Leading the AI Revolution in Consulting Now

AI is here, and its message is clear: Whatever you know, AI knows better or can do faster. It's reshaping industries at an unprecedented pace, eradicating entire professions and even industries. Consultants are next. But there is a bright future in leading the revolution.

It's not just an option - it’s necessary for survival. Those who leverage AI with an AI-First Strategy will thrive; those who don’t will fade into obscurity.

The Unprecedented Opportunity - and Risk - Presented by AI

For niche and boutique consultants, AI can be an unprecedented opportunity for growth or a quick death. We are witnessing a scale and pace of change never seen before in history. It’s already happening.

As Sam Jacobs, Co-Founder of Ammo.com predicts, AI adoption among small businesses is set to grow rapidly in 2024, enhancing efficiency and reducing manual errors in areas like marketing, HR, and customer service. And this guy sells bullets.

Even quality control in manufacturing is now dominated by AI-powered vision systems. These systems are outperforming human inspectors, ensuring consistent product quality at unprecedented speeds. And according to a study by Grand View Research, the global call center AI market size is expected to reach USD 7.08 billion by 2030. That means more call centers will adopt AI and automation technologies to streamline operations and drive business growth.

And the list goes on.

Consultants Are Not Immune to AI's Impact

If you think that consultants are safe, think again - AI is already creeping up fast:

Gathering, cleaning, and analyzing data? There’s an AI for that.

Building financial models and forecasts? There’s an AI for that.

As Ravi Kumar S, CEO of Cognizant, points out, AI is democratizing access to advanced technologies, enabling small teams to make significant impacts and large companies to achieve levels of speed and innovation never seen before.

For example, Cognizant Neuro AI enables users to analyze complex scenarios with multiple objectives using a ChatGPT-style interface. This platform helps optimize stock levels, reduce spoilage, dynamically adjust prices, and efficiently allocate support staff. Such tools empower employees by expanding their knowledge and providing the resources to make informed decisions swiftly.

There’s AI for almost everything available in the market today:

• Mapping current processes, identifying bottlenecks, and suggesting optimizations.
• Assessing risks in real-time, predicting impacts, and suggesting mitigation strategies.
• Comparing performance metrics against industry benchmarks, identifying gaps, and suggesting improvements.
• Tailoring onboarding experiences for new hires, ensuring they receive the training and resources most relevant to their role.
• Reviewing utility and phone bills, comparing charges against historical data, contract terms, and typical usage patterns.
• Tracking vendor performance over time, analyzing factors like service quality, responsiveness, and billing accuracy.
• Providing virtual coaching tools that offer real-time feedback and guidance to clients.

You name it, there’s an AI for that.

The Future of Consulting in an AI-Dominated World

So, is this the end of consulting as we know it? AI-First Strategists say the end has already begun.

We’ve seen technologies wipe out entire professions and industries before:

Telephone operators who connected calls manually were made obsolete by automated switchboards and later, digital communication. Door-to-door encyclopedia salespersons? Well, you know - Amazon. Remember library card catalog managers?

While AI hasn't completely replaced senior management jobs yet, it has started to automate and augment certain aspects of these roles. Up until now, consultants have played a role in shifting how senior management operates. But now it seems that the consultant role itself is on the chopping block.

Their clients are changing and adjusting faster than their consultants. As one VP of a Fortune 500 company recently told me: “If I am further ahead of the AI curve than my consultant, of what use is the consultant?”

“If I am further ahead of the AI curve than my consultant, of what use is the consultant?" - Fortune 10 VP

Chief Financial Officers spend less time on data-driven tasks and more on strategic financial planning and decision-making, Chief Risk Officers rely on AI to automate risk assessments and monitor real-time risk indicators, and CEOs rely on AI-generated insights for strategic decisions.

AI tools analyze potential acquisition targets for businesses and analyze market trends, customer feedback, and competitive products to guide product development and innovation strategies. Chief Innovation Officers use AI to inform product design, development timelines, and go-to-market strategies.

What is the Role of Consultants in the AI Era?

Does the future still hold a role for niche and boutique consultants?

AI-First Strategists say: “Yes!”

Just as bookkeepers are becoming online accountants and retail salespeople are morphing into e-commerce specialists, niche and boutique consultants will transform into different roles to stay relevant and competitive, and deliver greater value to their clients.

As AI democratizes access to enterprise-scale capabilities, it also elevates the value of uniquely human attributes. While businesses of all sizes stand to gain efficiency and productivity, differentiation will increasingly hinge on human ingenuity.

And that’s where consultants come in.

Consultant Creativity: The Key to Lead AI-First Strategies

Consultant creativity will be the source of entirely new products and services that don’t exist today and are made possible by technology. In the past, consultants referred to this as “problem-finding.” AI can help consultants address known issues, but humans will be the ones finding new uses for AI in areas we are not aware of today.

Take, for example, David Jankowsky, founder and CEO of Francis Energy, who, although not yet fully implementing AI-driven solutions, acknowledges AI's potential to play a crucial role in managing complex operations like EV charging networks in the near future.

