Many consulting firms have embraced AI by expanding their technology capabilities because their clients are phrasing the ask and needs in the form of technology transformation. Underneath the surface though, clients only care about using AI to increase sales, grow margins, reduce expenses, mitigate risks, and drive higher business valuations.
AI should be like any other business investment. It must generate a higher rate of return than other comparable business investments. However, most of the AI service providers are selling AI instead of outcomes like there is some inherent magic in AI.
Consulting firms must productize their service models to optimize value and reduce service costs. Productized services are easier to market, sell, and deliver consistently. Productized services generate higher margins, more cash flow, more investment, and higher valuations. Clients do not care about the method of providing services. They do care about services that drive more cash flow, recurring revenues, competitive advantages, and the valuation of their business.
Question: When clients engage your firm, are they primarily buying expertise about AI or are they buying measurable business outcomes that AI can help achieve?