Artificial Intelligence in Management Consulting.

Useful or dangerous?
Artificial Intelligence (AI) is a rapidly advancing technology that is changing the way businesses operate and interact with consumers. Most businesses are turning to artificial intelligence to increase efficiency and gain a competitive edge in the marketplace.

Artificial Intelligence can also be an interesting complement to classic, method- and knowledge-driven approaches in Management Consulting. Let me explain where AI can be useful - and when AI is useless or even dangerous when used as substitute to human intelligence.

1 When AI is useful

AI can support and speed up processes that are needed to get to the heart of a business issue. This is especially true in data analysis, where AI-powered tools can quickly sift through huge amounts of data, such as social media posts or customer reviews, to find patterns that would be difficult or impossible for humans to spot.

For example, consultants might use AI to analyse a client’s customer data to identify trends and insights that can be used to improve the client’s marketing efforts. It can also help identify patterns or correlations that a human consultant might not be able to see and develop new insights and perspectives that would otherwise be invisible.

Finally, AI can also be used to enhance human abilities. For example, consultants may use AI-driven chatbots to improve their efficiency in communicating with clients, or they may rely on virtual assistants that help with daily tasks such as scheduling meetings, sending status emails and optimizing the workload within a team.

2 When AI is not useful

AI is generally not good at understanding the context of a business issue or making decisions based on ethical considerations. It also cannot replace the human relationships that are so important in Management Consulting.

Another issue is the data-based approach of AI: when exploring a question, Artificial intelligence is relying on existing data and judges the relevance of information to end up with something meaningful. This often works amazingly well. However, the greatest level you may reach is that of ‘best practices’. This means that you’ll be as good - or as bad - as the others. But I strongly doubt that AI can bring the spark that will lead to real innovation and disruption, as it crucially lacks the creativity and inspiration of a real human being. I know, some of you may not agree with this. But in this case, I follow the poker rules: let me see your card before I believe that you have it.

3 When AI is dangerous

AI is often opaque, meaning that it can be difficult to understand how an AI-powered tool is making its decisions. This can be a problem when consultants are relying on AI to make strategic decisions for their clients in just believing the machine without human judgement.

Another issue is that the concept of ethics is not well established within the AI world. While AI may be able to present various options to a given situation, there must always be a check for ethics by real humans.

Furthermore, AI tends to confirm our existing biases, as it tends to reflect the biases of the data that it’s given. This is often a problem when AI is used to make decisions about people, as the AI may end up perpetuating existing biases.

Last, but not least: AI can substitute human intelligence, which can lead to job losses and other social disruptions. Hence, our society should urgently think how to handle this issue and continue and enhance the discussion of the ‘Robot tax’. I know, this goes beyond the scope of many management consultancies, but we must bear this in mind when advising our clients.

4 Conclusion

Artificial Intelligence can be a valuable tool for management consultants, but it should not be used to replace human intelligence or judgment. Used correctly, AI can speed up processes and help identify patterns that a human consultant might not be able to see. But when used incorrectly, AI can lead to suboptimal or unethical decisions.

We at AGILIS have discovered AI as a useful tool to boost human capabilities. But whenever we leverage AI, we make an ethics check and always validate the results with human intelligence. To us, it’s a question of common sense.

This is also the reason why I prefer to translate the acronym ‘AI’ as ‘augmented intelligence’ rather than ‘artificial intelligence’😉.

Would you like to discuss where Artificial Intellience can bring your business forward? Contact us, we'd love to hear from you!
 
Christophe
05.05.2023
Christophe Berger
Christophe is founder and CEO of AGILIS. In his twenties, Christophe founded an IT Services company that he grew over 13 years before selling it to a multinational group that he joined as manager. Although he is currently focusing on management consulting, his DNA lies in the digital world.