Will AI Replace Consultants – Reality of Management Consulting in 2024 | MBB | McKinsey BCG Bain

Will AI Replace Consultants – Reality of Management Consulting in 2024 | MBB | McKinsey BCG Bain

hello everybody are McKinsey BCG Bain at the risk 
of losing their greatness in 2021 2022 just like  
all the other big tech companies McKinsey BCG Bain 
have also seen increase in revenues but 2023 just  
like all the big tech companies they also faced 
a reality check and unfortunately unlike the big  
tech companies which could go ahead and Bank on 
the AI Boom the Consulting companies do not have  
that kind of Leverage and in fact if the AI boom 
continues to grow then Consulting companies are  
potentially at a risk before we dig deep into 
understanding what are the factors that could  
potentially lead to this kind of a decline let’s 
first understand where do these companies stand  
what do they do if you look at the Consulting 
companies their overall objective is to support  
their clients other companies and what are the 
various ways in which they can consult and support  
let’s look at one extreme end of the spectrum 
that is specialized Niche consulting firms these  
are working only in one area for example they 
might be doing operations support or supply chain  
Consulting in the mining industry or any such 
kind of Niche area or we can call them as Rocket  
scientists of that area and truly so it is hard to 
replace these guys because they have expertise in  
that domain and they are building that expertise 
and reputation over a very long time frame now  
that’s category one on the other end of the 
spectrum we can see implementation Partners  
or Consultants who come in and help their clients 
Implement stuff that’s already being decided this  
bucket can consist of let’s say for IT services 
TCS vpro infosis a lot of these guys also  
have their Consulting arms and majority of the 
Consulting work goes into this implementation work  
and in the middle spectrum is where McKenzie BCG 
Bane and other strategy Consulting companies like  
their objective is to help the CEO CFO or the C- 
level Executives the leadership of the teams make  
the right decisions and how do they do that they 
go through the entire organization get the data  
what is required do that analysis help the company 
make that quick decisions this is one big part of  
the job I’m not saying this is the only part 
of the job but this is a huge part of course  
a lot of companies do not know what is the right 
question to ask so they help in structuring the  
problem going and doing the data analysis and then 
shaping the strategy of the company for the next  
5 years 10 years or the immediate next 3 months 
however this revolution of AI can help the clients  
do this entire data analysis way way quickly and 
that is the reason why this disruption for the  
entire Consulting industry could be different from 
the disruptions in 2008 the financial crisis and  
2020 the pandemic and even 20 ,000 the.com bubble 
so all these bubbles they could get over it in  
fact much more strongly but this is remarkably 
different so we have to wait and watch how the  
AI Evolution will play out now that we understand 
what Consulting companies like McKenzie BCG Bane  
do at a very high level determining or supporting 
and shaping the strategy of the firms the next  
part is what are some of the factors that are 
pushing these companies into potential decline  
one of the reasons is globalization yes let me 
repeat it globalization Consulting companies  
like McKenzie BCG Bane or even if I get ahead and 
involve the big Force even PWC deoe all these guys  
also have strong Consulting arms deoe for example 
has their presence in 150 countries McKenzie also  
has a huge presence across the globe when I worked 
at McKenzie I was in the US office but when there  
was a need in Indonesian office for a specific 
type of project I was pulled into that project  
so the global networks were a strength that they 
could pull in people from different parts of the  
world and execute a project to the best of their 
abilities at a very short span but now this Global  
Network for every single company is acting against 
them how and why if you think about China McKenzie  
apparently has helped China in designing their 
Vision 2025 make in China 2025 and hence a lot  
of us lawmakers are against for McKenzie to go 
ahead and work on government projects previously  
they used to confidently boost about hey we have 
worked in China we have worked in Europe and we  
collectively can bring a lot more of experience 
but now that’s not the case anymore in fact Bane  
employees in the Shanghai office were questioned 
by Chinese administration now these kind of things  
were not common a few years back and it’s not just 
about China it is also about McKinsey BCG Bain  
and all these Consulting companies involvement in 
Saudi Arabia so is globalization really important  
or is it really really detrimental for Consulting 
companies is a big question mark now the second  
thing is with respect to the prioritization of how 
the corporate world is moving through a certain  
factors for example sustainability was on top of 
the agenda for a lot of companies in 2020 2021  
2022 but come 2023 and 2024 when the macroeconomic 
factors themselves were changing they said  
sustainability is not important for me anymore 
it is 10th in the priority list which means it is  
not important at all so what these guys did all 
the Consulting companies in 2021 2022 were they  
acquired a lot of these sustainability related 
companies so that they built that expertise and  
support clients now what happens to the future of 
sustainability again a big big question mark the  
third factor is of course the a factor but how 
is that playing out previously if two companies  
are merging right they had to have a consultant 
from these big Consulting organizations doing  
a lot of analysis which is typically called as 
due diligence you can go ahead Google the word  
due diligence and you will understand what it 
means from a consulting or an M&A mergers and  
Acquisitions context now a lot of these mergers 
and Acquisitions based analysis are automated  
through web scraping tools through chatbots 
and hence the Consulting companies have also  
started adopting collaborations with different 
AI companies out there now the best of the best  
have already come together Bane is collaborating 
with open AI BCG is collaborating with anthropic  
Accenture is collaborating with Microsoft and of 
course McKenzie has a few Acquisitions under its  
radar now all these are fine but there is a big 
question mark again once the clients the company  
are comfortable with this AI Revolution and they 
themselves can use these artificial intelligence  
chat boards now what is the purpose of going 
to McKenzie BCG or Bane and then using these  
AI tools can’t they directly go to Silicon Valley 
and start subscribing to these tools instead of a  
five member Consulting team they can have just 
one person who is working with the chatbot to  
do all the analysis and just helping frame the 
question itself that’s a very very very realistic  
probability and which is not a good sign for the 
Consulting companies and that’s one of the reasons  
why Consulting companies are also getting into 
layoffs now we do not know if this disruption  
is a genuine threat or arguably for the greatness 
of these Consulting companies now this could be  
one of the fundamental disruptions and could 
lead to the risk of losing that greatness or  
arguably the greatness of these consulting firms 
but are the Consulting companies just sitting idle  
and not doing anything of course not not only just 
collaborating with different AI Partners they are  
moving forward in a way where they are not just 
providing the solutions through their Consultants  
going and sitting at the client side they are 
taking a product Le Consulting approach they  
are building products themselves and saying that 
hey you deploy this product and I will go ahead  
and support you through this product so instead 
of five Consultants we ourselves recommend only  
one consultant and a product for which you pay 
a subscription fee this is a very interesting  
time ahead for the Consulting industry and I will 
let you know how this industry is moving forward  
through my own conversations with my friends from 
McKenzie my classmates at incad who then went into  
Consulting companies if you want me to do these 
kind of deep dives into different Industries  
which can help you understand how to read an 
industry how you can shape your career if you  
are in that industry and if you are interested in 
that industry do let me know in the comments and  
do do let me know in the comments what are those 
three takeaways for you which you believe can  
lead to the downfall of Consulting industry 
see you again guys in the next one bye-bye

