Generative AI Power for Consulting Growth

Generative AI, like ChatGPT, 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.

However, independent consultants and professionals, as well as small to mid-sized consulting 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 the power and productivity to compete with larger consulting firms and to deliver greater solutions.

For example, what if, in 15 minutes, you could,

• Gave Gen AI a few keywords and upload PDFs you wrote and then have it draft a 2,000-word, highly SEO-optimized blog?

• Take that same blog and slice it into multiple social media posts that another AI application posts according to a schedule you set?

• Use Generative AI to draft a landing page and email sequence that attracts new clients?

• Feed your client notes to Gen AI and have it draft a proposal based on winning proposals from similar projects?

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

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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 client deliverables.

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

• Ethics must be considered with the use of Gen AI to avoid biases, prevent plagiarism, and prevent the spread of misinformation.

Introduction to AI in the Consulting Business

Artificial Intelligence has become a major influence in the business world. Some forecasters claim it will be a major part of the Fourth Industrial Revolution, as significant as the invention of the steam engine.

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 power and capability of AI systems are increasing at an exponential growth rate. Its performance has passed the inflection point.

The Rising Tide of AI for Information and Knowledge Businesses

AI is transforming the economic landscape, with an estimated contribution of $15.7 trillion to the global economy by 2030. Industries like banking, high-tech, and life sciences are reaping the benefits of AI integration, leveraging enhanced data analysis, improved operational efficiency, and innovative product development.

This shift isn’t limited to large enterprises. The application of generative AI is increasing the productivity and quality of all consultants. McKinsey & Co. forecasts massive increases in productivity and GDP from Generative AI’s use across industries and professional services.

Generative AI's use in Consulting and Professional Services

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 that generative AI has significantly improved consulting productivity, time to completion, and quality of deliverables.

Massive Investments in AI by Consulting and Professional Service Firms

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.

McKinsey & Co. is not only partnering with AI development firms; they are also building AI systems for their internal use.

The strategic significance and massive economic changes resulting from these investments underscore how important it is for independent consultants and firms to stay ahead and employ Generative AI applications.

Leveraging Content Production and Quality

Gen AI can be a force equalizer for an independent consultant or small consulting business. Gen AI gives small consultants and firms the ability to compete with increased sales outreach, marketing campaigns, advanced analytics, and personalized client solutions, things previously only available to larger firms.

Generative AI and AI applications have significantly increased consultants’ marketing content productivity. This increase in marketing holds special importance for independent or small consulting businesses. For example, an independent business strategy consultant can draft more and better quality blogs with search engine optimization in far less time.

That increased visibility gives them more authority, and they can then use that extra time to respond to emails with personalized AI-enabled email responses.

Whether you are a boutique consulting firm in an international niche, or an independent consultant focusing on small businesses and startups, you can immediately benefit from using Gen AI to increase productivity.

Gen AI acts as a virtual assistant to help you with:

• Researching and compiling results

• Converting notes from interviews into structured drafts for use in consulting frameworks

• Drafting email marketing campaigns and sales proposals

• Taking notes and setting tasks and responsibilities in online meetings

• Brainstorming new solutions, brand names, and more

• Analyzing data and revealing insights faster than Microsoft Excel or Google Sheets

• Translating reports into different languages

Ethics and Governance in Generative AI

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

• Setting boundaries in your prompt engineering 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 HR to address biases and ensure fairness in the deployment of generative AI systems within organizations

Organizations can reduce unethical and illegal risks by:

• Always using a human expert to review results from Generative AI

• Training all users in writing well-structured, bounded 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 detailed 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 give 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 and 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.

The Future of Generative AI in Consulting

AI is evolving rapidly. And its role in business and international economies is growing just as rapidly.

Generative AI is already having a global impact. The professionals and firms that start now will have a competitive advantage and will be able to,

• Revolutionize consulting approaches

• Improve operational efficiencies

• Accelerate innovation

• Gain competitive advantage

Good consultants who want to stay in business must invest in learning and integrating Generative AI into their practices. But the transition to Generative AI takes more than just learning a new software or new queries. It takes training and workflow analysis at the functional and organizational level.

A large study by Harvard Business Review and BCG on using Gen AI by consultants showed a powerful case for training and coordinating use.

Your Consulting Future with Generative AI

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!

Summary

AI's impact on consulting is increasingly profound and far-reaching. Generative AI is more than a tool. It is leading a knowledge revolution that will transform businesses and economies.

Adopting AI is critical to the success of consultants who want to accelerate their business growth with greater income, impact, and independence.

Frequently Asked Questions

What is Generative AI and how is it impacting the consulting industry?
Generative AI is artificial intelligence that generates 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, preventing plagiarism, and maintaining transparency in AI-generated insights. These issues can be addressed by training consultants to write AI prompts correctly 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.