In just a short time, major consulting firms like Boston Consulting Group (BCG), McKinsey, IBM, and Accenture have raked in millions of dollars selling AI services.
According to The New York Times:
- BCG now derives a fifth of its revenue from AI, up from zero just a few years ago.
- McKinsey expects 40% of its business to be AI-related in the near future.
- IBM has achieved over $1 billion in AI sales.
- Accenture booked 300 million in AI-related sales last year.
The Times reports that the work is varied and depends on the client. Big firms are offering services that cover everything from regulatory compliance to AI for customer support to setting up guardrails for AI usage.
What does this mean for business navigating AI?
I got the scoop from Paul Rutzer, founder/CEO of the Marketing AI Institute Episode 104 of Artificial Intelligence Show.
Red hot demand
The numbers make one thing clear:
AI services are in demand.
“We definitely see it ourselves,” says Rutzer. “We talk to large organizations every day who are looking for guidance.”
Guidance on what?
Well, basically everything related to AI.
“They're trying to figure out their own roadmaps for generative AI, trying to change policy, management, education and training,” Reutzer says. “These are the needs of basically every company we talk to, and it's a huge opportunity for consultants.”
Big problems, big solutions
What does that opportunity look like?
It all comes down to realizing that most companies are further behind than you think.
“I think there's a tendency to overestimate how far companies are in this,” Rutzer says. They often struggle internally with barriers and bureaucracy that slow adoption.
“They need help figuring it all out,” Rutzer says.
“They need objective third parties to work with various stakeholders across the organization, and balance the need to adhere to guidelines and protect data to envision what's possible in the business. “
What companies really need.
So, what do companies really need from consultants? According to Roetzer, businesses need to take basic AI-related initiatives such as:
- Figure out their overall AI strategy
- Choosing the right platforms
- Identifying preferred use cases
- Looking beyond efficiency in innovation
- Change of management
- Education and Training
“It's very difficult for existing teams within organizations that all have full-time jobs with no formal training in deep understanding of AI,” he says.
Paralysis problem
One of the biggest short-term opportunities for consultants is to make things easier for clients right out the door.
Roetzer notes that many businesses seem paralyzed by trying to tackle everything at once.
“They're trying to solve the big platforms. They're trying to solve all the macro-level things that touch every part of the organization. And they lose sight of what's unique within teams. How much value can be gained by unlocking use cases or individuals,” he explains.
This is where companies (and their advisors) can create immediate value by focusing on low-risk, high-reward use cases.
“There's a lack of understanding that there are thousands of use cases, many of them completely harmless, that include data leaks, privacy concerns, regulatory violations, or there is no risk of ethical problems.”
“If people took more initiative to just start identifying single use cases where they can make an impact — and then stack those use cases — we'd go further.”