AI Is Here to Help Blue Chip Consulting Firms: Consultants, Tighten Your Seat Belts
December 26, 2023
This essay is the work of a dumb dinobaby. No smart software required.
I read “Deloitte Is Looking at AI to Help Avoid Mass Layoffs in Future.” The write up explains that blue chip consulting firms (“the giants of the consulting world”) have been allowing many Type A’s to find their future elsewhere. (That’s consulting speak for “You are surplus,” “You are not suited for another team,” or “Hasta la vista.”) The message Deloitte is sending strikes me as, “We are leaders in using AI to improve the efficiency of our business. You (potential customers) can hire us to implement AI strategies and tactics to deliver the same turbo boost to your firm.) Deloitte is not the only “giant” moving to use AI to improve “efficiency.” The big folks and the mid-tier players are too. But let’s look at the Deloitte premise in what I see as a PR piece.
Hey, MSFT Copilot. Good enough. Your colleagues do have experience with blue-chip consulting firms which obviously assisted you.
The news story explains that Deloitte wants to use AI to help figure out who can be billed at startling hourly fees for people whose pegs don’t fit into the available round holes. But the real point of the story is that the “giants” are looking at smart software to boost productivity and margins. How? My answer is that management consulting firms are “experts” in management. Therefore, if smart software can make management better, faster, and cheaper, the “giants” have to use best practices.
And what’s a best practice in the context of the “giants” and the “avoid mass layoffs” angle? My answer is, “Money.”
The big dollar items for the “giants” are people and their associated costs, travel, and administrative tasks. Smart software can replace some people. That’s a no brainer. Dump some of the Type A’s who don’t sell big dollar work, winnow those who are not wedded to the “giant” firm, and move the administrivia to orchestrated processes with smart software watching and deciding 24×7.
Imagine the “giants” repackaging these “learnings” and then selling the information about how to and payoffs to less informed outfits. Once that is firmly in mind, the money for the senior partners who are not on on the “hasta la vista” list goes up. The “giants” are not altruistic. The firms are built fro0m the ground up to generate cash, leverage connections, and provide services to CEOs with imposter syndrome and other issues.
My reaction to the story is:
- Yep, marketing. Some will do the Harvard Business Review journey; others will pump out white papers; many will give talks to “preferred” contacts; and others will just imitate what’s working for the “giants”
- Deloitte is redefining what expertise it will require to get hired by a “giant” like the accounting/consulting outfit
- The senior partners involved in this push are planning what to do with their bonuses.
Are the other “giants” on the same path? Yep. Imagine. Smart software enabled “giants” making decisions for the organizations able to pay for advice, insight, and warm embrace of AI-enabled humanoids. What’s the probability of success? Close enough for horseshoes. and even bigger money for some blue chip professionals. Did Deloitte over hiring during the pandemic?
Of course not, the tactic was part of the firm’s plan to put AI to a real world test. Sound good. I cannot wait until the case studies become available.
Stephen E Arnold, December 26, 2023
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