Commentary: Who needs consultants in the age of AI?

In the era of artificial intelligence, the role of strategic consultants is facing a significant challenge, according to Robert Armstrong's commentary for the Financial Times. These consultants, employed by firms like McKinsey, Bain & Company, and Boston Consulting Group, assist senior executives in addressing high-level business problems.

While some argue that their services are merely providing an objective stamp of approval or facilitating the sharing of best practices, the industry's core value lies in their ability to help organizations implement recommended changes effectively. However, the advent of AI threatens this aspect of their work, as the technology excels in tasks such as conducting industry research, identifying patterns, and recommending action options.

The critical difference between AI and human consultants lies not in their intelligence, but in their ability to orchestrate change within an organization. This process, which includes gaining the trust of key decision-makers and extracting compliance from resistant individuals, remains uniquely human. As AI becomes more proficient in handling analytic and technical aspects of strategy development, the value of a strategic consultant shifts from selling intelligence to selling a process.

This transformation necessitates a reevaluation of the industry's fee structure, with more firms moving towards outcome-based pricing models. Ultimately, the future of strategic consulting will depend on the ability of consultants to adapt their skills and services to the changing landscape of organizational transformation.