AI boom sparks growth in consultancy work

Demand for services surges as firms figure out how to get new tech to help them

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After ChatGPT came out in 2022, the marketing team at Reckitt Benckiser, which makes Lysol and Mucinex, was convinced that new artificial intelligence (AI) technology could help its business. But the team was not sure how, so it turned to Boston Consulting Group for help.

Reckitt's request was one of hundreds that Boston Consulting Group received in 2023. It now earns a fifth of its revenue from zero just two years ago through work related to AI.

"There's a genuine thirst to figure out what are the implications for their businesses," said Mr Vladimir Lukic, Boston Consulting Group's managing director for technology.

The next big boom in tech is a long-awaited gift for wonky consultants. From Boston Consulting Group and McKinsey to IBM and Accenture, sales are growing and hiring is on the rise because companies are in desperate need of technology sherpas who can help them figure out what generative AI means and how it can help their businesses.

While the tech industry is casting about for ways to make money off generative AI, the consultants have begun cashing in.

IBM, which has 160,000 consultants, has secured more than US$1 billion (S$1.36 billion) in sales commitments related to generative AI for consulting work and its watsonx system, which can be used to build and maintain AI models.

Accenture, which provides consulting and technology services, booked US$300 million in sales in 2023.