The US management consulting industry is projected to reach $392.2 billion in sales this year, a 2% increase from last year
Consulting firms like IBM, Accenture, McKinsey and Boston Consulting Group (BCG) are reaping big bucks on the generative AI boom as companies unsure how to incorporate the evolving technology into their businesses turn to their consultants for advice.
These corporations are helping businesses figure out how AI can be useful. Some consultancies advised on regulatory compliance after the EU passed laws regulating AI. At the same time, others require customer support AI bots or help in research and development, reports the New York Times.
In 2023 alone,
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IBM, with 160,000 consultants, secured over $1 billion in AI-related sales.
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Accenture made $300 million in AI sales.
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BCG now earns 20% of its revenue from AI, up from zero two years ago.
However, generative AI isn’t perfect and can make mistakes, like providing incorrect information, leading to customer confusion. IBM faced issues with its McDonald’s AI-powered voice system for drive-thrus, which was eventually discontinued.
Despite the glitches, consulting firms are riding the AI wave
McKinsey expects 40% of its business this year will be generative AI-related. In the first half of the year, KPMG did business of over $650 million through artificial intelligence tech in the US.
The country’s management consulting industry is projected to reach $392.2 billion in sales this year, a 2% increase from last year, according to research firm IBISWorld.
Experts observe that the consulting industry’s interest in AI is similar to the 1990s dot-com era when every business wanted a website.