Will AI wipe out 80% of the consulting industry?

Aloha,

Last week at the South Summit 2024 in Madrid, I conducted 32 interviews with tech C-levels, investors, and university professors.

All with a single goal in mind: understand how AI will impact the way we work.

I'm still trying to wrap my head around what I've heard (more to come in upcoming weeks), but there was a particular question that got people thinking:

"As the cost of AI-driven intelligence decreases, how do you foresee it transforming the consulting industry?"

What was the consensus?

The consulting industry is up for a HUGE disruption.

Some people said that "50 or even 80% of the current industry will be gone..."

🧠 Top 5 things that stood out to me

1. The end of the huge consulting companies is coming, as AI will replace most of the tasks their staff was doing (excel, slides etc.).

How will the PWCs and Deloittes of the world adjust?

2. Juniors entering the market will have a very hard time getting a job. Most of the tasks they've been doing (crunching numbers in Excel and creating decks) are where AI is already pretty good and will only get better.

Is this the end of the hype to be the management consultant?

3. Prices of professional services will go down, and the SMB market will open up for consulting services. SMBs will need to get digital transformation right this time.

Will AI help small companies compete with corporates?

4. Shift to specialized expertise will increase. As AI takes over routine tasks, there will be a growing demand for consultants with deep, specialized knowledge in niche areas.

What niches will be the hottest ones to get into?

5. The rise of AI-enhanced consulting will finally enable "data-driven" decisions. Consultants will increasingly use AI tools to enhance their analysis and recommendations, leading to more data-driven and accurate solutions.

Is this the end of the "gut feeling" area when making decisions?

What do you think will be the biggest challenge for the consulting industry in the age of AI? Add your point of view to our discussion here.

PS. Huge thank you to all the amazing people that I had the pleasure of connecting with during the event and kudos to the organizers for making it all happen. 😍 I had a blast and will be back for sure next year!!! Vamos 🇪🇸🇪🇸🇪🇸

Have a great rest of your week,

Iwo