Perplexity's Election Success Is A Masterclass In Intentional Strategy

While other bots scrambled with inaccuracies and biases, Perplexity did the near-impossible: win the public’s trust by being right in predicting the outcome of the 2024 presidential election. How it delivered fact-checked election updates faster than Bruce Lee can kick is a lesson on how boutique consulting firms utilize AI.

You can listen to the full podcast episode here and learn?how this Perplexity pulled it off and why it matters for the future of technology, media, and our relationship with information.

Accuracy Trumps Speed

I like that principle - a lot. My friends and peers know me for slowing down when everybody else panics and rushes. And that's why I am the one they look to when things get tough. Slowing down and reflecting help to gain clarity.

I learned this from a scene in the movie Game of Death where Bruce Lee’s character, Billy Lo, fights his way through a multi-level pagoda, facing increasingly skilled opponents. After showcasing his expertise with the nunchaku in an impressive display, Lee gets trapped. But instead of trying to kick himself to freedom wildly, he calmly sits on the ground, legs crossed, his nunchaks draped around his neck.

Bruce Lee insisted on that scene. It serves as a moment of intense focus and the importance of complete control of himself and being mentally and physically prepared for whatever may come next.

Wait... Did I just call Perplexity the Bruce Lee of AI?

Sure, slowing down for accuracy is impressive, but maybe comparing it to a legendary martial artist who literally broke bones might be overselling it.

For a good reason. In an AI world where everyone’s rushing to be first, Perplexity did something radical: it slowed down, checked in, and then determined its next moves. It partnered with trusted sources like the Associated Press to prioritize accuracy over fast action. This choice set it apart on Election Night, transforming it from “just another chatbot” into a reliable source people could depend on.

Here’s the real takeaway: clients aren’t just after fast answers; they’re after right answers. They absolutely want us on the cutting edge with AI solutions - for their business and our own. And sure, quick wins are great when they’re done right. But at what cost? If racing for a “quick win” with AI results in shallow solutions, flawed outcomes, or even exposes confidential data, trust will erode faster than Arthur Andersen obstructing justice by shredding documents related to its audit of Enron, contributing to one of the largest corporate bankruptcies in history.

That's coming from the guy who claims he’s here to help consultants “banish burnout and scale sustainably” but probably spends more time experimenting with “urgent trigger events” than a door-to-door fire extinguisher salesman. But when I used ChatGPT to fact-check this article, it confidently claimed that Election Day was in 2022. And I am still emotionally confused that it even had me “married” to my best man’s wife - but that's fodder for another story...

All of this shows that consultants using AI must slow down, think through their approach, select the right tools, verify output, reflect on findings, and add their own interpretations and insights. Clients value expertise and precision, and most AI chatbots value speed over accuracy. They even make things up when they don't find the answer. Don't let AI make you be that consultant and deliver quality insights your clients can count on - even if it takes a tiny bit longer, or you, too, will get married to your best man's wife in the alternate AI universe.

Leverage Powerful Partnerships

Because nothing screams "AI innovation" like running to mom and dad's trusted sources to prove it’s “not like other chatbots" Perplexity's strategic partnership with fact checkers like the Associated Press gave it a unique edge during the election coverage.

But wait... Perplexity is officially the social butterfly of the AI world, “strategically aligning” with the AP to deliver... accurate election updates? Riveting stuff. If there's one thing we've all been dying to see, it's a chatbot that "partners" its way to credibility, like it's collecting LinkedIn endorsements.

And here we thought it was hard work, integrity, and expertise that earned client trust - it turns out it’s also about picking the right pals. In contrast, so many boutique consultants in the AI space are lone wolves, or they feel they are too small to swim with the big fish or provide value. The opposite is true.

The AI marketplace for consultants looks like this: Everyone knows AI is the next big thing, but most companies are either scared it will disrupt them or eager to leverage it to grow. They have no idea how to actually implement AI profitably, and Generative AI startups haven’t yet built the specific solutions businesses need.

While AI devs throw billions at building products they barely understand themselves, boutique consultants are the ones showing their clients how actually to make AI profitable.

It sounds crazy: If you were selling generative AI platforms, struggling to make money, burning through billions just to keep the lights on, and watching management consultants charge billions to help companies figure out how to use your technology - wouldn’t it make sense to launch an internal consulting division?

Helping its largest customers tailor the software to their needs” sounds like something a tech developer should do. But they often just don't understand their clients.

