The trouble hasn’t trickled down to us middle grade Freelance consultants or small boutique consulting companies yet, mostly because we are not servicing Fortune 500 C-Suite clients, but apparently, the Artificial Intelligence phenomenon is being positioned to impact in particular the high-end management consultants and not for the better. Eventually, our comparatively modest stratum will be touched as well, depending on the services that your consultancy provides. I’ve got no love for the consulting giants Bain and McKinsey, but I’m worried by this trend.
AI is already at work, automating routine tasks such as maintaining calendars, but it is now poised to support decision-making functions in HR, marketing, finance (budgeting) and resource allocation. It seems safe to say that AI will in the near future be used as a strategic planning tool.
According to The Wall Street Journal, U.S. businesses spent $58.7 billion on management consulting services in 2016, a 7.1% increase over 2015, and the bulk of the business was generated by the financial services industry. The primary expertise of high-end management consultants is data analysis and presentation and facilitating long-range strategic planning. It is becoming obvious that AI can execute many functions as well as an elite consultant, and can perform more accurately, faster and at a fraction of the cost of a consultant’s billable rate.
Do you have an iPad or iPhone? Then you are part of the AI revolution yourself whenever you ask voice-activated Siri to give you directions or show you the lunch menu at a new restaurant. Alexa, the AI voice-activated digital personal assistant app for your tablet or smart phone developed by Amazon, will already allow you to control your smart home features such as lighting, heating/ air conditioning and keyless entry for your doors. Presently, Alexa has the capability to answer economic questions for clients of the Swiss global financial services giant UBS Group AG. The Wall Street Journal reported that Alexa will answer UBS client queries by using information provided by its chief investment office. Alexa is expected to soon begin analyzing markets and may also be used to buy and sell stocks.
Meanwhile Boston-based Blackrock, the financial planning and investment management outfit, which happens to be the world’s largest asset management firm, used by institutions and individuals, is rolling out computer-driven algorithms and models in a move toward management by smart machines, that is, employing passive management rather than active management of their funds. In other words, a machine will become the asset manager of Blackrock’s funds and not human, salary, bonus and benefits receiving employees.
Like the 1992 candidate for president Ross Perot predicted, that sucking sound you hear is your job going out the window. The middle class is about to shrink some more. Happy Labor Day.
Thanks for reading,
Photograph of Lost in Space, the CBS-TV series 1965 – 1968 Jonathan Harris (as Dr. Smith) and the robot