Consultancy’s multi-billion-dollar AI gamble, but where is the real return?
Consultancy firms have pumped a lot of money into frontier AI tools that have fundamentally changed tasks traditionally done by juniors. But the return on investment question lingers, writes Maria Ward-Brennan. Model ML’s platform for the consultancy market has automated manual steps such as supporting research, presentation and Excel model creation, and reviewing client-facing materials. [...]
Consultancy firms have invested heavily in frontier AI tools, altering tasks once performed by junior staff. However, questions remain about the return on investment. Model ML's platform automates manual steps like research, presentation creation, Excel modeling, and reviewing client materials. Traditionally done by juniors, they are now utilizing the platform, upending long-standing strategies.
A BDO case study showed over 10,000 questions asked, 25,000 documents analyzed, and 14,000 AI review comments generated in just eight weeks. Raghav Sehgal, Model ML's general manager, explained that consulting roles have shifted towards rigorous double-checking, insight creation, and managing AI output due to the reputational risk associated with client logos.
The biggest question in the industry is the real ROI of these expensive technology tools, with the Big Four giants committing millions to AI investment. Milan Malik, former McKinsey and Model ML head of consulting, stated that ROI depends on both the tool's performance and change management. Milaan Malik and former consultant turned AI specialist Raghav Sehgal highlighted that trust is earned over time in the consultancy industry.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
