Every consulting firm is becoming “AI-first” on LinkedIn now. The phrase is everywhere in various different forms such as AI-first consulting firm, AI-native advisory firm, AI-enabled transformation partner, and AI-powered delivery model. It was the number one posting trend on LinkedIn today. The labels are changing faster than the operating models. Calling a firm AI-first does not make it the first to use AI effectively.
The real question is much more practical. Has the firm actually changed how it sells, delivers, measures, prices, governs, and scales client outcomes? In other words, has the firm transformed how it generates revenue and provides value to its clients? Readers of this newsletter know that we developed one of the first productized service delivery models. We released our flagship operating system, STAR, in January of 2026 without much industry fanfare.
STAR was the first productized model that analyzed an entire company in days as opposed to months with far stronger analysis, insights, and decision velocity than any manual framework could provide. STAR is built around continuous value throughout the year rather than episodic advice or recommendations. It provided our clients with far better measurable outcomes and our company with a far better business model.
For the last year, many consulting and advisory firms messaged AI like it was already powering their service delivery models and providing outcomes based results for clients. Websites were launched with AI language and strategy workshops were delivered. They posted about productivity, prompts, and added “AI transformation” to service pages. If you read between the lines, it was obvious that the messages were grounded in aspiration as opposed to fact because none of the firms that you talked to had changed their business models.
Clients are not seeing results from AI deployments because the focus for the past year has been on productivity automations and single purpose tool selection. You cannot use transformation in one sentence and productivity and tools in the next sentence. Automating back-office functions raises EBITDA and enterprise value to a limited extent. It has absolutely no impact on the nature of services provided to the client. Single purpose tools provided some minor productivity gains as well when they actually worked. However, they provided no measurable value to the firm's clients.
Most of the consulting and professional service firms that I talk to are using AI to draft blog articles, nurture campaigns, and emails. They are also using AI to perform research tasks and draft memos. There is no structure to how AI is being used. There are no standardized prompts, workflows, or systems. Each professional has their own process for using AI. In other words, there is no control over how AI is being used and no guidance on where it could create potential liability for the firm.
AI thrives on context. Yet, the lack of standardized prompts, workflows and systems leaves context up to the individual. The problem is that the required context to produce a "good" answer or deliverable does not exist within the firm and every one is self taught. Some people will include strong context and get good results. Others will include weak context which comes with a heavy risk of hallucination that can cause an individual to give the wrong advice. The safeguard is a burnt out and overworked partner or manager drowning in manual processes.
An AI-first advisory firm has at least seven distinctive characteristics.
It needs AI-enabled delivery workflows so the firm can produce faster, deeper, and more consistent analysis that does not depend on the talents of a single person.
It needs productized advisory systems so that every client is getting measurable outcomes that increase the value of their business.
It needs governance and risk controls so that client work does not create liability for the firm.
It needs quantified ROI models so that advisors can connect AI use to improvements in the client's EBITDA, cash flow, enterprise value, and business risk.
It needs to monitor AI adoption so the firm can isolate the professionals who cannot or do not want to change.
It needs to drive outcomes so that clients see the value of the firm's work.
It needs to train firm personnel on how to operate a productized service delivery model.
We have already built any productized service model you will ever need. You do not need to wait six months to a year for the products. We have already tested all of our products with our clients and we use them internally. Productization is a win-win for your firm and your clients. Your firm ends up with a far more durable and defensible business model. Your clients end up with a systemized approach to delivering measurable outcomes.
What is stopping you from embracing the change? DM me AI strategy and I will send you a link so that you can test our strategic planning module to see the power of AI based productized services.