Tech strategist Walter Pasquarelli on the age of AI for consulting firms
Walter Pasquarelli has advised top private and public sector leaders worldwide and worked with some of the biggest names in technology. In discussion with Deltek and Consultancy.uk, Pasquarelli discusses what artificial intelligence has in store for the professional services sector.
“The opportunities of artificial intelligence (AI) are endless,” Pasquarelli says, “From enhancing healthcare to detecting fraud to generating rich media content with the click of a button, every industry is seeing the impact of this transformative technology.”
Yet, with AI investment booming, Pasquarelli advises consulting firms to start small, “It’s important to understand your AI use cases and align them with your business strategy. Investing in emerging technology will not necessarily increase your revenue or make your business more competitive. It’s about understanding where AI can help push forward the mission you have as an organisation.”
If anyone can help the consulting industry get to grips with the technology, it’s Pasquarelli. An internationally recognised AI expert, Pasquarelli has helped shape policy and business perception of emerging technologies for over a decade, leading advisory and editorial programmes at The Economist.
As much as consultancies are excited by the technology, Pasquarelli notes they are just as apprehensive. Deltek’s latest report, ‘Digital Trends: Unlocking Growth for Project Based Firms’, found that over three-quarters of UK-based professional services firms plan to invest in the technology this year. However, 53% also considered AI adoption a “significant challenge”.
Across any consulting firm, AI can bring many benefits. Some will take longer to see a return on investment than others – and for firms concerned about the cost involved in implementing the technology, finding low-hanging fruit to realise results early is important.
Find out more in the webinar with Walter Pasquarelli Tinker, Test, Scale: AI Tools for Project Success.
Enhancing how knowledge is amassed and shared
According to Pasquarelli, AI can revolutionise how knowledge and data are gathered and utilised by professional services firms. "One of the first areas of impact that I've been excited about is the use of generative AI in knowledge management.”
“Forward-looking organisations are using generative AI tools to scan their database of documents and content that they have within their organisation, either to generate reports and insights or just simply ask questions, such as ‘Where can I apply for a holiday or where can I find this document?’”
For consultants, it could assist traditional project management methods, such as information gathering. In those cases, AI-driven research tools can significantly impact and massively boost the breadth and depth of a consultant’s knowledge and output. Essentially, he adds, we will see “augmentation rather than automation” of a role.
For example, Deltek has integrated generative AI into its suite of ERP solutions. Deltek Smart Summaries leverages the technology to make tedious data collection and synopsis effortless by delivering clear, concise executive briefings with the click of a button.
With these tools at hand, consultancies must remember that they are designed to help humans do their jobs more effectively. “They should consider upskilling their existing workforce, or recruiting, based on their AI needs.”
AI can help increase client satisfaction
If consultants are empowered to service clients more rapidly, with wide-ranging data sets and analysis behind them, the results of their work will invariably improve. But AI tools can also play a more direct role in enhancing customer satisfaction.
Pointing to tools like those from Kili, Pasquarelli suggests firms could “use product and service information to answer customer queries.” Expanding, he notes that, unlike ChatGPT – which uses mainly public information – Kili's use of private and public knowledge “helps ensure that responses are accurate and specific,” expediting customer service queries and helping to engage visitors in real-time.
“Companies using Kili have seen customer satisfaction rise to 78%, compared to 54% with a human operator,” he states. “Tools like this can not only answer client questions quickly but can deliver a personalised experience in the process.”
Again, though, if these generative AI tools are to positively affect client satisfaction, there needs to be a trustworthy infrastructure behind them. A personalised customer service experience will hinge on the quality of data collection and analysis, among others. For clients to feel secure, firms will first need solid policies and data governance in place to keep their information secure.
‘Safe AI’ Considerations
In the implementation of AI, firms must consider how they collect, analyse and distribute data in relation to pre-existing data laws. According to Pasquarelli, firms should always do their best to “determine exactly how data is being used”, defining “for what purpose, who has access to the data, and the kinds of tools that can be implemented”.
Extensive regulatory changes are already on the horizon for Europe’s AI sector. According to Pasquarelli, the European Union’s (EU) ‘AI Act’ could drastically limit the sector’s potential, depending on how strict the final legislation will be. While the AI Act would not apply specifically to the UK, there is a possibility for “spill over” from its creation – as what Pasquarelli says is “one of the first” bills of its kind.
This could mean that even though the main regulation is being developed in a different jurisdiction, the AI Act may impact businesses in the UK due to the close trading ties the UK still has with EU nations. UK policymakers and companies in the UK who want to do business with the European AI market will also have to adapt to the AI Act as a result.
Choosing the right tools
Looking at the waves of change already sweeping the consulting sector, Pasquarelli is convinced that the world has so far only seen “just the tip of the iceberg”. Even so, he cautions that consultancies shouldn’t get ahead of themselves when looking to implement the technology.
As with the last decade of digital transformation, consultancies need to be sure that they are investing because it will improve an area of their business rather than out of fear of missing out. This is especially important if they advise clients on adopting AI with any authority.
“Professional services firms can’t afford to get carried away and try to run before they can walk,” he concludes. “They need to ensure that their investments yield the revenues, particularly when it comes to generative AI. The main ROI to look out for early on is efficiency and increased productivity. If firms notice a material reduction in the cost of producing something or see staff fulfilling tasks faster, those are the key metrics to monitor first.”
