What's Happening?
A recent study by Emergn highlights concerns among businesses regarding the role of consultancies in AI-driven transformations. The study, which surveyed 751 global organizations, reveals that while many companies are investing in AI to drive growth, they face significant challenges due to a lack of data and AI skills. This skill shortage has led to delays in digital transformation projects, with some failing outright. The study indicates that 87% of companies do not feel consultancies are alleviating transformation fatigue, and 37% view them as contributors to the challenges in change programs. The research suggests that the issue is not the use of external partners per se, but rather the need for the right partners who can effectively integrate with internal leadership and focus on capability transfer.
Why It's Important?
The findings underscore a critical issue in the adoption of AI technologies: the gap between technological potential and organizational readiness. As companies strive to leverage AI for productivity and growth, the lack of skilled personnel and effective consultancy support can hinder progress. This situation poses a risk to businesses that may overestimate the benefits of AI without addressing the necessary human and organizational factors. The study's insights are particularly relevant for the consulting industry, which must adapt to better support clients in navigating complex technological changes. The broader implication is that successful AI integration requires not just technology, but also a strategic focus on building internal capabilities and managing change effectively.
What's Next?
Organizations may need to reassess their partnerships with consultancies, focusing on those that can provide clear value in terms of capability building and sustainable change management. This could involve redefining the roles of external partners to ensure they complement internal leadership and contribute to long-term success. Additionally, businesses might invest more in training and developing their workforce to bridge the skills gap, thereby reducing reliance on external consultants. As AI continues to evolve, companies will likely need to adopt a more holistic approach that balances technological innovation with human and organizational development.
Beyond the Headlines
The study highlights a potential shift in the consulting industry, where traditional models of engagement may no longer suffice. As AI becomes more integrated into business operations, consultancies might need to evolve their offerings to include more strategic advisory roles that focus on long-term capability building rather than short-term implementation. This could lead to a reevaluation of how consultancies are perceived and utilized by businesses, potentially reshaping the industry landscape.