Chaos Meets Opportunity

It’s a calculated move. Outsourcing consulting can help them focus on scaling and innovating their products while leaving the heavy lifting of implementation to experts like you. There is precedent.

When Salesforce and SAP first started, for example, They didn’t offer robust consulting services either, and many customers found their implementations expensive and time-consuming. HubSpot underestimated the complexity larger organizations faced and had to rely on external consulting partners to help businesses fully leverage their platform.

That’s why niche consultants and larger consulting firms became indispensable. These developers eventually built partner ecosystems or created certification programs to ensure effective customer implementations.

AI developers are in the same position now. They need specialist consultants to help their clients harness the power of AI. Like Salesforce, SAP, and Hubspot before, they have great products, but they do not have enough expertise to tailor them to client needs. Because AI is so new, the playing field is wide open. AI developers are more likely to partner with niche and boutique and even solo consultants than to compete against them.

This approach helps AI developers innovate faster, stay competitive in their core technologies, and grow their companies sustainably while leaving customer-specific adaptations to experts.

Borrow Trust Capital to Enhance Your Reputation

Nothing says “I’m credible” quite like outsourcing your credibility. Seriously. No, it’s not something you just borrow like a cup of sugar from the trustworthy data provider next door.

This "borrowed" trust capital shows clients that you don’t just rely on any AI tools; you leverage the best. When I started my journey as a consultant, I realized that no one wanted to attend any of my webinars. Solution? Call up a friend at Hewlett-Packard to write a paper, invite a peer from Netapp to do a webinar, and rope in a buddy at Facebook to co-present.

No one could have cared less about Andrew Lawless, but in 2009, I could have organized a roundtable about how Facebook crowdsources the cleaning of its toilets, and the auditorium would have been packed - which it was. At the Inter-American Development Bank in DC. About Crowd-Sourcing. Localization.

Here’s the kicker – when you’re niche and solo like I was back then, this “borrowed credibility" goes a long way. When Adobe acquired Day Software, which is now Adobe Experience Manager, it was not me in 2010 who drove the implementation of the content management system at OCLC because their professional service team 1.) did not really understand the technologies and data formats their tool needed to integrate with, and 2.) did not understand basics of localization, a boutique profession and industry at the time.

Through that work, I had access to and influence on development roadmaps. It was easy to get a speaking gig at major conferences where Fortune 500 companies approached me to help them help Deloitte and Accenture help them. The Big 5 consultants had broad knowledge of localization but no relevant experience with it. And soon I would find myself testifying before the US Senate on the importance of my industry on the US economic security.

No matter how small you are, even a solo consultant can make a significant impact on their clients and the industries they serve.

Building Trust with Real-Time Client Support in

Perplexity gained user trust not only through its accuracy but also by being incredibly responsive. When issues or inaccuracies arose, Perplexity’s team jumped into action, addressing user feedback in real time to uphold their commitment to reliability.

I am not saying that if you hop onto feedback fast enough, users will forgive anything — even the fact that they’re trusting their election updates to a chatbot. No client ever said: "I need a consulting firm that promises to apologize quickly if the AI screws up.”

But for boutique consulting firms using AI, transparency and responsiveness aren’t just customer service skills; they’re essential to building trust and long-term client loyalty, especially when AI is involved.

Communicate How AI Tools Operate and Their Limitations

The key to mastering AI in consulting is making sure clients know it might mess up. AI is a powerful tool, but it’s not infallible, and clients may have concerns about AI’s limitations or the potential for error. By being upfront about what AI can and cannot do, you’re managing expectations from the outset.

You don't have to be apologetic and state, "Well, it’s not perfect, but at least we’re honest about it!” But if you can’t blow your clients away with flawless tech, at least blow them away with your brutal honesty about its flaws.

That's harsh, I know. However, clients will appreciate your honesty and transparency, which strengthens their trust in you as a consultant. For instance, if an AI tool you’re using relies on historical data for predictive analytics, let clients know that projections might need further validation to account for recent trends or anomalies.

Be Proactive in Addressing AI-Related Challenges

This is my way of motivating you to make sure you actually do your job. Checking if the data are good or making sure the model isn’t wildly biased is one of your duties when working with AI. It's not about scrambling to patch things up before clients catch on.

AI projects come with unique challenges, such as data quality issues, model bias, or interpretability concerns. Addressing these head-on demonstrates integrity and gives clients confidence in your process. If you notice that data input is causing skewed results, for example, explain the situation and outline corrective steps before the client even notices a problem. This proactive approach can significantly enhance your reputation, as clients appreciate knowing you’re dedicated to maintaining accuracy and accountability.

