Impact of AI on the Consulting Industry

Quite intrigued. Probably it is happening already. Happen to read a very interesting article on the subject by Soren Kaplan whose link is here: The Business Consulting Industry Is Being Disrupted, and Nothing Can Stop It | Inc.com; Very interesting take aways. Reading this one gets a sense of what is happening now and also what could happen going forward. Read on:

The consulting industry is going through a major transformation, and this disruption is changing everything. Traditionally, consulting has been all about human expertise—consultants analyzing data, offering advice, and guiding businesses. But now, with the rise of artificial intelligence (AI) and digital technologies, the way consulting is done is rapidly evolving.

Imagine a world where AI can quickly sift through massive amounts of data, find patterns, and even suggest strategies with pinpoint accuracy. This is no longer science fiction; it's happening now. As a result, the old way of doing things—where consultants would spend weeks or months researching and developing recommendations—is being replaced by faster, more efficient methods. AI is taking over many of the routine tasks that used to require hours of human effort.

This shift means that the traditional business model, where consulting firms charge by the hour, is becoming outdated. Clients are no longer interested in paying for the time it takes to do something; they want to pay for the results. They're looking for tangible outcomes and measurable success, not just lengthy reports. This is pushing consulting firms to rethink how they price their services, moving towards models where fees are based on the value delivered rather than the hours worked.

At the same time, the knowledge that once made consulting firms valuable—proprietary frameworks, specialized expertise—is becoming more widely available. Thanks to the internet and open access to information, clients can now find many of these tools and techniques on their own. This means consulting firms can no longer rely on having exclusive knowledge; they need to offer something unique and tailored to each client's specific needs.

Another big change is the rise of independent consultants and small, specialized firms. With platforms like Upwork and Talmix, businesses can now connect with top-tier experts without going through traditional consulting firms. These freelancers offer flexibility and often come at a lower cost, making them an attractive option for many clients. This is increasing competition in the industry, forcing larger firms to innovate and find new ways to stay relevant.

As clients demand more from their consultants, the role of the consultant itself is evolving. Instead of just being advisors, consultants are now expected to be partners in the implementation process, helping businesses navigate the complexities of adopting new technologies and strategies. This requires a different set of skills—more focus on collaboration, communication, and the ability to drive change within an organization.

While all these changes may seem daunting, they also present new opportunities. Consulting firms that embrace these shifts—by integrating AI, adopting new business models, and offering specialized, results-oriented services—can thrive in this new environment. There's a chance for growth and innovation, but it requires a willingness to adapt and rethink how things have always been done.

Going by what is said, one is not certain what sort of impact it will have on Big 4 consulting. But, its landscape is changing for sure. Such is the impact of AI and it is all pervasive for sure. In the end, the consulting industry is being reshaped by these disruptions, and those who can adapt will find new ways to succeed. It's a time of change, but also a time of great opportunity for those who are ready to embrace the future.