Chiang (4 May 2023)

The tendency to think of A.I. as a magical problem solver is indicative of a desire to avoid the hard work that building a better world requires. That hard work will involve things like addressing wealth inequality and taming capitalism. For technologists, the hardest work of all—the task that they most want to avoid—will be questioning the assumption that more technology is always better, and the belief that they can continue with business as usual and everything will simply work itself out. No one enjoys thinking about their complicity in the injustices of the world, but it is imperative that the people who are building world-shaking technologies engage in this kind of critical self-examination. It’s their willingness to look unflinchingly at their own role in the system that will determine whether A.I. leads to a better world or a worse one

Is AI Going to Impact the Consulting Industry in 2023?

By Helene Laffitte (7 December 2022)

While examining the question, of how profoundly AI would impact the consulting industry, we must acknowledge the fact that AI is already revolutionizing the way data is garnered and analyzed by consultants.

The way consulting and AI intersect one another today indicates a clear trend — firms are using AI with an aim of improving their performance. In the coming days, it is expected that consulting firms will be using AI even more for projects that require a lot of data and analysis.

So, we can safely conclude that AI would trigger the evolution of the consultancy sector, helping it generate reliable insights while automating a significant part of the process. That does not mean that the replacement of human skills and knowledge is going to happen anytime soon.

Nevertheless, moving forward, AI may play a more critical role in automating complex decisions or assisting consultants to arrive at a decision to optimize value from the consulting spend. But there are no signs of its happening in the immediate future. It may take another 50 years for AI to become a disruptive force of that magnitude, as our co-founder and chairman, Laurent Thomas put it.

The future of consulting in the age of Generative AI

By Prashant Garg (29 June 2023)

As with any emerging technology, there are concerns about the ethical implications of GenAI due to its wide-ranging implications on individuals and society at large. However, they can be effectively managed through robust governance frameworks, transparent decision-making processes, and continuous evaluation to ensure the responsible development and deployment of GenAI.

The key question for the consulting industry is if GenAI can reshape business models, unlock new realms of business value through enhanced customer experiences and drive unprecedented growth. While the future of Gen AI is difficult to predict at this point, the industry continues to take positive strides, such as the following:

• There is a huge market and opportunity to unlock, and we have only scratched the surface, with vast untapped potential awaiting exploration.
• Industries are ideating and realizing several use cases and the continuous discovery of new applications is fueling the boundless possibilities of GenAI.
• The understanding, planning, and management of risks and rewards associated with Generative AI are constantly improving, allowing for more informed decision-making and mitigation strategies.

The Impact of AI on the Management Consulting Industry

By Rhulani Ndlala (6 June 2021)

In the possible future where AI systems both collaborate with and compete with traditional consultants, adapting quickly will be crucial for job security and business continuity. Building new business models that incorporate AI and data science will be of strategic value to consultancies. A keen awareness of AI’s capabilities and development trends will help consulting firms surmount obstacles, fend off new entrants and replace obsolete practice areas. Sharpening the human qualities such as emotional intelligence, presentation skills, critical thinking and commitment to relationships with clients will also offer a valuable competitive advantage in a futuristic world.

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