The consulting and market research industries are experiencing significant disruption and transformation due to the emergence of artificial intelligence, particularly generative AI. Here are some key developments:
Widespread AI adoption
The use of AI in consulting firms has more than doubled in recent years. According to a McKinsey study, the percentage of firms using AI in at least one business area increased from 20% in 2017 to 50% by the end of 2022. This rapid adoption reflects the growing importance of AI technologies in the industry.
Enhanced Capabilities and Efficiency
AI is revolutionizing core consulting activities:
- Data Analysis: AI can process massive datasets quickly and accurately, enabling consultants to extract valuable insights more efficiently. For example, it used to take consultants or market researchers a week to code and analyze three open-ended questions. Now, AI platforms like the BTI platform can complete this in seconds.
- Predictive Modeling: Advanced AI enables more accurate forecasting and scenario simulations, improving strategic recommendations
- Automation: Routine tasks like note-taking, report generation, and data visualization can now be automated, freeing consultants for higher-value work. AI agents powered by state-of-the-art models can achieve transcription and translation accuracy beyond what a typical consultant or market researcher can achieve.
Changing Client Expectations
Clients now expect faster turnaround times, more data-driven insights, and measurable ROI from consulting engagements. AI-powered solutions are helping firms meet these evolving demands by providing:
- Rapid, real-time analysis and recommendations
- More customized and actionable insights
- Continuous support and adaptability to changing conditions
Industry Disruption
The rise of AI is challenging traditional consulting models:
- Democratization of Expertise: AI-powered platforms are making high-level consulting services more accessible to smaller businesses and startups
- Gig Economy Impact: Freelance consultants are leveraging AI tools to compete with established firms, offering specialized skills and flexibility. Knowledge and expertise have become even more important, while the advantages of large consulting firms with extensive support resources have diminished significantly, allowing freelance consultants to level the playing field with AI.
- Potential Job Displacement: A McKinsey report suggests that up to 45% of activities performed by consultants could potentially be automated
Ethical and Security Concerns
The adoption of AI in consulting raises important questions:
- Data privacy and security when handling sensitive client information
- Potential biases in AI-generated recommendations make it essential for the platform to ground all insights in the interview transcripts, with detailed references.
- Ensuring transparency and explainability of AI-driven insights
Future Outlook
While AI is transforming the industry, human expertise remains crucial. The most successful consulting firms will likely be those that effectively combine AI capabilities with human insight, creativity, and industry experience. Consultants will need to upskill to work alongside AI tools and focus on areas where human judgment and interpersonal skills are irreplaceable
As the AI revolution continues to reshape consulting and market research, firms must adapt quickly to remain competitive and deliver value in this new landscape.
Boston Tech Insights: AI native platform for consulting and market research
BTI platform focuses on serving the consulting and market research industries by providing two types of solutions.
- Interviews: BTI platform offers high-quality transcription, translation, and AI-driven analysis. All insights generated on the platform come with detailed transcript and audio references.
- Open-ended survey responses: The BTI platform enables you to analyze thousands of open-ended survey responses or verbatim feedback in seconds, categorizing them into themes, each with detailed quotes and references. You can choose to let AI generate codes/themes or use your predefined ones, with AI assisting in attributing responses to the relevant themes.
Book a live demo with us through the BTI website.