Generative AI Consulting: Costs, Returns, and Strategic Advantages

Chatbots that generate original content based on user prompts (Generative AI) have sparked debate on their true potential. Consulting firms, however, seem to be believers. They're pouring significant resources into this technology, convinced it can revolutionize businesses.

Here's a glimpse of their commitment:

• 埃森哲 is doubling its AI workforce to 80,000 with a $3 billion investment.
• KPMG struck a $2 billion deal with Microsoft for Cloud and AI services, aiming for a $12 billion revenue boost.
• 普华永道 unveiled a $1 billion "3-year AI roadmap" focusing on enhanced AI customer offerings, tech partnerships, and 65,000 employee training.

While McKinsey, Boston Consulting Group, and Deloitte haven't disclosed specific figures, they've all published insights on how Generative AI can benefit potential clients with their guidance.

The success of these investments remains to be seen, but consulting executives report high client demand for Generative AI services. Industry expert Michele Goetz (Forrester Research) confirms this, stating clients are paying millions for implementation assistance.

The driving force? Clients anticipate Generative AI applications to recoup consulting fees within three months through cost reductions and revenue increases.

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The Price Tag of Generative AI Consulting

Consulting firms aren't shy about charging a hefty sum for their expertise in bringing Generative AI to life for clients. Michele Goetz of Forrester Research sheds light on the cost range, which can vary depending on the project scope:

• Simple projects start at $500,000.
• Mid-sized projects range from $2 million to $5 million.
• Complex, multi-phase projects can reach $10 million to $50 million.

These figures underscore the significant investment companies are making to harness the potential of Generative AI.

But for SMEs, such high costs can be a major barrier to entry.

At Abstrabit Technologies, we understand the importance of Generative AI for businesses of all sizes. That's why we offer a unique consulting approach that delivers exceptional value at an optimized price point and with a quick turnaround time. We'll work with you to identify the most impactful use cases for Generative AI within your organization and develop a cost-effective strategy to bring your vision to life.

Don't let hefty consulting fees hold you back.

Generative AI Consulting: Payback, Problems Solved, and Picking the Right Partner

Fast Track to ROI?

Forrester Research believes companies can recoup their investment in Generative AI consulting very quickly. They report client expectations of payback within three months of deployment, with some seeing results in as little as two to eight weeks. The overall timeframe can range up to three to six months.

These impressive returns come from both cost savings and revenue generation. One example involved a call center cutting costs by a staggering $80 million annually. Generative AI virtual assistants handled basic inquiries, freeing human agents for more complex tasks. Additionally, AI-powered responses improved accuracy and customer satisfaction, leading to higher Net Promoter Scores.

On the revenue side, a cruise line used Generative AI to recommend onboard activities, boosting their bottom line by a remarkable $1 billion. Another success story involved an Asian bank's virtual investment assistant generating an extra $500 million in trading volume.

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What Problems Does Generative AI Solve?

Companies turn to Generative AI consultants for a variety of purposes. KPMG highlights two key areas:

• Large corporations seek to improve productivity.
• Private equity firms aim to enhance deal-making and support portfolio companies in adopting the technology.

Overall, Generative AI consulting helps companies:

• Reshape strategies
• Identify new revenue streams
• Stay ahead of the competition

The "fast movers" are already planning large-scale implementations to gain a competitive edge.

What Services Do Generative AI Consultants Offer?

Companies like Abstrabit Technologies offer a range of Generative AI consulting services, including:

• Prioritization: Helping clients rank Generative AI use cases based on their impact on processes and operations.
• Safe Development: Building secure internal Generative AI tools for employee use.
• Data Preparation: Preparing internal data for safe and effective training of custom Generative AI models.
• Long-Term Strategy: Developing a comprehensive AI strategy to scale and capture the full potential of Generative AI.
• Risk Management: Establishing governance frameworks and tools to mitigate risks associated with Generative AI.

EY also caters to specific client needs, such as:

• Scalability: Scaling data and technology architectures for enterprise-wide Generative AI deployment.
• Leadership Training: Educating board members and C-suite executives on Generative AI.
• Quick Wins: Building high-priority applications to deliver rapid value.

Choosing the Right Generative AI Consultant

Clients evaluate consultants based on their ability to deliver a return on investment. Here's what leading consulting firms offer:

• KPMG: Expertise across various domains like Generative AI engineering, data platforms, risk management, ethical AI use, and business strategy.
• EY: Similar skillsets to KPMG, with an emphasis on execution experience and continuous refinement of Generative AI implementation strategies.
• Forrester: Strategic consulting that challenges clients to innovate and build a clear roadmap for success.

Interestingly, Forrester sees established strategic consultancies like McKinsey and BCG holding an advantage. While they may have initially lacked technical expertise, their strong client relationships opened doors when they added AI capabilities.

Some companies hedge their bets by splitting projects between consultancies. For instance, Mars used one firm to improve pet food bag filling and another for M&Ms boxes.

Ultimately, the best consultant for your company depends on factors like effectiveness, client confidence transfer, knowledge sharing, and innovative fee structures that tie compensation to project outcomes.

Generative AI Consulting: Your Key to Unlocking Future Growth

Innovation is the engine of success in today's competitive business landscape. Generative AI consulting acts as the turbocharger, propelling your organization forward. This specialized approach empowers you to navigate the complexities of AI integration, staying ahead of the curve within your industry.

The benefits are clear:

• Sustainable growth: By optimizing operations with AI, you unlock new levels of efficiency and productivity.
• Stronger market position: Generative AI consulting helps you leverage this cutting-edge technology to differentiate yourself from competitors.

Beyond efficiency, generative AI consulting positions you at the forefront of technological innovation. As generative AI continues to reshape various aspects of business, partnering with a knowledgeable consulting firm becomes crucial.

These seasoned professionals act as your guides, helping you:

• Cut through the hype: They provide clear insights to focus your efforts on strategic AI initiatives with the most significant impact.
• Unlock full potential: Their expertise ensures you maximize the power of generative AI, transforming it from a buzzword to a transformative business tool.

Embrace generative AI consulting and unlock your organization's full potential for future success.