Consulting might not be dying in the age of AI
Consulting might not be dying in the age of AI
Joan Cros/Getty Images
It looks like AI chatbots that can answer questions by synthesizing humanity’s knowledge in seconds aren’t killing consultant billable hours. Consulting and outsourcing firm Accenture surprised Wall Street with a strong earnings report yesterday, propelling its stock up as much as 22%.
Advice still sells
Accenture’s strong earnings and rosy outlook for next year eased concerns that AI will replace professional recommendation-givers. The firm said its revenue rose 7% last quarter compared to the previous year.
AI might be creating more consulting work: Accenture also announced a record number of new contracts with large clients like Alphabet and Amazon.
The company said its major clients, like FedEx and BP, are embracing AI tools and turning to their human consultants for technical guidance. It also recently signed a $2 billion deal with Anthropic to help the AI lab ensure its products are safe for companies to use.
Still, Accenture’s stock is down by more than 20% since the start of the year, even after yesterday’s surge, as many analysts warn that AI will hurt its international IT outsourcing business—a major source of revenue.
And consultants’ jobs are changing: Fellow consulting powerhouses like McKinsey and EY say they’re increasingly charging clients based on delivery of measurable results rather than by the hour. McKinsey shared last year that it’s focusing on projects that involve tech implementation expertise, while its traditional bread and butter of business strategy PowerPoints now accounts for less than 20% of its work.
Joan Cros/Getty Images
It looks like AI chatbots that can answer questions by synthesizing humanity’s knowledge in seconds aren’t killing consultant billable hours. Consulting and outsourcing firm Accenture surprised Wall Street with a strong earnings report yesterday, propelling its stock up as much as 22%.
Advice still sells
Accenture’s strong earnings and rosy outlook for next year eased concerns that AI will replace professional recommendation-givers. The firm said its revenue rose 7% last quarter compared to the previous year.
AI might be creating more consulting work: Accenture also announced a record number of new contracts with large clients like Alphabet and Amazon.
The company said its major clients, like FedEx and BP, are embracing AI tools and turning to their human consultants for technical guidance. It also recently signed a $2 billion deal with Anthropic to help the AI lab ensure its products are safe for companies to use.
Still, Accenture’s stock is down by more than 20% since the start of the year, even after yesterday’s surge, as many analysts warn that AI will hurt its international IT outsourcing business—a major source of revenue.
And consultants’ jobs are changing: Fellow consulting powerhouses like McKinsey and EY say they’re increasingly charging clients based on delivery of measurable results rather than by the hour. McKinsey shared last year that it’s focusing on projects that involve tech implementation expertise, while its traditional bread and butter of business strategy PowerPoints now accounts for less than 20% of its work.
