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We asked. AI gave answers.
We asked. AI searched.
But then these tools kept evolving.
Now we ask. AI does.
Then what's the limitation?
What stops anybody from building and achieving anything they want?
Well, here's the irony.
When we have a tool that is more capable than any single one of us, we go back to the beginning:
The limitation becomes our own knowledge and judgement again.
Because that defines what we ask AI to do.
For example.
Let's say we'd like to build a business from scratch that will make 10 million in revenue a year.
Great.
What do you ask AI to do?
In closed games (like chess), it's simple.
You give the goal.
You get the result.
But business is an open-ended game with endless possibilities.
So if the knowledge of a person is limited, they'd ask AI to "build a business that will make 10 million."
AI would try...
But you can imagine how that would end up.
Now, imagine someone who has built many 10 million revenue businesses in one sector.
What would that person ask AI to do?
That person would get specific.
They'd break the problem into pieces.
Then evaluate where AI is doing well, what needs to change, and where to try new things.
This would keep going until the business eventually reaches 10 million.
So these two people would use the same tool.
But they would get drastically different results.
So where am I going with this?
In the AI era, the value of doing will vanish.
The value of specific knowledge and judgement will increase.
This puts consulting firms in a unique place.
Because they are in the business of selling knowledge and judgement.
And now they are armed with these amazing tools.
But this rapid development of AI will have some implications:
1. Specialization will be the only way to survive
Generalist consulting firms won't have a chance in this era.
Because AI is the ultimate generalist.
But specialists will thrive.
Because specialists have the most specific knowledge and the best judgement.
They are in the best position to get the most out of armies of AI employees.
They will be the ones who make precise requests.
And get precise results.
Clients will pay huge premiums for that precision.
They will ignore generalist firms that work with everybody and do everything.
Because AI can do it just as well anyway.
2. Selling capabilities will be a losing game
More and more buyers will have one question in their minds:
"Why should we work with this firm instead of AI?"
The firms that answer this question with capabilities like "software development" or "automation" will lose.
Because buyers will know AI can do these cheaper, faster, and better.
It will be like the outsourcing trend of the last 30 years.
This time companies won't be outsourcing capabilities to other countries, but to AI.
So consulting firms will have no other option.
They will have to sell specific outcomes, packaged in an opinionated story.
Communicating the emotional side of the work will become more important.
Whether it's removing anxiety, creating alignment, or providing certainty.
The firms that communicate best will win.
Because in a world where AI does everything, only that will show buyers the remaining reasons to hire a consulting firm:
Their specific knowledge and judgement.
3. Competition will get even more fierce
You see the news.
Big companies are announcing layoffs day after day.
Even though there is no crisis (yet), and stock markets are at all-time highs.
Unfortunately, it's inevitable.
Companies will get smaller.
They won't need as many employees anymore.
And those employees won't find jobs anywhere else, because those jobs won't exist.
So what will they do?
Well, most of these people have expertise in their areas.
So they'll use their networks to find projects and become micro consulting firms.
This model will also work for big companies.
They won't be locked into employment contracts anymore.
They'll be able to hire specialized people to solve problems on a project basis.
In a way, consulting will become the default way of working.
And micro consultancies will start eating up the market share of bigger firms.
That means competition will get even more fierce.
If you have a consulting firm, it's the best time to use your advantages.
Use your resources now to build more distribution, relationships, and a trusted brand.
Build bigger moats around your firm.
So when the big wave we see on the horizon arrives, you're already far ahead.
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Ozan
Founder - Frontera
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