Transparency about AI’s capabilities, coupled with proactive communication, shows clients you’re dedicated to using AI responsibly and ethically. This level of openness and engagement not only builds credibility but also encourages clients to see you as a trusted advisor rather than just a vendor.

Like Perplexity, boutique consulting firms can stand out by combining transparency and agility. It's less about making AI seem like a delicate piece of tech in constant need of rescue, but promptly responding to client feedback, staying accessible during high-stakes phases, and being open about AI’s strengths and limitations make all the difference. In a field as transformative as AI, this approach will keep clients coming back, knowing they can count on you to guide them responsibly through their AI journey.

Integrate, Don’t Over-Automate

This may sound strange at first. The pinnacle of AI strategy is… not turning into a robot? Nothing says “AI innovation” quite like advising consultants to hold back on automation, right?

The idea is that a philosophy of not?over-automating can elevate the quality of your services. While AI can provide invaluable insights and automation, it’s best used as a complement to - not a replacement for - human expertise. For boutique consultants leveraging AI, this balance is crucial. Integrating AI thoughtfully enables you to automate routine tasks and scale efficiently while still prioritizing the personal, insightful service that clients value.

Use AI to Streamline Data-Driven Tasks

Relegating AI to the data assistant role, like a glorified intern just handling routine, data-heavy tasks, such as data collection, processing, and basic analytics, are prime candidates for automation. For example, AI tools can quickly gather, clean, and organize client data from multiple sources or generate initial analytics that give you a solid starting point for deeper analysis. Automating these repetitive tasks saves you valuable time, allowing you to focus on the interpretation and application of this data for your clients.

In this way, AI acts as a powerful assistant, handling the groundwork so you can bring context and strategy to the insights. Clients want you to do more than just dump numbers in their laps; they expect you to tell them what it means and how to act on it. Use AI as a dutiful little sidekick, gathering data so that you can be the “real” expert who swoops in and provides “context.” You'll add the essential strategic layer that’s unique to your expertise.

Focus on AI-Enhanced Decision Support, Not Replacement

Clients come to boutique consultants for tailored guidance, creativity, and strategic thinking - all areas where human intuition and experience are indispensable. Use AI like a fancy calculator that spits out trends for humans to interpret. It's here to support and refine your decision-making rather than replace it. For instance, if you’re consulting on market trends or business growth strategies, AI can aggregate and analyze market data to surface key trends or patterns. Ultimately, you are the brains of your consulting operation, and expert judgment and industry knowledge shape the final recommendations.

This approach positions AI as a valuable tool that enhances your ability to advise and support clients rather than taking over the advisory role. The combination of data-driven insights and human intuition gives clients confidence that they’re receiving a balanced, informed perspective.

Carve a Niche in Boutique AI Consulting

Perplexity carved out a niche by focusing on reliable election night data. Boutique consultants thrive when they do the same—offer something truly unique. Set yourself up as the world’s go-to expert on a single specialization, show how your approach solves specific problems, and watch clients come to you as the expert.

That's the one piece of advice that my clients push back on the hardest: "In the grand vision for AI consulting, we’re supposed to play small, stick to one task, and hope clients think that’s worth the investment. Inspiring stuff. Sure, let’s ignore the vast potential of AI to disrupt multiple industries."

But Perplexity is my case in point. They succeeded by focusing on something specific: reliable, real-time election night data. Rather than being a jack-of-all-trades chatbot, it became the go-to for accurate, timely election updates - setting it apart in a crowded AI market. For boutique consultants, this strategy is a powerful reminder: If you want to be someone to everyone, you'll be no one to anyone.

Specialization not only makes you memorable but also positions you as the expert clients need to solve their unique challenges. It also makes you better in delivering your services at scale.

Identify a Niche Aligned with Your Expertise and Passion

Specialization starts with identifying the intersection of your expertise, industry demand, and personal interest. Choose a focus area where you excel, ideally one that also excites you and aligns with emerging industry needs. So, if you’re great at machine learning for healthcare compliance, go for it! Or, if you’re passionate about AI for sustainable practices, focus on how your services can drive sustainability in industries like agriculture or manufacturing.

By zeroing in on a niche, you position yourself as a specialist rather than a generalist. Clients with specific needs are more likely to trust someone who has refined knowledge in their area rather than a consultant who dabbles in various domains. The narrower your expertise, the clearer it becomes to prospective clients who exactly you serve and how you can deliver solutions tailored to their challenges.

