The Death Of The Consulting Industry?
Truth Or AI Hype?
Hey Seekers!
Welcome to Today’s Edition of the Seeking Sageship Newsletter!
Your Daily Guidance to Go Beyond Leadership!
All Subscribers have Access to the Free Section…
1%+ Compounded Improvement in 1% of Your Time Maximum!
Plus, a Preview of the “Psychophysiological Freedom” Paid Section Is Available!
Let’s Dive In…
The Death Of The Consulting Industry?
Truth Or AI Hype?
The Consulting Industry has been struggling...
Companies like McKinsey, BCG, Bain, and more have not been hiring new individuals for years...
Why?
They cannot justify it.
Technology has been getting so good...
That these large consulting companies cannot bring armies of humans to do the same work, at higher costs, over a much longer period of time.
It makes no sense.
But...
In case you have been living under a rock...
There has been a new technology that has been blowing up...
Taking over...
Called Artificial Intelligence.
It has been destroying industries...
At least...
Supposedly.
Which brings us to the question...
Is AI the death of the Consulting Industry?
Is that the truth?
Is it AI hype designed to try to make a failing technology sound better to investors?
Especially when those investors are beginning to become afraid of an AI Bubble?
Or...
Is there something else that is happening?
Well, let’s start with AI.
What is AI exceptional at?
Compiling vast amounts of information...
Seeing patterns...
Finding the greatest common factors in those patterns...
Pulling it all out in easy-to-digest information...
And it can even put it all into a pretty PowerPoint if you want it.
Well...
What is it that most large consulting firms do?
They look through information...
Find patterns...
Pull it all out...
Purposefully putting it into high-and-mighty sounding jargon...
With terms designed to confuse others and make them feel small...
All to justify the high prices for vast teams of consultants...
And put it into a pretty PowerPoint to make clients feel like they are getting something of great value.
Can you see the issue here?
AI is doing what these consulting firms are doing...
Faster...
But it is also making that information more easily accessible and understandable.
Instead of hiring multiple high-cost consultants to look for patterns that exist...
And paying them over a period of 8 to 12 weeks...
To create a PowerPoint that makes you feel dumb...
On purpose...
You can use AI to do it all in a day...
And it makes you feel better because AI, by design, is Sycophantic.
The result...
Is that AI is getting to a point where these large Consulting Firms are no longer needed.
So it seems like it is the Truth...
AI is bringing the death of the Consulting Industry...
Or maybe not.
Here is the thing...
If you look at the business model of these organizations...
AI is not really killing the “entire” Consulting Industry...
It is killing a specific part of the Consulting Industry...
A part of the Consulting Industry that was...
Quite frankly...
Completely overhyped.
How were these organizations maintaining their grasp?
They have been creating presentations...
That they sold...
Which were “purposefully” condeluded...
To make these consultants “sound” incredibly intelligent...
And their plans were “purposefully” difficult to implement...
So that clients would “struggle” to enact the plans...
Which would then “cause” those clients to fall into what is known as the “authority bias”...
Where we “believe” that these consultants are important...
Because their presentations made clients “believe” they were authorities.
But here is the thing...
These companies were not really offering anything nearly as valuable as they were charging.
What is it that they were offering...
Truly?
They looked at Industries...
Found the patterns that were working the best...
And presented a plan to fit into those patterns for their clients.
What is another way to say this?
They were copying the trends that had already landed...
And presenting it “as if” that would lead to success.
But the truth...
Is that this fails to understand Category Design Economics.
What do Category Design Economics reveal to us?
Whoever is the Category King/Queen in an industry...
On average...
Will own 76% of the Category.
Everyone else then “competes” for the remaining 24%...
Which, if you’re lucky in an industry, will be primarily split between 2 to 3 other companies...
Each with a smaller market share than the last.
Now, what these Consulting firms have gotten exceptional at...
Is working for the large competitors behind the Category King/Queen...
And selling them the strategies of the current Category King/Queen Company...
And using the long-term growth of these companies to justify their pricing.
But...
The consulting firms have not actually been “helping” these companies grow...
And certainly have not helped them become the Category King/Queens of their Industries.
These companies have grown because their “industry” as a whole has grown over time...
And these Consulting firms have been taking “credit” for it.
But this is the exact problem...
They are not really providing “true” value.
All they are providing is the current “playbook” of the Category King/Queen...
Which is just another way of saying that they are providing the rules of the current game...
And who do you think those rules primarily benefit?
The current Category King/Queen.
But that is not all that valuable...
It does not change the game...
It does not allow other companies to upset the current Category King/Queen...
All it does is maintain the current status quo...
And they have been charging ludicrous amounts of money to do this.
However...
If you are a Consultant...
That actually understands things that are novel...
Can help with true innovation...
And help organizations see opportunities that everyone else is missing...
Which can create “new” Category Kings and Queens?
You have nothing to worry about as a Consultant.
Consultants that “actually” change the game...
Can continue to dominate.
These types of Consultants will not be replaced by AI.
Why?
AI is great at finding patterns that already exist...
But only humans are good at discovering paths that do not exist yet.
This is where the AI Hype exists.
AI cannot and will not kill the “entire” Consulting Industry.
It is only revealing which consultants are actually valuable.
The consultants and consulting firms that are currently struggling...
Are the ones who have been living in the past.
It was really only a matter of time before the truth of their tactics was discovered and understood.
Those Who Seek Sageship Also Cultivate Others!
Share this Article Today With Someone Who Needs It and Earn Exclusive Rewards!
Are You Ready To Become A Sage?
Paid Subscribers will Gain ‘Exclusive’ Access to…
Read the Entire “Psychophysiology Freedom” Deep Dive Section for Exponential Results
Access to the “Full” Paid Archive (Check Out the Cultivation Center for More)
Connect Further in the “Subscriber Only” Chat & Comments Section
“Directly” Impact Regenerative Projects around the Globe
With “More” Coming In The Future…
It’s Time to Change The World!
Psychophysiological Freedom
For Paid Subscribers
So, how do we avoid the outcome that many Consulting Firms are facing?
AI does not appear to be going anywhere…
So it is valuable to understand where “we” differentiate ourselves.
That is what we will look at next.
There are 5 Things that will help individuals and organizations stand out…
Let’s Dive In…
Keep reading with a 7-day free trial
Subscribe to Seeking Sageship: Beyond Leadership to keep reading this post and get 7 days of free access to the full post archives.