Tech firms will increasingly compete with management consulting firms, which charge fat fees for helping clients navigate technological disruption

In reality, the generalists know they are vulnerable. Depending on the use case, many clients seek advice from tech firms, which are themselves pioneering users of AI. If consulting firms do not react efficiently, more specialized providers are likely to move up the value chain to not only be a data/analysis provider, but also provide the recommendations for overall business strategy.

Competition from Startups

Startups are also representing a threat to consulting firms. Indeed, many offer services like helping clean up and label data, and take on specific tasks that large tech firms are not yet offering. In some cases, data scientists can perfectly bring an answer to a precise business issue without the need of a management consultant

For large companies, it makes sense to outsource most of their AI work. These startups often have developed strong expertise that consulting firms don’t have yet, in a specific business area using Machine Learning. These startups often develop personalized solutions that integrate with the client’s business and can be used continuously — also after the consultants leave.

Competition from independent AI firms

Another worth mentioning new competition comes from independent AI consulting firms. Indeed, a growing number of companies have developed services to help companies integrate, develop or scale AI projects. These companies often have the advantage of their size (agile, price, etc.).