Management consulting is facing significant challenges due to the rise of generative AI. As AI capabilities become more advanced, the traditional role of consultants—such as analysing documents and conducting research—is increasingly threatened. This article discusses how firms like NTT Data are adapting to these changes and what the future may hold for the consulting industry.
Key Points
- Consultants must adapt business models as generative AI automates many of their tasks.
- NTT Data reports that 40% of its revenues could be at risk due to AI advancements.
- The company is restructuring around four key areas: talent transformation, value development, productive models, and internal process optimisation.
- NTT Data has automated significant portions of its software development, boosting profit margins.
- Value-based pricing models are emerging, although many clients remain hesitant due to variable costs.
- The consulting industry must distinguish between service and software to survive the AI transformation.
Why should I read this?
If you’re curious about how AI is reshaping the business world, especially in consulting, this article is a must-read. It dives into the dilemmas and strategies firms like NTT Data are wrestling with, and gives you a glimpse of what the future of consulting might look like. Understanding these shifts could save you time and help you stay ahead in your own work.