How Generative AI is Changing the World of Consulting

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Generative AI, like ChatGPT from OpenAI, is rapidly transforming consulting, offering significant benefits, especially for independent consultants and professionals. Implementing generative AI technologies can level the playing field, allowing small consulting firms and independent professionals to compete effectively with industry giants. McKinsey & Co., BCG, and other large consulting firms are investing billions of dollars in Generative AI systems for their internal consultants. This increased focus on mitigating technology's distractions is crucial as it addresses the challenges of maintaining work-life balance in an era where technology often blurs the lines between work and home life.

However, independent consultants, professionals, and small—to mid-sized firms do not have to be overpowered. Knowing what tasks are appropriate for generative AI and how to use these technologies gives an independent consultant or small consulting business the power and productivity to compete with larger consulting firms and deliver greater solutions. With over a decade of experience, professionals like Rob Watts have the expertise to break down complex topics for those in the consulting field, enhancing the ability of small businesses to leverage generative AI effectively.

This section shows you the rapid impact of Gen AIb on how consultants and other professionals can use AI and its impact on creativity, workflow, and productivity.

Learn about the profound changes and opportunities generative AI can give your consulting business. For example, what if, in 15 minutes, you could,

• Use Generative AI to draft a landing page and an email sequence to attract new clients?

• Feed your client notes to Gen AI and then it drafted a consulting framework, like a SWOT analysis, that helped structure your consulting engagement.

• Give Gen AI a few descriptors and boundaries and then have it draft a 2,000-word, highly SEO-optimized blog?

• Use Gen AI to slice that same blog into social media posts with animated sequences?

• Use that same blog again to draft a presentation slide deck with captions and images?

Once you know how to write robust, detailed prompts and use appropriate AI applications, you can do that and more.

Key Takeaways

• Generative AI is revolutionizing the consulting industry by automating routine tasks, increasing productivity, decreasing time to completion, expanding idea generation, and improving the quality of deliverables.

• Large consulting firms are investing billions of dollars in AI technologies. These investments are increasing the productivity of their consultants and improving client results.

• Generative AI provides actionable insights to sharpen decision-making and develop data-driven strategies, further enhancing the consulting industry's capabilities.

• Ethical considerations must be taken when using Gen AI to avoid biases, prevent plagiarism, ensure the quality of outcomes, and prevent misuse.

Generative AI’s ability to produce content, analyze data, and automate operations reshapes conventional business practices. Consulting is no exception. Research, analysis, digital marketing automation, marketing content, sales and CRM, sophisticated analytics, task automation, client writeups, and web design are all being accelerated and improved by AI. The inclusion of web design as a critical area of expertise underscores the importance of digital transformation consulting services in creating on-brand and functional websites for businesses.

The power and capability of AI systems are increasing at an exponential growth rate. In business and economic history, the early adopters of major transformations, like steam power, international highways, computers, and the internet, have ridden a fast wave to business success.

Generative AI is transforming the consulting industry. Large consulting firms are using AI to significantly increase the productivity of their consultants. Studies conducted by Baine Consulting Group and Harvard Business Review have shown a significant improvement in consulting productivity, time to completion, and quality of deliverables due to Generative AI.

Big consulting firms like McKinsey & Co. and BCG are making very large investments in AI for internal use by their consultants as well as developing AI systems for their clients.

There are ethical and legal concerns you must consider when using Generative AI. Some of the ethical considerations include:

• Setting boundaries to limit biases, racism, and deceptive content that may be embedded in the training data used for Generative AI

• Preventing the use of Generative AI to create misinformation, conspiracy theory stories, and conspiracy research “data”

• Limiting the illegal or unethical effects on the business and clients

• Consulting with an HR consultant to address biases and ensure fairness in the deployment of generative AI systems within organizations

Organizations can reduce unethical and illegal risks by:

• Always having a human expert review results from Generative AI

• Training all users in writing correct prompts

• Consciously choosing the training data for internally created Generative AI bots

• Avoiding reliance on Generative AI for critical decisions

Generative AI produces results and misinformation that look valid and realistic. Research shows that depending upon the Generative AI system used and the scenario, 3% to 8% of data could be false, a “hallucination.” This makes it even more important that human experts review the results from an AI before they are used.

