How AI Is Both Empowering and Threatening Professional Service Firms

The article discusses the transformative impact of generative AI on professional service firms, particularly management consulting. While AI greatly enhances efficiency by automating tasks such as research, software development, and internal processes, it also threatens traditional business models by enabling clients to perform these tasks independently or expect lower fees. David Pereira, head of generative AI at NTT Data Europe and Latin America, outlines the consultancy’s four-pronged adaptation strategy: widespread employee AI literacy, AI-driven value development and client offerings, development of proprietary tech platforms to avoid vendor lock-in, and internal process automation. The article highlights the tension between automation and the need to preserve the value of human consultants and addresses industry concerns over pricing models, autonomy risks, and the future distinction between software and consulting services.

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