Kevin O'Leary: AI Replaces Consultants in His Companies

Kevin O'Leary Bets on AI to Replace Consultants

Kevin O'Leary, the famous investor from "Shark Tank," recently expressed his belief that artificial intelligence (AI) is taking the place of traditional consultants in the companies he supports. According to him, this radical shift has materialized over the past two years, during which companies have begun to favor AI for tasks that were once entrusted to consulting firms. O'Leary even claimed that the days of consultants are numbered.

O'Leary, who is currently focused on opening a hyperscale AI data center in Utah, emphasized that even the companies in which he invests, which previously relied heavily on consultants for very specific vertical situations, are now turning first to AI. These tasks include strategic decisions such as choosing between different levels of distribution in the retail sector. This approach not only helps reduce costs but also accelerates decision-making processes.

AI as a Strategic Tool for Businesses

In a recent appearance on the podcast "The Founder's Mindset," O'Leary explained that companies are asking their internal management teams to test ideas generated by AI. This method allows them to bypass traditional consultants, a trend that has accelerated over the past 24 months. He stressed the speed of this change, which reflects a growing adoption of AI in the business world.

In response to this evolution, traditional consulting firms are striving to adapt. They are developing their own AI-based tools and testing them with their clients. To remain competitive, these firms are heavily recruiting specialized engineers and collaborating with Silicon Valley startups to integrate the latest technological innovations.

Consulting Firms Adapt to the AI Era

Despite the threat that AI poses to their business model, many large consulting firms also see opportunities. McKinsey, for example, reports that 40% of its projects are now related to AI. Meanwhile, BCG expects that 20% of its activities in 2024 will focus on AI. Accenture, for its part, has recently restructured its services to create a unit dedicated to AI reinvention, combining strategy, consulting, technology, and operations.

These firms charge their clients to help them integrate technologies from Silicon Valley while also adopting these innovations themselves to enhance their services.

A Consulting Career Called into Question

Although consulting firms may survive this technological revolution, Kevin O'Leary remains skeptical about the value of a prolonged career in this sector. According to him, a short stint in consulting can be beneficial for young professionals seeking their path, but a longer career in this field could limit advancement opportunities. O'Leary used the term "mediocrity" to describe a prolonged career in consulting.

O'Leary believes that less than two years of consulting experience can help explore various economic sectors, specifically mentioning the "11 sectors of the economy." However, he considers that a longer career can lead to professional stagnation. He even goes so far as to say that he tears up the resumes of those who have spent seven years in a consulting firm when looking for leaders for his companies.

However, this view is not shared by everyone. Sundar Pichai, CEO of Google, and Sheryl Sandberg, former COO of Meta, both started their careers at McKinsey, illustrating that consulting can also be a springboard to leadership positions in the largest tech companies.