Addressing Bias, Fairness, and Company Culture

Generative AIs may provide false information when it does not find answers to a request. However, correct usage of Generative AI significantly reduces hallucination. You can reduce bias and "hallucinations" by,

• Writing clear, precise prompts that set boundaries on the task

• Specifying words, phrases, and topics that should not be referenced

• Giving the Generative AI example files and sample data and telling it to give these data priority

• Giving the Generative AI specific URLs that contain valid sample data and references

• Always giving the citation and URL for specific data for the expert reviewer to crosscheck

Research from BCG and Harvard Business Review has conclusively shown that users of Generative AI must be trained in prompt engineering basics, know which types of tasks are appropriate, and know which AI applications are appropriate for each task. Using Gen AI incorrectly can decrease productivity as well as produce bad results. It is critical for consultants and professionals using AI to have training.

It is critical for consultants and professionals
who use AI to have training in its proper use.

A properly structured and well-defined prompt is critical if Generative AI is to produce accurate, focused results with a good format. A carefully constructed prompt aids the AI in understanding the task’s context and diminishes the chances of biased or irrelevant information.

Gen AI is a Pot of Gold for Knowledge Workers

Artificial intelligence is a necessary skill for every consulting business in the next few years. Consultants who do not use AI will find it hard to compete against those who do use these intellectual power tools.

AI Won't Replace You,
But the Professional Using AI Will!

With no code development, Generative AI already gives independent consultants and professionals as well as boutique consulting firms the power of:

• Brainstorming beyond the creative limits and experience of the client's team

• Quickly researching profiles, buying drivers, and triggers of multiple client avatars

• Automating repetitive business processes and workflows

• Creating charts, graphs, and illustrations that would take a professional designer

• Creating ChatBots that answer internal support questions

• Creating presentation slides and scripts for speaking and webinars

• Drafting proposals from Discovery Session notes

• Rapidly researching niche markets and creating SWOT analysis

• Analyzing databases in minutes compared to the hours needed by an analyst

Gen AI will accelerate the growth of independent consultants, professionals, and small consulting firms.

Consultants and professionals must learn how to use Gen AI and correctly apply it to their workflows. This is the only way they will be competitive in the new world of work.

Critical takeaways from the HBR and BCG study found the following critical factors for solo professionals.

Summary

AI's impact on consulting is increasingly profound and far-reaching - it is the fourth industrial revolution, 4IR. This time the industry is knowledge work.

All knowledge workers and professional service firms must begin planning how they can increase productivity and creativity through the use of Gen AI.

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Frequently Asked Questions

What is Generative AI and how is it impacting the consulting industry?
Generative AI refers to artificial intelligence that can generate new content, insights, or data patterns. In consulting, it's revolutionizing the industry by automating tasks, enhancing productivity, and enabling smaller firms to compete with larger ones.

Can independent consultants benefit from Generative AI?
Absolutely. Independent consultants and small firms can leverage Generative AI to perform tasks such as data analysis, content creation, marketing campaigns, consulting frameworks, client presentations, and developing business strategies.

Are there ethical concerns with using Generative AI in consulting?
Yes, there are ethical considerations, such as ensuring the AI doesn't perpetuate biases, preventing the generation of misleading information, and maintaining transparency in AI-generated insights. These issues can be addressed by training consultants how to correctly write AI prompts and reviewing all Gen AI drafted material by a human expert.

How can I ensure the responsible use of Generative AI in my consulting practice?
To use Generative AI responsibly, consultants should be trained in prompt engineering, validate the AI's outputs, set clear task boundaries, and prioritize human oversight in decision-making processes.