Here’s what consultants can do.
Artificial intelligence (AI) has emerged as a disruptive force across multiple industries. From healthcare to finance, AI is transforming the way businesses operate and compete in the market.
One industry that is particularly vulnerable to AI disruption is the business consulting industry. As I’ve written about before, the consulting industry is huge, and it’s based on an old business model that’s ripe for change. Business consultants who provide expert advice on strategy development to process improvements sit squarely in the crosshairs of disruption.
Here are three key trends that threaten the consulting industry because they will commoditize the value of consultants and the firms that charge exorbitant rates for their time:
1. AI-Powered Analytics
One of the key areas where AI is already disrupting the business consulting industry is in analytics. Business consultants typically spend a significant amount of time collecting and analyzing data to identify trends, patterns, and insights that can help their clients make informed decisions. However, with the rise of AI-powered analytics tools, this process is becoming faster, more accurate, and more efficient. AI algorithms can analyze vast amounts of data in real time and provide insights that would have taken a team of human analysts weeks or even months to uncover. This means that businesses can get the insights they need faster and at a lower cost than traditional consulting methods.
2. AI-Powered Automation
Another area where AI is disrupting the business consulting industry is in automation. Business consultants often recommend process improvements to their clients to streamline operations and increase efficiency. However, with the rise of AI-powered automation, businesses can automate many of these processes without the need for human intervention. AI-powered automation can help businesses reduce costs, increase efficiency, and improve quality by automating repetitive tasks, reducing errors, and improving consistency. This means that businesses can achieve the same results as traditional consulting methods but at a much lower cost and with less human intervention.
3. AI-Powered Decision Making
AI is also disrupting the business consulting industry by enabling businesses to make better-informed decisions. Business consultants often provide advice to their clients based on their expertise and experience. However, with the rise of AI-powered decision-making tools, businesses can make data-driven decisions that are based on real-time insights and analysis. AI algorithms can analyze vast amounts of data, identify trends and patterns, and provide insights that can help businesses make informed decisions. This means that businesses can make decisions faster and with greater confidence than with traditional consulting methods.
Reinventing Consulting
So what can consultants and consulting firms to do differentiate themselves in a world of artificial intelligence?
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.
