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Eric Siu responds to claims that AI is killing consulting. Machine learning can cut a typical $1M in-house project down to $10K, but consulting firms won't disappear, just face lower margins and price pressure.
Eric Siu responds to claims that AI is killing consulting. Machine learning can cut a typical $1M in-house project down to $10K, but consulting firms won't disappear, just face lower margins and price pressure.
Reuters was the one that came up with this first, and the quote is, AI is killing consulting, right? So for example, if a company performs a project in-house, it costs around $1 million. Now with machine learning, companies can do the same job themselves for just $10,000. Will consulting become a forgotten profession in the AI era like the coachmen in the past? I don't think that's going to be the case. I think they're still going to be consulting, and I think they're still going to be able to charge a premium, but probably less. Because if you're a CEO, it would be— you would be foolish not to say, hey, with AI, we want to get some of those efficiencies. So maybe they can price pressure them down a little bit, but I think these companies will be okay. If you want more insights like this on AI, marketing, and business, follow to learn more.
