The arranged marriage of AI and Consultants
Today, AI is the worst it will ever be.
This will also be true tomorrow.
And the day after.
“The global Artificial Intelligence (AI) Consulting market size was valued at USD 93472.06 million in 2022 and is expected to expand at a CAGR of 37.46% during the forecast period, reaching USD 630611.25 million by 2028.”
The market size is expected to show an annual growth rate (CAGR 2024–2030) of 15.83%, resulting in a market volume of US$738.80bn by 2030.
AI will not destroy jobs, but create new ones. It will ask for a complementarity between the human and the machine.
It might even demand those skills.
While traditional consulting has always been about expertise, AI is shaking things up. It’s offering new ways to solve problems, improve efficiency, and push boundaries.
But is AI a friend or foe for consultants? Or is it a strange marriage we all must face?
I want to delve into the complexities of this emerging partnership. I want to explore how consultants can harness the power of AI. I want to understand how consultants can safeguard their unique value.
After all, I have skin in the game down here in Oceania.
First and foremost, AI is a tool that supplements skills. It is not to be considered a replacement. Those who say that it is a replacement should relfect on a process named “teething issues.”
Prior to the 1950s, consultants relied solely on human expertise to offer solutions. However, introducing the term “Artificial Intelligence” in 1956 marked a turning point.
The 1950s and 1960s laid the foundation for early AI research. Pioneers such as Alan Turing and John McCarthy made significant contributions to the field. During this period, researchers developed the first AI programs. Although these programs had limited capabilities compared to contemporary standards.
It took a while to manifest, but AI slowly became important.
The 1990s and early 2000s marked a rapid growth in AI research and developments. These included machine learning and neural networks. These advancements enabled consultants to leverage data and make informed decisions. Machine learning algorithms played a crucial role in automating repetitive tasks. It also optimized processes and improved the overall efficiency of consulting services.
Lately, AI has taken the spotlight. It has dominated news cycles since ChatGPT made its way to the market. It has sparked heated ethical discussions and ignited concerns about impacts on the workforce. The surge in prominence also emphasizes the profound impact AI has. It raises critical questions about its responsible development and integration into society.
In this era of rapid innovation, organizations have remained constant in being competitive. New technologies are driving changes, offering significant gains. Areas like quality, efficiency, and resource management are seeing massive growth. AI is causing a phenomenal rate of activity and it encourages more companies to embrace it.
However, the novelty of AI also presents concerns. Some of these concerns surround the impact of task automation, alterations in human work structures, and social interactions. The need for responsible development is now a requirement.
The influence of Artificial Intelligence (AI) on the consultants has ignited a contentious discourse. While some envision AI as a disruptive force, a more nuanced consideration reveals a symbiotic synergy.
AI’s prowess lies in its ability to automate mundane tasks. By sifting through vast datasets, AI empowers consultants to transcend the limitations of human cognition by uncovering insights and formulating recommendations.
This augmented intelligence translates to enhanced efficiency and expedited problem-solving. It allows consultants to dedicate their time and expertise to the intangible, yet indispensable, aspects of the profession.
However, the narrative of impending redundancy for human consultants is demonstrably overblown. The essence of consulting hinges on intangible human qualities. Its why people go to other people to solve problems, there is a social aspect of it. These also include tailored critical thinking and fresh problem-solving. These are precisely the areas where AI currently exhibits limitations.
Therefore, it is not a question of “if” AI will replace consultants, but “what now”. The future lies in the orchestration of a new dynamic. In this sense, AI empowers consultants with powerful analytical tools.
Human consultants keep a distinct value proposition within the evolving consulting landscape. Their expertise transcends mere data processing and extends to:
- Deep Sectoral Knowledge and Experience: Consultants possess a vast understanding of nuances and complexities specific to their industry. This translates into insights that go beyond the capabilities of raw data analytics. It enables them to deliver tailored solutions.
