How consulting firms can reshape their offering with strategic AI implementation
Strategic AI implementation is reshaping professional services firms. Bret Tushaus, vice president for product at Deltek, explains how it can help consultants get the most from the new technology.
When Harvard Business School researchers studied over 700 consultants using AI tools, they found task completion rates improved by a quarter. More striking still, junior consultants saw productivity gains of 43%, while seasoned professionals experienced a 17% boost in complex, knowledge-intensive tasks. These figures underscore a fundamental truth: AI's impact on consulting is more than mere efficiency. Instead, it continues to transform how value is delivered to clients.
With the technology levelling performance differences across experience levels and enhances the quality of work, consulting firms now face a difficult question: how can they build an effective strategy for AI adoption that goes beyond productivity gains? This is particularly relevant as AI increasingly acts as an equalizer, enabling firms of all sizes to compete more effectively in the market.
This question becomes particularly pertinent as consulting firms navigate an evolving landscape. According to Deltek's Clarity Report, whilst 74% believe successful AI implementation can deliver substantial competitive advantage, almost two thirds (64%) express uncertainty about the impact of future regulations. This tension between opportunity and hesitation defines the current state of AI adoption in professional services.
Building a foundation for success
The journey towards effective AI adoption begins with a focus on internal capabilities. A leading UK consulting firm demonstrates this approach through their recent implementation strategy. By nominating an executive 'AI business sponsor' to lead a cross-functional workgroup, the firm has ensured all research and development aligns with specific business use cases. Their practical success is evident in the development of their 'Service Order AI Assistant' prototype, which has significantly reduced client proposal creation time.
However, firms shouldn’t rest on their laurels. Success demands more than just implementing new tools to streamline processes. A robust infrastructure that supports data-driven insights while safeguarding sensitive corporate information is crucial.
In the recent report sponsored by Deltek, C-Suite’s Playbook for Generative AI, one of the firms interviewed, a supply chain optimisation consultancy, explained how they learned an invaluable lessen when starting to expand into AI-driven predictive analytics. Their initial infrastructure review revealed critical gaps in cloud storage capabilities and data encryption protocols. By addressing these fundamentals first and partnering with HR to initiate comprehensive training programmes, they ensured their teams could effectively leverage AI tools in client projects.
Creating an AI-ready culture
The shift towards AI adoption often demands a fundamental rethinking of how consulting services are valued and delivered. This includes:
1. Rethinking time-and-expense billing
Traditional time-and-expense billing models may become obsolete if they cannot reflect the value generated when AI reduces task completion time. As the playbook highlights, forward-thinking firms are measuring the value to their clients by regularly measuring their work against clear performance metrics.
2. Governance cannot be overlooked
A public sector advisory firm implementing AI for community engagement data analysis found success by forming a dedicated governance task force. This team, spanning legal, compliance, and IT leaders, developed strict data privacy and ethical guidelines. Their quarterly AI audits, shared transparently with government clients, helped build trust while ensuring regulatory compliance.
3. Quality data management as a critical success factor
Without robust data practices, even the most sophisticated AI tools become ineffective. To illustrate this, the same public sector firm mentioned above leverages their quarterly audits to ensure data quality at source and maintain strict protocols for data handling. Their comprehensive approach has strengthened client trust through transparent reporting while ensuring their AI systems are built on reliable data foundations.
4. Cultural transformation is equally vital
The playbook's assessment framework emphasises the importance of experimentation within clear governance structures. A leading UK consultancy once again exemplifies this through their hackathon programme, where teams test AI applications in controlled environments before client deployment. This approach helps demystify AI, and to align it with a company’s strategic objectives.
Measuring success and maintaining momentum
Looking ahead, consulting firms are discovering that AI adoption requires continuous evaluation and refinement. The focus should be on building adaptable frameworks, which can change with technological advances and changing client needs. This includes fostering a culture of experimentation and AI literacy across the organisation. By enabling cross-functional teams to collaborate with AI systems, and investing in constant educational efforts, firms can reduce resistance to adoption while maintaining high standards of client service and data security.
This period of technological advancement offers consulting firms new opportunities to enhance their service delivery. Strategic AI implementation, coupled with unwavering attention to client value, will help translate technological potential into tangible client benefits.