Consultants traditionally focused on strategy or operations may need to evolve into digital transformation advisors. With an increasing focus on environmental, social, and governance (ESG) factors, consultants specializing in traditional business strategy or risk management may need to help clients develop and implement sustainable practices, comply with ESG regulations, and improve their environmental and social impact.

Management consultants who still rely on qualitative analysis may need to transition into roles that involve leveraging big data, predictive analytics, and AI to provide clients with actionable insights that inform strategy and operations.

"I have read about 2,000 pages to learn more, assigned my senior team to the development of AI uses at our company, and we have begun to use it" - Michael Canty, President and CEO of Alloy Precision Technologies Inc.

Consultants who focus on business development or corporate strategy may need to morph into innovation strategists. Those specializing in employee engagement or HR may need to transition into roles focused on creating initiatives that promote employee well-being, mental health, and work-life balance.

Supply chain consultants may need to evolve into roles focused on supply chain innovation and resilience. This may involve helping clients adapt to disruptions, integrate new technologies, and optimize their supply chains for efficiency and sustainability.

Niche and boutique consultants have the unique opportunity to guide businesses through this transformative period. By positioning themselves as leaders in AI-First consulting, they can grow their client base and ensure relevance in the years to come.

Critical Questions for Consultants to Stay Relevant

Consultants who integrate AI into their services can offer unparalleled value to their clients. As they transition to an AI-driven world, it’s essential to ask themselves:

• How can we upgrade our offer with an AI-First Strategy?
• Where can an AI-First Approach set us apart from the competition?
• What capabilities can we give our clients with AI-First Thinking?

These questions aren’t just rhetorical—they are crucial for staying relevant in an increasingly automated world.

The Urgent Need for Consultants to Act Now

There are immediate opportunities to act now. Despite AI’s clear benefits, many businesses, large and small, hesitate to adopt it. Why? The reasons are varied but often boil down to:

• Unclear Expectations: Many are unsure about what AI can and cannot do.
• Technical Complexity: The perceived difficulty of implementing AI solutions can be intimidating.
• ROI Concerns: Businesses worry about the return on investment AI will bring.
• Upskilling Challenges: There’s uncertainty about how to upskill the workforce to work alongside AI.
• Integration Issues: Integrating new AI technologies into existing systems can be a daunting task.
• Job Security Fears: There’s a fear that AI will replace jobs, leading to resistance from employees.

However, business leaders like Michael Canty, President and CEO of Alloy Precision Technologies Inc., are already taking the initiative, dedicating significant resources to learning about and developing AI applications within their companies. “I have read about 2,000 pages to learn more, assigned my senior team to the development of AI uses at our company, and we have begun to use it in lead generation, vendor identification, the development of marketing materials, and a few other applications,” says Canty. 

There are so many opportunities for consultants here to step in and provide clarity. By developing AI strategies that align with business goals, consultants can demystify AI and help clients see its potential impact.

The Time is Now: AI is Disrupting Every Industry

The opportunities for consultants to stand out today are enormous. There hasn’t been a better time to create new businesses and opportunities since the internet revolution. Just as the internet disrupted industries like retail, media, and advertising, AI is set to disrupt every industry - from healthcare to finance.

Four in ten small businesses report having already tried out different AI tools to see which best suits their individual needs, and almost half (49%) say they plan to incorporate AI soon.

"AI is not just about efficiency; it’s about empowering teams and individuals to achieve innovations that were previously unimaginable." - As Ravi Kumar S notes,

The world is full of executives, business owners, managers, and department leaders who are in desperate need of consulting services that help them create clear AI strategies and roadmaps, define objectives, identify the most impactful AI applications, and set realistic timelines and goals.

CFOs, financial planners, and decision-makers around the globe would love to understand the financial implications of AI investments with detailed ROI analysis reports, financial projections, cost-benefit analyses, and recommendations for AI investment strategies.

Upskilling and workforce development programs and job transition programs will become the next big HR craze. And our friends in HR will need integration blueprints, change management plans, impact assessments, job transition plans, reskilling programs, and internal mobility strategies.

As Ravi Kumar S notes, AI is not just about efficiency; it’s about empowering teams and individuals to achieve innovations that were previously unimaginable.

Lead or Fade: The Choice is Yours

In a world where everything either grows or dies, we have a choice: lead the AI revolution or fade away. As niche and boutique consultants, we have the unique opportunity to guide businesses through this transformative period. By positioning ourselves as leaders in AI-First consulting, we can grow our client base and ensure our relevance in the years to come.

The future belongs to those who adapt and lead. As one small business owner put it in a recent Small Business AI Adoption Survey 2023, conducted by TechnoMetrica for the Small Business and Entrepreneurship Council: "AI automates repetitive tasks, freeing up employees to focus on more strategic and value-added activities, leading to significant increases in efficiency and productivity." Another opined, “AI has de-stressed the workplace.”

Are you ready to lead the AI revolution? The time to act is now.