- Critical Thinking and Creative Problem-Solving: Consultants are adept at tailored critical thinking and creative problem solving. Their ability to analyze complex situations, identify root causes, and develop innovative solutions makes their expertise sought after. This is currently being grappled by AI. Often, AI struggles with intangibles and multi-dimensional problems that require human intuition.
- Effective Communication and Relationship Building: Consultants possess strong communication and interpersonal skills. This allows them to build trust and rapport with clients. Consultants explain complex concepts, meet client’s expectations, and navigating human interaction. While AI is continuously evolving, it currently lacks customer service skills. This means there must be a mediator to facilitate that exchange. Hence, the need for the consultant remains.
- Ethical Considerations and Business Acumen: Consultants are familiar with navigating dilemmas. AI, when designed with specific goals and objectives, can struggle with this. It often makes headlines.
- Strategic Guidance and Long-Term Vision: Consultants excel at formulating strategic plans and providing a long-term vision. That’s why the good ones get paid so much! AI, while adept at data, currently lacks the ability to assess long-term strategies. The consultant needs to build recommendations of data, which AI currently excels at.
So there is a difference in execution and value between the consultant and AI. However, most consultants are seeking a partnership with AI to support many tasks.
This nascent partnership is not without its challenges. Concerns regarding bias embedded within AI algorithms cause issues with integration.
Fostering human-AI collaboration demands investments in upskilling and reskilling the human workforce. It means that consultants have to supplement their current skill set.
While the transformative potential of AI is undeniable, its complete takeover is implausible. AI excels in data analysis and pattern recognition, but it currently lacks the sophistication to replicate human consultants.
These limitations include:
AI currently struggles to grasp the nuances of human behavior, emotions, and social dynamics. These are often critical factors in complex business situations. Consultants, with their developed emotional intelligence and social skills, navigate these intricacies.
AI currently exhibits limitations in formulating creative and multifaceted strategic plans. It also lacks the ability to communicate effectively with diverse stakeholders. These aspects are essential for building trust and inspiring action.
The hypothetical scenario of AI replacing consultants entirely raises several ethical and practical concerns.
AI algorithms, trained on potentially biased data, can perpetuate and amplify existing societal biases. This can lead to discriminatory practices in the decision-making process. Sometimes, it has. Human consultants, with their ethical frameworks and awareness of societal issues, often act as guardians against these issues.
Replacing human consultants with AI would lead to a loss of invaluable human experience and accumulated knowledge. Consultants often possess deep sector-specific expertise and contextual understanding. This implies that consultants are the best to leverage analysed data.
The most likely outcome lies in a collaborative co-existence between AI and human consultants. This symbiotic partnership would capitalize on the strengths of both parties.
AI can automate routine data analysis and generation of reports. This allows the consultants to focus on strategic thinking and client relationship building.
AI should feed the consultant. Not the other way round. The consultant that feeds constructed and analysed information to their clients.
While AI undoubtedly is transforming the consulting landscape, the complete replacement of human consultant is not a foreseeable reality.
The enduring relevance of human consultants lies in their unique ability to navigate complexity, foster trust, and provide strategic guidance. Currently, these are areas where AI exhibits limitations.
Therefore, the future holds the promise of a synergistic partnership between AI and human consultants. Here, each party leverages its unique strengths to create value and navigate the business environment.
This is for the consultant to decide.
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References
Biz, Industry Research. “Artificial Intelligence (AI) Consulting Market 2023: Latest Insights on New Technologies and Trends 2030,” September 5, 2023. https://www.linkedin.com/pulse/artificial-intelligence-ai-consulting-market-2023.
Statista. “Artificial Intelligence — Global | Statista Market Forecast,” n.d. https://www.statista.com/outlook/tmo/artificial-intelligence/worldwide#:~:text=Artificial%20Intelligence%20%2D%20Worldwide&text=The%20market%20size%20in%20the,US%24738.80bn%20by%202030.
