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They’re not wrong. The “AI boom period” is hardly booming, nor sustainable.
Many projects end with little to no deliverable, beyond a PDF report that no-one will read.
Clients are losing interest in asking B4 for help, when they can literally hire a grad and get the same level of experience, from someone who is infinitely cheaper and wants to move quickly on delivery, whereas B4 partners want to maximise hours for more profit.
Seriously, as I’m now in industry, I tell my bosses to just hire someone on a 3 month contract to do what we’d be asking consultants to deliver, and we get more out of that 3 months than just a report or a sales pitch for further work.
Strategy consulting will be the hardest. AI is already creating strategy decks and competitive research benchmarks better than most of the generic crap I see consulting firms produce in a fraction of the time and a fraction of the cost.
Consulting firms better adapt because their bread and butter (fat cat teams billing ridiculous hours) is disappearing. It will take far fewer FTE at much lower margins
“Over promise, under deliver”, I mean that’s just what consulting is lol
Chief
Tech is going to be the next to crash and burn. It’s not like these clients have generated revenue to justify the ridiculous AI investments either. There will be broad correction and then consolidation
Though it is amusing to see that one of the biggest hype of recent history is making clients realize that they probably not need snake oil from consulting companies. Remember metaverse, blockchain ? The partners made so much money on that hype, who couldn’t spell tech.
I’m working with a startup who wanted to move fast, tried AI and realised it has absolutely no value in their business, so they’re scaling their teams up instead.
Investors who initially wanted AI to drive their growth saw this as risky, but can now see how AI isn’t the answer. It may very well be in due course, but right now, companies can see the limitation and just don’t need it holding them back.
Based
"We love our partners, but oftentimes they’re learning on our dime”
This has been true of the consulting industry since the dawn of time 🤣, although it feels especially relevant now