AI’s New Sherpas: Consultants Cash In on Generative AI Frenzy
The arrival of generative AI tools like ChatGPT in 2022 has sparked a rush among businesses to understand and leverage this transformative technology. But while tech companies grapple with how to monetize this burgeoning field, consultants have already begun reaping the rewards. From Boston Consulting Group (BCG) and McKinsey & Company to IBM and Accenture, these firms are seeing an unprecedented surge in demand for their expertise in navigating the complexities of generative AI and implementing it effectively.
Key Takeaways:
- Consultants are becoming the "Sherpas" for businesses navigating the generative AI landscape. Companies are turning to them for guidance on everything from regulatory compliance and customer service solutions to developing guardrails for AI systems.
- Generative AI is generating significant revenue for consulting firms, with some reporting that up to 40% of their business is now AI-related. This marks a return to the dot-com boom days, where consultants were in high demand to help companies understand and implement new technologies.
- While generative AI offers immense potential, its use is not without challenges. Hallucinations, or providing inaccurate information, is a prevalent issue, and businesses are still figuring out how to ensure AI systems provide reliable outputs.
- Consultants are playing a crucial role in helping mitigate these challenges. They are working with companies to develop robust systems, conduct extensive testing, and implement safeguards to minimize the risks associated with generative AI.
The Generative AI Gold Rush
The demand for tech-related consulting echoes the frenzy of the dot-com boom in the 1990s. Companies are increasingly seeking advice on how to harness the power of generative AI, echoing a sentiment expressed by Nigel Vaz, CEO of Publicis Sapient: "Companies are saying: ‘Don’t tell me what to build. Tell me what you can build.’"
Consultants are responding by showcasing their capabilities through conferences, demonstrations, and tailored solutions. In May, BCG hosted a conference in Boston, featuring booths from OpenAI, Anthropic, and other AI leaders, showcasing their own expertise in robotics and programming.
Impact on the Consulting Industry
Generative AI is fueling a surge in the consulting industry, which has seen a resurgence after a post-pandemic lull. The management consulting industry in the US is projected to hit $392.2 billion in revenue this year, a 2% increase from the previous year, according to IbisWorld.
Navigating the Generative AI Landscape
The specific areas where companies are seeking consulting advice are diverse:
- Regulatory Compliance: With the EU enacting laws regulating AI, consultants are advising businesses on how to comply with these regulations.
- Customer Support: Consultants are designing AI-powered customer support systems, aiming to improve efficiency and provide 24/7 support.
- Error Prevention: Consultants are helping businesses develop guardrails for their AI systems to prevent "hallucinations" and ensure accuracy.
Challenges and Solutions
Despite its potential, generative AI is not without its limitations. Hallucinations have emerged as a significant concern, as AI systems can generate incorrect or nonsensical information.
IBM’s experience with McDonald’s highlighted the challenges of implementing generative AI in a customer-facing environment. The company’s AI-powered drive-through ordering system encountered issues with inaccuracies, leading McDonald’s to terminate the project. However, IBM is actively working with Dun & Bradstreet to develop "Ask Procurement," an AI system that analyzes supplier data, while ensuring traceability to original sources to address concerns about hallucinations.
McKinsey’s work with ING Bank showcases the meticulous efforts required to ensure AI-powered customer service chatbots provide accurate information. This involved extensive testing, tracing issues back to outdated websites, and implementing safeguards to prevent discriminatory or harmful language.
Reckitt Benckiser’s collaboration with BCG demonstrates the potential of generative AI in marketing. Reckitt’s AI platform can create localized ads in multiple languages, streamlining the marketing process and saving time.
The Future of AI Consulting
The generative AI landscape is constantly evolving. As companies like OpenAI continue to release updates to their image and language models, consultants are providing invaluable guidance to businesses navigating this dynamic field. Becky Verano, Vice President of Global Creativity and Capabilities at Reckitt, underscores the need for structure and expertise in this space: "You’re constantly having to move to the latest trends, to the newest findings, and learning each time how the tools respond. There’s not an exact science to it."
As the generative AI revolution continues, consultants will likely remain central to navigating its complexities and maximizing its potential. They are the "Sherpas" of this emerging technology, guiding businesses through an uncharted but potentially transformative landscape.
