The AI Imperative in Consulting: From Advisory Reports to Embedded Solutions
Why Supply Chain Consulting Firms Must Embed AI into Client Operations or Risk Becoming Obsolete
The supply chain consulting industry faces a radical shift, driven by the relentless integration of artificial intelligence (AI) into enterprise operations. James O'Dowd, Founder & Managing Partner at Patrick Morgan, ignited this pivotal conversation with a provocative LinkedIn post, challenging traditional consulting models and prompting rich debate among experts.
O'Dowd stated boldly: "Consulting is at a crossroads. Firms must pivot from advisory decks to embedding AI-driven systems directly into client operations, or face irrelevance." His assertion resonated deeply, eliciting diverse reactions that underscored both the opportunities and challenges this transformation presents.
From Advisory Decks to AI-Embedded Operations
The concept of shifting from strategic advice to embedded AI operational systems found significant support. Michael Friedman, Strategic Systems Architect, captured this shift succinctly: "The game isn’t strategy decks anymore. It's systems you can't function without. Big Tech is writing itself into the spine. The Big 4? Still handwriting instructions." His perspective highlighted the fundamental change required in consultancy approaches.
Krishna Challa, Founder & CEO at MonkDB, expanded this viewpoint, noting, "Clients don’t want advice - they want systems that stay behind and run the show." Challa emphasizes the demand for persistent, embedded solutions rather than temporary advisory recommendations.
David Honig, a SaaS executive, reinforced this by pointing out, "The Big 4 are still writing PowerPoints while OpenAI is embedding itself directly into enterprise workflows." This shift underscores how traditional consultancies risk being sidelined as tech giants integrate deeply into operational backbones.
The Power of Human-AI Collaboration
Ian Wilding, Founder & CEO at Hangar 75, offered a practical analysis through experimental frameworks:
Pure AI with no human input.
Senior Strategist combined with AI.
Domain Expert paired with AI.
Wilding revealed a clear finding: "Human-AI symbiosis wins every time." His research emphasized that optimal outcomes arise when human intuition and experience complement AI capabilities.
Echoing this sentiment, Adam Sliwka, Director at KPMG Czech Republic, stated, "If someone genuinely believes AI can replace advisors, they’ve likely never used advisors the right way." He stressed that nuanced judgment and human expertise remain crucial.
Big Tech as a New Consulting Challenger
Bart Doomen, Board Member at SAP Benelux, highlighted the threat posed by large software vendors directly offering consulting services. Doomen argued these companies have become de facto top-tier consultancies, delivering integrated processes and deep industry benchmarks that traditional consulting firms struggle to match.
Similarly, Yohann Bollack, Executive Director at Accenture, recognized this shift: "The lines between consulting and building are indeed blurring, forcing the entire ecosystem to focus on real and lasting impact." He acknowledged that consulting's future lies in embedding operationally critical, AI-driven solutions rather than just providing strategic guidance.
The Opportunity for Boutique Consultancies
Despite these challenges, boutique and niche consultancies see significant opportunities arising from AI disruption. Jay Singh, CEO at Casper Studios, observed, "Small consulting—focused teams, faster execution, affordability—will thrive. This is the classic bundle-unbundle cycle."
Andrea Biasiucci, CEO at confinis, further elaborated, noting boutique firms possess specialized expertise crucial for "turning their data and know-how into assets leveraged by AI implementers." This unique position provides smaller firms a clear competitive advantage in delivering highly customized AI solutions.
Organizational Readiness: A Critical Barrier
Despite enthusiasm surrounding AI, Ing. Amir S. offered a critical reminder of the foundational requirements for AI success: "If you don’t know your current state, AI will scale dysfunction, not solve it." Amir underscored that process clarity, robust governance, and effective change management are prerequisites, cautioning against premature AI implementation.
Christian Starnes, Enterprise Account Executive at Diligent, agreed, emphasizing, "Businesses seem to be completely tripping and replacing workflows with AI, instead of being targeted and purposeful. This needs strategic planning."
Consulting as Risk Management
Ihe Onwuka, XML and RDF Technologist, highlighted a critical dimension often overlooked: "Organizations hire big consulting because they can be held liable." Victor Zhang supported this view, clarifying, "The C-suite hires consulting firms primarily for shifting responsibility." These insights emphasize a risk management aspect that will likely remain significant despite technological disruption.
Evolving Talent Needs: Engineering Over Traditional MBAs
The talent landscape within consulting is also shifting dramatically. Indrajit Palit, Product Leader at Lodgify, sees future consultants as "embedded engineers rather than MBA grads," reflecting a shift towards technical and operational expertise.
Nathan Hanks, VP of IT, articulated the urgency in developing internal AI capabilities, stating, "We struggle mightily to find good AI talent in consulting firms. The question is, can we get our internal staff up to speed fast enough?"
AI Replacement: Healthy Skepticism
Several experts expressed skepticism about AI completely replacing human consultants. Stephen Wunker, Managing Director at New Markets Advisors, emphasized the irreplaceability of human interaction, stating, "AI won’t replace thoughtful dialogue, consensus-building, and trust."
Peter W., a data science and security executive, reinforced this, saying, "Humans want to hear from humans who have been there. AI procedures, yes, but human decision-making is far more complex."
Embedded, Subscription-Based Consulting
Robert Streeter, CEO at TheAX.ai, envisioned a future where "consultancies equip themselves with AI systems embedding directly into client businesses, generating subscription-based services." He anticipates smaller consultancies adopting these flexible and persistent operational models effectively.
Embed or Perish: Consulting's Imperative
Graham Hogg, CEO at see6, encapsulated the strategic imperative clearly: "In the AI era, the power isn't in a slide deck. It’s in workflows, not workshops; code, not concepts." Firms that fail to adapt and embed AI-driven solutions risk obsolescence in a rapidly evolving market.
Conclusion
The future of supply chain consulting hinges on embedding sustainable, AI-powered solutions deeply into enterprise operations. Consultancies must adapt swiftly to deliver enduring value, operational integration, and strategic impact or face irrelevance in the fast-approaching AI era.
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