The AI Boom in Consulting: Is It Worth It?

As consulting firms deploy thousands of AI agents, they're racing to understand the true value of this technology.

TL;DR
• Consulting firms are deploying thousands of AI agents to automate tasks and improve productivity.
• They're now trying to measure the value created by these agents.
• The emphasis has shifted from adoption to measuring the impact of AI on human labor and revenue.

Summary
Consulting firms like McKinsey, PwC, EY, and BCG have deployed thousands of AI agents to transform their operations and advise clients. They are now trying to measure the true value of these AI agents. The firms are tracking metrics such as time saved, productivity, quality, and cost efficiency to understand the impact of AI on their work.

The emphasis is shifting from adoption to measuring the value created by AI agents. PwC's chief AI officer, Dan Priest, said the firm focuses on deploying 'specialized AI agents' that have earned that designation because they're good at what they do. EY tracks the value created by its AI agents through key performance indicators for productivity, quality, and cost efficiency on a month-to-month basis.

BCG tracks its agents by the metric of time reclaimed and whether that time is then reinvested in higher-value work. According to Scott Wilder, a partner and managing director at BCG, humans at the firm now spend about 15% less time on low-value activities, and those people are reinvesting about 70% of their saved time into higher-value activities. The saved time can also mean more free time for employees, with BCG finding that employees keep about 30% of the time AI saves.

Key actionable insights include:
• Tracking the value created by AI agents, such as time saved and productivity improvements
• Focusing on deploying specialized AI agents that have a high rate of human adoption
• Measuring the impact of AI on work and whether it leads to higher-value activities
• Reinvesting saved time into higher-value work or allowing employees to have more free time

As AI continues to transform the consulting industry, it's essential to consider the potential benefits and drawbacks of relying on this technology.