Title: Consulting Firms Cash In on Generative A.I. Boom
In 2022, after the release of ChatGPT, Reckitt Benckiser’s marketing team saw the potential of artificial intelligence technology for their business. Unsure of how to proceed, they turned to Boston Consulting Group for assistance. This request was just one of many that the consulting firm received last year, as companies across industries sought guidance on leveraging AI technology.
Vladimir Lukic, Boston Consulting Group’s managing director for technology, noted a growing interest among businesses in understanding the implications of AI for their operations. This trend has led to a significant increase in revenue for consulting firms like Boston Consulting Group, with a fifth of their earnings now coming from AI-related work.
The surge in demand for AI consulting services has been likened to the dot-com boom of the 1990s. Companies are eager to explore the possibilities of generative AI and are turning to consultants for guidance on how to integrate this technology into their business strategies.
Major consulting firms like IBM, Accenture, McKinsey & Company, and KPMG International have all seen substantial growth in AI-related sales. IBM, for example, has secured over $1 billion in sales commitments for AI consulting work, while Accenture booked $300 million in sales last year.
However, the road to success with generative AI has not been without its challenges. Businesses have encountered issues with accuracy, speed, and reliability when implementing AI systems. For example, IBM faced setbacks with a voice-activated AI system developed for McDonald’s drive-through orders, leading to the project’s termination.
Despite these challenges, consulting firms are forging ahead with AI projects, such as IBM’s collaboration with Dun & Bradstreet on a supplier selection tool and McKinsey’s development of a customer service chatbot for ING Bank. These initiatives demonstrate the potential of AI technology to streamline processes and enhance customer experiences.
As the consulting industry continues to embrace generative AI, businesses are navigating the complexities of this rapidly evolving technology. With the guidance of consulting firms like Boston Consulting Group, companies like Reckitt Benckiser are exploring innovative ways to leverage AI for marketing and advertising, signaling a new era of AI-driven business solutions.
