Why AI Won't Replace the Human Touch in Strategic Consulting
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Why AI Won't Replace the Human Touch in Strategic Consulting
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By Naam Chakravorty
March, 2024
Before writing this article, we explored the potential of Artificial Intelligence (AI) by testing our hypothesis with free tools like Gemini and ChatGPT. While the generated drafts were surprisingly good, it sparks a critical question: as a reader, are you able to trust or even judge that this is a human output?
This very concern has become our dilemma as strategic consultants. We question whether incorporating AI into our work might diminish client trust in our deliverables. For years, our field has depended on humans' distinctive capacity not just to analyze data but also “read between the lines”. However, this ability is now under scrutiny, prompting us to reconsider the fundamental nature of intelligence and whether AI is a friend or foe to boutique consulting firms.
What is the evolving concept of intelligence - human vs artificial?
Though some argue that AI isn't truly cognitive, it's designed to mimic human intelligence. Coined in the 1950s, the term "AI" describes the field of creating machines that can act intelligently. This field is ever-evolving as new technologies emerge.
Machine learning and deep learning are the two cornerstones of AI, empowering computers to learn and predict future outcomes by analyzing past data. Deep learning, however, takes inspiration from the human brain with its "artificial neural networks," where interconnected layers of processing units mimic the structure of neurons. These networks learn by analyzing vast amounts of data and adjusting internal connections, similar to how we learn through experience. This has led to significant advancements in AI, such as self-driving cars.
While AI exhibits cognitive inclinations, it's crucial to remember it is not sentient and lacks the critical element of human judgment, especially in terms of strategic decision-making. AI models operate within predefined frameworks, excelling at analyzing data and identifying patterns. However, humans excel at understanding the "why" behind the data. They can consider historical context, cultural nuances, and unspoken dynamics that are often beyond the grasp of AI. Secondly, strategic advisory involves more than just crunching numbers or data; it's about fostering trust and rapport with clients. This requires human qualities like empathy, active listening, and the ability to address emotional concerns and subjective perspectives – something that AI, in its current state, cannot replicate. Finally, real-world challenges are rarely black and white. The human ability to weigh intangible factors like morale, consider ethical implications, and make intuitive judgments based on experience remains irreplaceable in navigating complex situations, such as those faced by strategic consultants. So how should strategists utilize AI, if at all?
Boutique firms face a double-edged sword with OpenAI tools
Big consulting firms have poured resources into building their own AI arms (like McKinsey's Lilli). These AI tools are used for tasks like data analysis, market research, report generation, and even suggesting recommendations in real time. Additionally, these AI systems reportedly organize and source critical data from numerous past projects, further streamlining their processes. However, due to the significant financial commitment required, such an investment still needs to be within reach for boutique consulting firms.
Open (and free) AI tools like ChatGPT can be a boon for boutique firms looking to compete in today's fast-paced business environment. However, there are also potential drawbacks to consider. Firstly, if used carelessly, these tools can damage a consultant's reputation. For example, ChatGPT's reliance on pre-2022 data could lead to critical details being missed during broad information searches. Additionally, the lack of transparency regarding their data sources necessitates thorough cross-checking of any information generated.
Secondly, there's concern that an overreliance on AI could lead to skill erosion among consultants. The fear is that a constant dependence on tools like ChatGPT might diminish critical thinking abilities, leading to a gradual atrophy of essential skills. Thus, strategic consultants must carefully weigh the benefits and drawbacks of OpenAI tools before integrating them into their work.
Optimizing the Human-AI Collaboration
In the face of a rapidly evolving landscape, consultants who aspire to maintain relevance and distinguish themselves from the competition must actively engage with the field of AI. Even if not for use, familiarity with its capabilities is essential for staying informed and adaptable.
For strategic consultants, AI tools like scheduling assistants (eg - Monday.com) writing assistants (eg - Jenna AI), paraphrasing tools (eg -Quillbot), and grammar checkers (eg - Grammarly) can be valuable time-savers, allowing them to focus on more strategic work. However, firms must maintain control to ensure the information is accurate, relevant, and customized to each client's specific needs.
Furthermore, Boutique consultants that utilize AI must consider developing strict policies for their employees, and effectively communicating with clients about its utilization. For instance, ensuring that sensitive information like clients' names or confidential data remains unutilized in any AI tool, with the tool strictly employed for accessing broad data sources. Proactive communication with clients regarding AI capabilities, constraints, potential risks, and advantages serves to underscore dedication to ethical AI practices. Obtaining informed consent concerning AI usage is crucial, both from legal and ethical standpoints.
Strategic Consultants and AI: A Symbiotic Dance
The future of strategic consulting doesn't lie in AI replacing humans but in their powerful collaboration. AI is adept at analyzing vast datasets, uncovering trends, and presenting options. However, humans possess the ability to interpret these insights through the lens of real-world context and human behavior, guiding clients toward the most impactful solutions. This synergistic collaboration fosters greater efficiency, allowing boutique consulting firms to channel their focus on strategic growth and potentially increased revenue generation.
So what do you think? Did AI or a human write this article?
Naam Chakravorty is Gulf Lead at Botho Emerging Markets Group