How BCG is revolutionizing consulting with AI: A case study
In a world where AI is transforming every sector, companies are constantly looking for ways to gain a competitive edge. Boston Consulting Group (BCG) is leading the charge by adopting artificial intelligence (AI), particularly generative AI, to revolutionize its internal operations and consulting services. Let's see how BCG is leveraging AI to transform its business processes and the consulting industry as a whole.
The strategic importance of AI at BCG
AI is not just a buzzword at BCG. This is a fundamental element of their strategy. Vlad Lukic, managing director and senior partner at BCG, emphasizes the importance of AI, saying, “It's at the core of our business, right? And it's going to be fundamental to the toolkit and the skills that we have. Need to pass.” AI acts as an enabler, enabling BCG consultants to work at unprecedented speed, thereby allowing them to quickly generate insights and achieve effective results for their clients.
Real-world applications of AI at BCG
1. Interview Processing and Analysis:
Lucic recalls his summer internship, where he had to interview 30 engineers about materials science in three days, transcribe conversations, distill insights and create slides. The labor process took two weeks. In contrast, a recent consultant used BCG's Enterprise GPT to perform a similar function. “On the third day, he had slides and insights to go through,” marvels Lukac. The AI tool transcribed interviews, highlighted key themes, and produced draft presentations in minutes, reducing a two-week process to two or three days.
2. Gene: BCG's Innovative Communication AI:
Another outstanding example of the impact of AI at BCG is the development of Gene, an interactive AI designed to engage with humans and create audio experiences. Originally conceived as a co-host of BCG's “Imagine This” podcast about the future, Jane has evolved into a versatile tool for client engagement and content creation.
“Jane was born for a specific job, really a job, and his original training was to co-host a podcast,” explains BCG Editor-in-Chief Paul Michaelman. However, the potential of the gene quickly became apparent, and its use has expanded. Jane now appears at live events with clients and other audiences, engaging in conversations about the future of AI and thought leadership.
Enterprise GPT: A Game Changer
BCG's Enterprise GPT is the cornerstone of their AI strategy. Rolled out to every employee, this tool ensures that all data remains under BCG's control. Consultants can also create their own GPT for specific engagements to promote innovation and efficiency. More than 3,000 GPTs have been created, solving tasks ranging from document summarization to administrative tasks. “It's really helping us move to a different level of speed,” said Lukac, highlighting its impact on productivity.
The evolution of roles and skills in the AI age
With AI taking over routine tasks, the role of consultants is evolving. Luke emphasized the need for purposeful hard work and sanity testing to ensure junior consultants develop the necessary skills. “We're forcing some of these conversations with our team members, so we can build their skills along the way,” he explains. This includes teaching consultants how to effectively engage with AI tools, ensuring they can provide accurate and reliable insights.
The development of the gene has also given rise to new considerations in the deployment of AI. Bill Moore from BCG Design Studios, which created Jane, explains the challenges of balancing autonomy and control: “We adjust, we work with the temperature to keep that type of Coins and we'll drop it to zero if we really need it.”
Measuring the impact of AI
BCG conducted a scientific experiment involving 750 employees to measure the impact of creative AI on efficiency and performance. The results were compelling. For straightforward tasks, productivity increased by 30-40% for new hires and 20-30% for experienced consultants. However, for complex tasks, productivity is sometimes reduced due to the challenges of debugging AI-generated output. This experience highlighted the importance of understanding where AI can be most effective and applying appropriate pitfalls to ensure accuracy.
Insights from BCG's GenAI experience.
BCG's extensive research into creative AI reveals important insights into its value and potential pitfalls. The study found that nearly 90 percent of participants improved their performance using GenAI for creative ideation. However, when applied to solving business problems—a task outside the tool's current capabilities—many participants relied on the misleading results, resulting in a 23 percent decrease in performance compared to those who did not. Who did not use the tool. This underscores the need for proper training and understanding the limitations of AI tools.
Ensuring accuracy and minimizing risks
To mitigate the risks associated with AI, BCG has implemented several safeguards. Human experts review AI-generated insights, and workflows are designed to ensure continuous monitoring. Additionally, BCG fine-tunes its models based on usage and feedback, reducing the potential for errors.
In Jain's case, transparency and ethical considerations are paramount. Paul Michaelman emphasizes, “We think it's very important… to be completely transparent when we're using technology. And two, to really avoid the human form.” ” This approach extends to Jane's voice, which is deliberately androgynous and slightly robotic to distinguish it clearly from the human.
Governance and strategic implementation of AI
BCGAI uses a dual approach to implementation. While top-down initiatives identify key workflows that can benefit from AI, grassroots innovation is also encouraged. A senior task force focuses on internal support functions and advisory groups, identifying where AI can eliminate bottlenecks and increase productivity.
The future of consulting in the AI age
Looking ahead, AI is poised to reshape the consulting industry. Lukic predicts that within a decade, 50% of existing tasks will be automated by AI, allowing consultants to focus more on managing change and driving adoption in client organizations.
Bill Moore envisions a future where interactive interfaces like genes become a new layer of interaction with technology, potentially revolutionizing accessibility and user experience.
Strategies for Successful AI Adoption
For CEOs considering adopting AI, Lukic offers two key pieces of advice. First, don't wait. Start now to resolve conflicts and build the necessary governance structures. Second, engage the organization. Avoid completely outsourcing AI implementation and, instead, focus on building internal capabilities.
Transforming Consulting with AI
BCG's strategic application of AI, particularly generative AI and conversational AI like Jane, demonstrates how technology adoption can revolutionize internal processes and enhance client service. By leveraging AI tools like Enterprise GPT and Gene, BCG is increasing productivity, fostering innovation, and preparing its workforce for the future. As AI continues to evolve, BCG's proactive approach provides a valuable blueprint for other organizations aiming to harness the power of AI in their operations.