The AI Consulting market is projected to reach $630,611.25 million by 2029. This begs an important question: does business require AI consulting? Let’s find out through this blog.
“AI is probably the most important thing humanity has ever worked on. I think of it as something more profound than electricity or fire”, said Sundar Pichai, CEO of Google. This profound comparison underscores Artificial Intelligence’s pervasive influence and potential, a reality echoed by the staggering 30.45 million search volume for “AI” in March 2023 alone.
In 2022, the worldwide AI Consulting market reached a value of USD 93,472.06 million. Over the forecast period, it is projected to grow at a CAGR of 37.46 percent, ultimately reaching USD 630,611.25 million by 2029 — a staggering amount for a new industry!
In this dynamic, rapidly evolving field, the question isn’t merely whether to adopt AI but how to do it effectively and strategically.
Previously, we delved into the potential unlocked by companies when utilizing the services of AI consulting firms. However, the focus now shifts to a crucial question: Why does your business require AI consulting today?
With the increasing importance of AI in the business landscape, startups and organizations recognize the value of investing in AI applications. However, a significant hurdle to AI adoption is the lack of technical expertise in this rapidly evolving field, which can slow the adoption rate.
This is where AI consulting firms play a pivotal role. Market Growth Reports expects the AI Consulting market to grow by a CAGR of 37.46. This is leaps and bounds ahead of every other industry. These numbers, however, are expected as up to 50% of companies in industries like customer service have already switched to using some form of AI in their business model. These growth stories would not be possible without effective AI consulting firms that help businesses identify the right AI tools and technologies. Moreover, they help create a system that non-technical business users can use.
An AI consulting firm might help a retail business identify opportunities for AI. The opportunities can exist across inventory management, customer segmentation, or personalized marketing. They could also assist a healthcare provider in recognizing how AI can enhance patient care, streamline administrative tasks, or improve data management. With every industry having its own requirements, an AI consulting firm can customize its AI solutions to best fit your business needs.
AI consulting firms, like Kanerika, are equipped with a deep understanding of the AI landscape. Moreover, we have the ability to align AI capabilities with business objectives. Kanerika offers invaluable support in identifying and evaluating promising AI applications that can drive business growth. AI experts conduct a thorough assessment of the feasibility and potential of AI projects. As a result, ensuring that the AI implementation aligns with your overall business strategy and delivers maximum value.
At Kanerika, we’ve seen AI consulting transform our clients’ day-to-day operations. Let’s explore a case study featuring a valued conglomerate with global reach in various industries. They sought to extract insights from vast unstructured data, and our AI solution using NLP and ML algorithms was the answer.
Our impact was immediate — through data-driven insights, streamlined data processing, and agile decision making; we helped our client transform their business operations by optimizing the efficiency of their existing business processes. We achieved this by using automated AI tools that enabled faster and more efficient data collection from unstructured data.
Similarly, AI and other technologies can help scale your business. Simultaneously, they enable you to optimize your team’s efficiency with the right tools and strategies.
McKinsey says AI can enhance business efficiency by up to 40% and slash operational costs by as much as 30%.
Developing an in-house AI system can range from $1 million to $10 million, whereas opting for a vendor’s services may incur an annual cost of over $100,000.
While investing in AI holds immense business potential, it also carries financial risks without proper guidance. To ensure cost-effectiveness, AI consulting becomes crucial. Companies must identify AI-ready processes that align with their specific needs. The decision to build an in-house system or use an external vendor requires careful evaluation.
An AI consultant aids in making informed choices, optimizing the balance between initial investments and long-term benefits. Companies can confidently navigate the AI landscape with AI consultants and secure profitable returns.
According to MIT Sloan, 75% of top executives believe AI will enable their organizations to grow and gain a competitive advantage.
AI gives businesses a distinct competitive advantage, as demonstrated in a compelling case study of a premier perishable food production company. The complexity of their supply chain necessitated a comprehensive solution to optimize, enhance visibility, and mitigate risks.
Leveraging advanced data models and TensorFlow, Kanerika’s AI team devised a Supply Chain Collaboration Platform (SCCP) that revolutionized the client’s operations. The LSTM model enabled accurate demand forecasting, better planning, and production scheduling. Extensive data analysis identified potential bottlenecks and suggested risk mitigation strategies like supplier consolidation.
The result? Improved supply chain performance, enhanced customer satisfaction, and a competitive edge.
