In this crazy world of Generative AI, where chatbots are spitting out mind-blowing content at the drop of a hat, it makes you wonder, is it all just hype? Well, it seems like the consulting firms are ready to put their money where their mouths are. They’re investing billions to tap into the potential of this technology and improve their business game.
Take Accenture, for example. They’re dropping a cool $3 billion to double their AI headcount to a whopping 80,000. KPMG is no slouch either, pledging to buy $2 billion worth of Microsoft Cloud and AI services to unlock a sweet $12 billion in revenue. And let’s not forget about PwC, who’s investing $1 billion in a “3-year AI roadmap” to strengthen their AI customer offerings and train a staggering 65,000 employees.
But the big guns like McKinsey, Boston Consulting Group, and Deloitte, they’re not quantifying their investments, no sir. Instead, they’ve published their thoughts on how clients can benefit from Generative AI, with a little help from their consulting expertise, of course.
Now, it might take some time to see if these investments pay off, but consulting bigwigs I interviewed this month say they’re already seeing a strong demand from clients. And it’s not just pennies they’re shelling out, we’re talking millions in consulting fees to deploy Generative AI in their companies.
So why are companies throwing down all this cash? Well, it all comes down to the promise of lower costs and higher revenues. Clients expect Generative AI to not only earn back those consulting fees within three months of deployment, but to also bring in some serious savings and profits.
For example, one company slashed their call center costs by a mind-blowing $80 million in just a year. How? By shifting responses from human agents to Generative AI virtual assistants, of course. And it’s not just about cost savings, Generative AI is also boosting customer satisfaction and improving net promoter scores.
But it’s not just about saving money, Generative AI can also make it rain. A cruise ship company used this technology to recommend activities to customers during their voyage, raking in an extra $1 billion in revenue. And an Asian bank? They saw an additional $500 million worth of trading volume thanks to their Generative AI-powered virtual investment assistance. Cha-ching!
So what are companies looking for when they hire Generative AI consultants? Well, it depends on the company, but they all want a piece of the Generative AI pie. Some want to improve productivity, while others want to stay ahead of the competition and identify new revenue opportunities. And if they’re really serious, they’ll want help with things like building a long-term AI strategy, establishing governance policies, and training their leaders in Generative AI literacy.
But here’s the kicker, not all consultants are created equal. Potential clients are evaluating them based on the return on their Generative AI investment. They want consultants that can bring a diverse set of skills to the table, from Generative AI engineering to risk management and cybersecurity. And let’s not forget about the all-important business strategy and change management skills.
It seems the strategic consultants like McKinsey and BCG have an edge here. They may have started off as great strategic advisors, but they’ve also upped their tech game and built trust with clients. And you know what they say, trust is everything.
But to hedge their bets, some clients are splitting projects and using different consultants for each. It’s all about choosing the winning firm based on effectiveness, confidence, and how much skin they’re willing to put in the game.
So who’s leading the pack in this Generative AI consulting race? Well, EY thinks they’ve got what it takes. They’re all about transforming their clients’ businesses with Generative AI and scaling up deployment. KPMG is also a strong contender, with their history in AI and their early adoption of Generative AI.
But let’s not forget about the strategic consultants who are killing it in both the executive perspective and the delivery arena. McKinsey and BCG are definitely the ones to watch out for.
So, all in all, it seems like Generative AI is here to stay. Companies are seeing the potential and are willing to invest big bucks to make it work for them. And with the right consultants by their side, the possibilities are endless. Stay tuned, folks, this is just the beginning.