Language models are the new norm for management consultants

In today’s dynamic and tech-driven environment, consultants can no longer rely on traditional methods. They need powerful technologies that enable them to make strategic decisions faster and more accurately. One of the most important tools in this regard is language models, writes IBM Consulting leader Jonathan Wright.

Language models are essential for consultants who work with large amounts of unstructured data, such as customer feedback, internal reports, and policy documents. Using language models, consultants can not only process and generate natural language but also efficiently organize, analyze, and interpret data. This gives them deep insights that might otherwise go unnoticed, leading to faster and better-supported decisions based on optimally processed data.

No wonder 86% of consulting firms are actively seeking solutions that leverage AI and technology, as revealed by research from IBM and Oxford Economics. This research also shows that 75% of consulting firms expect AI to have a positive impact on their use of consulting services.

One of the biggest challenges for consultants is creating reports and presentations based on the collected data. Language models automate these reporting processes, improving the quality and consistency of the documents. This allows consultants to spend less time on manual documentation and focus more on strategic analyses, with the models supporting them in structuring their key findings and recommendations.

Moreover, using language models provides consultants with a competitive advantage, as they gain insights into unstructured data faster and more accurately. This enables them to quickly respond to market changes and advise their clients in a timely and effective manner. Language models also enhance communication with clients, for instance, by providing quick and consistent responses through chatbots or virtual assistants. This facilitates the work of consultants and increases customer satisfaction.

Furthermore, language models can identify patterns and insights in large volumes of data, giving consultants quicker access to relevant information. This allows them to effectively navigate internal documentation, previous projects, and other important resources, increasing efficiency and promoting learning from past experiences.

Additionally, their ability to perform rapid and advanced analyses enables consultants to make well-informed strategic decisions and identify key risks, which is crucial in a rapidly changing market.

Training, improving, and communicating

When implementing language models in consultancy practices, it is essential to carefully train and adapt these models to the specific needs of the industry or project. By feeding them relevant, domain-specific data, they can deliver context-specific insights that align with client needs. Language models should also be seamlessly integrated into existing workflows so they are not seen as standalone tools but as an integral part of daily operations.

In addition, the success of language models depends on continuous improvement. This can be achieved by implementing a feedback mechanism where human experts review and adjust the output of the model. This increases the accuracy of the models, leading to better analyses and stronger recommendations.

In order to achieve usable results faster, with higher data quality and lower costs, more and more consultants are opting for smaller, focused datasets instead of large, unstructured datasets. This approach makes it possible to work more efficiently and purposefully, without sacrificing relevance or precision.

Consultants must also proactively communicate with their clients about how the language models work and their benefits. Transparency regarding the capabilities and limitations of this technology, such as potential errors or biases, helps manage expectations and build trust in AI-driven recommendations.

Despite the automation of routine tasks, such as report generation, it is crucial for consultants to always maintain final control to ensure that the results meet the quality standards clients expect.

Technology and human expertise must be in synergy

In a rapidly changing world, consultants are indispensable for organizations that want to compete. Language models enable them to process large amounts of unstructured data efficiently, resulting in faster and better-informed strategic decisions. However, it is crucial for consultants to continue leveraging their human expertise to ensure quality.

The synergy between technology and human skills can significantly enhance the effectiveness of consultancy practices, benefiting both consultants and their clients. In summary, language models are the new norm, but human insight remains essential for realizing valuable consultancy solutions.

About the author: Jonathan Wright is Managing Partner of Northern, Central and Eastern Europe at IBM Consulting.