Similarly, your business can stand at a risk of falling behind your competitors if it does not adopt the latest AI technologies that have been successfully used in the market. Hiring an AI consulting firm can help smoothen the process by evaluating your business priorities, performing competitive analysis and identifying market opportunities for you.
In 2022, approximately 50% of US marketers boosted their investments in AI for customer experience (CX), as stated in a recent report. This surge in AI spending aligned with the overall rise in CX technology investment. Hence, culminating to a $641 billion market in the same year.
IBM reports AI heralds a new era in CX strategy, design, and development, paralleling the transformative impact of the internet on print professionals. Many companies (50%) already embrace AI for rapid insights, automated campaigns, and seamless customer touchpoints.
However, most companies investing in AI for customer experience are inexperienced in the AI domain. They can risk creating faulty products that can cause irreversible damage to your business-client relationships. It is important to let an AI Consultant drive the project forward. Additionally to test your AI-enhanced product for bugs and accuracy issues before deploying it live for your clients.
Forbes noted, “A data-driven business predicts what will happen before it does and gets a head start on the competition.”
AI and ML have revolutionized technology, offering businesses unprecedented opportunities. AI generates meaningful insights by analyzing vast data volumes, leading to data-driven decision-making. This approach enhances customer experiences, automates processes, and drives a remarkable 70% improvement in operational efficiency.
At Kanerika, we recognized AI/ML’s transformative potential early on, assembling an expert team proficient in developing and deploying AI/ML solutions across diverse industries. With our support, clients have achieved remarkable outcomes. Such as 40% cost savings, substantial FTE reduction, 60% process optimization, and a 35% reduction in resource utilization.
Your business can also benefit from data-driven insights by partnering with an AI Consultant. A consultant who can help set up the right technology to capture and process data for your business.
Scalability and flexibility are key factors in the successful implementation of AI. As your business grows and evolves, so will your AI needs and applications. An AI consulting firm can help ensure that your AI solutions can scale with your business. As well as, handle increased data volumes and more complex AI tasks without compromising performance or efficiency.
For example, consider an e-commerce business that initially uses AI for personalized product recommendations. As the business grows, it may want to expand its AI applications. It can include predictive inventory management, automated customer service, and data-driven marketing strategies. An AI consulting firm can help the business scale its AI capabilities to accommodate these new applications. Subsequently, the firm can ensure seamless integration and optimal performance.
Risk mitigation is a critical aspect of any business strategy. It becomes even more important when implementing advanced technologies like AI.
For instance, consider the case of a healthcare organization looking to implement AI for patient data analysis. The organization must ensure that the AI system complies with all relevant privacy regulations, such as HIPAA, in the United States. Failure to do so could result in severe penalties and damage to the organization’s reputation. An AI consulting firm can help the organization navigate these complexities. Thus, ensuring that the AI system is compliant and patient data is handled securely.
Another risk associated with AI implementation is the potential for bias in AI algorithms. If not properly managed, AI systems can perpetuate and amplify existing biases, leading to unfair outcomes. AI consulting firms can help businesses identify potential sources of bias in their AI systems. As well as, develop strategies to mitigate them, ensuring that the AI system produces fair and unbiased results.
Since the fall of 2022, AI, including ChatGPT and GPT-4, has become a focal point for the future of business and learning. In fact, Morgan Stanley Wealth Management (MSWM) recently announced a significant innovation milestone by partnering with OpenAI, an AI research lab, to develop a custom solution.
This move has set an unprecedented example when establishing future-proofing operations in a business.
Kanerika believes that amidst predictions of economic turbulence, investing in technology becomes essential for future-proofing businesses, even if it isn’t an immediate priority.
This is where your business can capture the market by positioning itself ahead of the competition by integrating AI into its products and services. This will not only make your business more efficient but will also benefit your customers.
As innovation maverick Peter Diamandis aptly said, “The best way to predict the future is to create it yourself.”
In the face of seismic technological changes, AI consulting firms such as Kanerika play an increasingly pivotal role in helping businesses create their own future. Kanerika’s commitment to delivering cutting-edge AI/ML solutions has been exemplified through its partnerships with leading technology companies like Microsoft, UiPath, Blue Prism, and Automation Anywhere.
With a proven track record of numerous success stories across industries and a team of data and AI experts, Kanerika empowers businesses to future-proof themselves with scalable AI/ML solutions.
A significant 84% of C-level executives recognize the necessity of adopting and harnessing Artificial Intelligence to achieve their growth objectives, as per Accenture.
Beat them to the race. Book a consultation with Kanerika today!