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Will AI replace consultants? In the wake of Consulting Layoffs 2024 we do know that the question of Will Consultants be replaced by AI or not is important. MBB Consulting or MBB Consultants do face the risk of AI Replacing Consultants. Management consulting as an industry has evolved and top consulting firms like McKinsey, BCG, and Bain are evolving at the same time. The reality of Management consulting in 2024 is that AI replacing consultants of consultants will be replaced by AI is a major concern now.

Consulting layoffs and the changing nature of MBB Consulting life has made everyone realize that AI Will replace consultants or if consultants will be replaced by AI depends on domains in which AI is implemented in the top consulting firms like McKinsey, BCG, Bain. BIG 4 Consulting Firms and MBB Consulting Firms are going to face a difficult change in the industry as Generative AI or other forms of Artificial Intelligence will be implemented to define the new reality of Management Consulting.

Is consulting dying or is consulting dead? Questions such as these have been raised since the John Oliver McKinsey video. Management Consulting Job will involve the use of AI in Consulting tasks that McKinsey consultants or BCG consultants perform in their daily activities. Consulting Job and Consulting Interview questions may also change in the future owing to this. Will consultants be replaced by AI or not depends on understanding what do consultants do every day in their job and how much of that work can be streamlined and done more efficiently with the use of AI. Consulting is toxic because of the extreme workload that Management Consultants have to deal with.

The reality of Management consulting will change soon and the Consulting Layoffs are a testament to this fact. McKinsey Consultants, BCG Consultants, and Bain Consultants are going to use Artificial Intelligence in their day-to-day Consulting Jobs every day. Top Consulting Firms like McKinsey, BCG, and Bain will adapt to the challenge of AI replacing Consultants. It is up to those looking out for Consulting Jobs or preparing for Consulting Interview Questions. Hope you find this video valuable, see you in the next one.

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Chapters

0:00 – Intro
0:40 – What do Consulting Firms do?
3:11 – Why is Consulting Dying?
5:58 – Impact of AI on Management Consulting
8:59 – Outro