AI-Led “Management Engineer” is the New Normal!
The fourth industrial (Industry 4.0) revolution is here, and it brings with it technologies like Data Monetization, Artificial Intelligence (AI), Machine Learning (ML), Automation, and Robotics. It is clear that technology is empowering organizations across the board, but will this advancement generate enough strategic insights to make management consulting obsolete? Much like every other industry, the $250 billion management consulting industry will be transformed through AI and grow even bigger.
The data-processing capability available in the simplest of computers today far exceeds that of a human brain. Computers can sort, store, and process large amounts of data at lightning speed. The consultants in the near future will greatly benefit from AI’s ability to complete repetitive tasks, eliminate human errors, and reduce blind-spots.
Traditionally, management consultants have made strategic decisions based on experience and intuition. AI and ML algorithms can project outcomes by running various scenarios through decision trees and actively learn to create better estimates as new data are acquired. As a result, AI can augment human decision making to make it more accurate and precise.
The line between tech and consulting is getting blurrier as the two get increasingly intertwined. In addition to augmenting traditional consulting, Industry 4.0 revolution will also usher in the era of AI-led, cloud-based strategy platforms. These business-product-as-service (BPaas) solutions will empower companies to manage their own strategy.
As more and more Do it yourself (DIY) strategy tools are built, advanced engineering will likely merge with management consulting to give rise to the age of AI-led management engineers. These management engineers will need to be skilled at strategy consulting while being moderately well-versed in new technologies/tools. Even industry giants are taking note and preparing for these upcoming changes, as evidenced by McKinsey and Bain, investing in Quantum Black and Pyxis respectively.
As the world moves toward a data-centric economy where data is the new oil and disruption and innovation are norms, organizations need to increasingly embrace disruption, especially post-pandemic, and skill-up to meet the challenge. This change in mindset will be essential to the profitability of businesses as the new era of Industry 4.0 unravels.
As AI takes away the mundane tasks, it will free up time for the consultants to be thought leaders on strategic planning, subject matter expertise, and industry futures. As a result, their effectiveness will increase while the costs to companies decrease.
