The news: Consulting giant Accenture is investing $3 billion on AI technology in the next three years, indicating a more competitive adoption of emerging technology in the business consulting space.
Why it matters: Accenture, which over-hired and increased its workforce by 38,000 in 2022 to serve surging demand, recently cut 9,000 jobs, or 2.5% of its workforce, in efforts to adjust to a weakened economy.
No stranger to AI: Accenture has decade-long investments in AI and holds 1,450 patents for AI-related applications in marketing, retail, security, and manufacturing.
An industry in flux: Other consulting firms have similarly heeded the call to an AI shift, mostly to remain competitive and relevant in the face of AI’s potential to disrupt multiple industries. PitchBook expects generative AI investments to hit $42.6 billion by the end of the year.
Our take: Despite the sweeping enthusiasm for AI, consulting giants are still coming to terms with what the technology implies for their businesses in the long term.
Technology can’t replace the critical role of management consulting in addressing the human component, which is often the greatest hurdle in integrating new technologies into enterprise.
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