For professional service firms, AI is a big help—but also a…

Summary

Management consulting is facing a significant challenge with the rise of generative AI, as these tools can perform tasks traditionally carried out by consultants—such as document analysis, research, and report writing. NTT Data, a global IT consulting firm, is proactively adapting to this shift, predicting that 40% of its revenue could be at risk due to AI capabilities.

David Pereira, NTT Data’s head of generative AI for Europe and Latin America, highlights four key strategies the firm is pursuing to remain competitive: focusing on talent and cultural transformation, value development with clients, creating a flexible tech platform for AI models, and optimizing internal processes with AI.

Despite the significant potential for automation, Pereira cautions against fully relying on AI for service delivery, emphasising the unique value that human consultants provide. The consulting industry as a whole needs to clarify the distinction between delivering services and software solutions to ensure its survival against AI advancements.

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Key Points

• Management consulting faces serious disruption from generative AI technologies.
• NTT Data estimates that 40% of its revenue could be impacted by AI advancements.
• The company is prioritising talent transformation, training staff in AI utilisation and adapting roles accordingly.
• NTT Data has automated 2 million hours of software development through generative AI, improving profit margins.
• The firm is exploring value-based pricing models tied to customer performance metrics.
• Pereira warns that fully automating client service could undermine the value of human consultants.

Why should I read this?

If you’re curious about how AI is shaking up industries, including consulting, then this article is a must-read! It dives into how firms like NTT Data are adapting to stay relevant against AI threats, providing insights that could be applicable across various sectors. Discover how the consulting landscape is evolving and what it means for the future of work. Trust me, it’s worth a read!