What happened
AI consultancy startups, founded by former big-firm consultants, are deploying software that automates traditional consulting workflows. TheAX, established by Ikum Kandola, automates data collection and reporting for small consultancies. Grasp, co-founded by Richard Karlsson, automates market research, valuation, and diligence for over 200 customers, reportedly saving consultants an estimated 15 hours weekly at one Big Four firm. This shift contributed to the UK AI consulting sector's 22% growth to £744mn in 2023, with a 33% forecast rise over two years, per Source Global Research.
Why it matters
AI-driven automation increases consulting project profitability by reducing manual effort and accelerating task completion. These tools enable smaller consultancies to undertake complex projects previously requiring extensive human capital, as demonstrated by Consultants in Business using TheAX for a large government survey. Procurement teams and founders should evaluate these tools to cut operational costs and expand service offerings, reshaping industry competition within the consulting industry.
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