Let's state the obvious in a way that almost seems original. In the California Gold Rush, it wasn't always the miners who struck it rich. Rather, it was the folks selling them the picks and pans! The AI boom feels a bit similar. Businesses scrambling to keep up in search of their nugget of AI success are turning to a new kind of gold prospector - consulting firms with a plan (and a hefty hourly rate!).
Our Venn diagrams are better than yours. Boston Consulting Group, McKinsey, KPMG...these are names that have been around for ages. From snazzy studies and reports to grandiose business models and revenue ideas, consulting firms are often the first wizards that businesses turn to. AI is no different. In fact, the management consulting industry is experiencing a post-pandemic boom, with sales expected to reach $392.2 billion this year, a healthy 2% increase from last year due in large part to generative AI. Put a different way, many of the AI companies these consultants follow and track are in all likelihood barely generating enough revenue to cover their office lunches.
Like Planters, the guidance and results can be a mixed bag. These consulting firms charge boatloads of money. Consulting firms are tackling the AI revolution on multiple fronts. Some are helping companies navigate the regulatory landscape as regions like the EU implement AI laws. Others are designing AI-powered customer support systems, while still others are building safeguards to prevent errors in AI applications. With that said, the track record of these firms can be pretty dicey especially if you use their calculators to gauge ROI.
Irony is the universe's way of reminding you that you should have planned better. In choosing to work with a consulting firm, businesses should focus on doing their due diligence to prevent an expensive engagement into a costly one. While relevant expertise is a given, seasoned consultants are likely more able to provide the perspective and guidance than younger, inexperienced ones. The last thing you want to hear is a barely out-of-college consultant starting off a sentence with "Throughout my career..." Sorry, that's simply not credible regardless of how charming or creative their ideas are. Creative is good, sustainable is better. And be willing to push back. Consulting firms will always lead with their most expensive, yet not always the most useful programs, so do your research and get smart about AI before engaging.
Yes, your business may be looking at them for guidance, but it doesn't mean you have to be like a deer in headlights https://lnkd.in/gaV5HGBr #managementconsulting #business #artificialintelligence #generativeai #technology #leadership #trends