Develop a Unique Value Proposition Based on Your Niche

Once you’ve chosen your niche, refine your value proposition to address the unique problems clients face within that domain. Think about what differentiates your services from others in the market. Are you an expert in reducing manufacturing waste through AI-driven predictive maintenance? Or maybe you specialize in helping financial institutions leverage AI for fraud detection while maintaining compliance.

A strong, niche-focused value proposition should answer the following questions:

• What specific problems do you solve?
• Why are your solutions uniquely effective for this niche?
• What tangible results can clients expect?

I know, telling clients what they’re actually paying for is not exactly the groundbreaking stuff you were looking for to advance your AI consulting.

But new technology does not change basic human psychology. For instance, a value proposition might be: “We help mid-sized food manufacturing companies reduce waste and optimize operations by implementing AI-driven predictive analysis, saving them an average of 15% in operational costs within the first year.” This level of specificity speaks directly to potential clients, making it clear how your expertise will benefit them.

Trust Above All

Perplexity showed us a critical truth: trust is the most valuable currency you can earn with clients. In AI consulting, where complex data, algorithms, and advanced technology are at the core of your service, building client trust requires more than just delivering results - it’s about demonstrating ethical practices, transparency, and genuine investment in your clients’ success.

AI can seem like a black box to clients, especially those unfamiliar with its inner workings. To build trust, start with transparency about how AI works, what it can do, and—importantly—what it can’t. Clients value honesty, so openly discuss the limitations and potential challenges of the AI solutions you’re recommending. Setting clear expectations upfront allows clients to feel informed and empowered, and it reduces the risk of surprises down the line.

For example, if an AI model’s predictions are based on historical data and could be impacted by sudden shifts in trends, let your clients know. By explaining that AI enhances their decision-making but doesn’t offer guaranteed outcomes, you manage expectations and build trust by being honest about the technology’s capabilities.

Commit to Data Ethics and Responsible AI Practices

As an AI consultant, you’re often dealing with sensitive data and powerful algorithms. Whether you’re encrypting data, ticking off compliance checkboxes (GDPR, CCPA, the whole gang), or doing some backflips to minimize biases in your models, you need to put that front and center. Show clients you’re the trustworthy partner they deserve, not someone who’ll drop the ball when the heat is on.

Being transparent about how you protect client data and minimize biases in AI models shows clients that you respect their privacy and value ethical standards.

And, for the love of ethical standards, don’t just say you’re responsible — prove it. In a world where The Big 5 consulting firms are taking shortcuts or scraping data in shady ways,?your?commitment to responsible data handling makes you a desired alternative.

Prioritize the Client’s Long-Term Success Over Short-Term Wins

Flashy results might get you applause for a minute, but if you're not thinking about your client’s long-term journey, you're missing the point.

I’ve nearly made the mistake of putting too much faith in AI myself. To stress-test a consulting offer, I trained my AI to evaluate it using the following formula:

Value = (Outcome x Acceleration x Possibility)/(Expenses x Effort x Distress)

The idea was simple: A score greater than 10 was good, over 20 was better, and a score approaching infinity would represent the ideal. The reasoning behind this is that if you can help a client achieve better results faster and unlock new possibilities without incurring any cost, effort, or stress, the formula would divide the value by zero, which equals infinity.

My clients loved it until we realized that my AI would crank out a different number each time we ran the formula with the same offer. We needed to take more time to define how the AI was supposed to score each numerator and denominator variable.

I learned to forget the temptation to chase short-term metrics and instead position AI solutions as sustainable, scalable strategies that align with the client's big picture. We're here to be a partner in their ongoing success.

Take a long-term view: Instead of simply optimizing for a sales spike that lasts a week, help clients harness AI to dig into deeper insights like customer behavior, trends, and patterns that fuel growth over time. Offering strategies that align with their future ambitions not only solidifies your role as a true partner but also builds trust that keeps them coming back for more.

Here’s the Takeaway

Perplexity didn’t just report the election; it redefined how AI can build trust in real time. And for independent consultants, it’s a roadmap to stand out, use tech thoughtfully, and earn the kind of client loyalty that builds businesses.

Think about how you can bring some of these “Perplexity Principles” into your own consulting work! Could you deepen partnerships, build in more client feedback, or focus on a niche that only you can deliver?

Listen to the Podcast episode here.

~Andrew "AI-First" Lawless