The AI Hype in Consulting: Time for Specificity, Not Buzzwords

"We reinvent your company with AI." "Unlocking AI's potential in your business." "Navigating the enterprise AI landscape."

Consulting firms, both those enhancing business problem-solving with AI and those specializing in AI technology implementation, are flooding the market with vague, overpromising language.

But the AI hype has reached saturation, and clients are increasingly skeptical.

The explosion of AI interest since early 2023 has created two distinct types of consulting firms in this space:

1. Business-centric consulting firms address fundamental business challenges (e.g., supply chain risk reduction, innovation optimisation, sustainability compliance advisory, customer experience and service optimisation, etc.). They increasingly incorporate AI into their methodologies, processes, and service delivery. AI enhances these firms' problem-solving approach rather than being the cornerstone of their value proposition.
   
   
2. Technology-Centric AI Consulting Firms: These firms specialise in the technical implementation and adoption of AI tools and technologies. While they are consulting firms rather than software vendors, their expertise lies in AI integration, deployment, and ensuring that enterprises can effectively adopt and utilise AI solutions.

Both types of consulting firms frequently fall into the trap of vague AI-driven messaging, failing to articulate a clear, issue-led, outcome-based value proposition. To remain relevant and credible, they must substantially refine their consulting proposition and language.

Business-Centric Consulting Firms: AI as an Enabler, Not the Story

Many business-centric consulting firms are bolting AI onto their existing services, but few can clearly articulate its impact. Clients aren’t buying AI—they’re buying solutions to pressing business problems or opportunities.

Yet, value propositions like “We transform your business with AI” say nothing concrete about the actual problems being solved.

C-level leaders aren’t looking for another firm that "leverages AI." They need partners who can diagnose and solve their most critical business challenges and opportunities, whether AI is involved or not.

A better way to position AI-enabled expertise would be:

• Instead of: "We optimize your supply chain with AI-driven insights."
• Say: "We help enterprises reduce supply chain risk by 30% by using AI to predict supplier disruptions and optimize inventory buffers."

Or:

• Instead of: "We accelerate business transformation through AI."
• Say: "We cut operational costs by 25% by embedding AI-enabled process automation into high-friction workflows."

The emphasis should be on the measurable business impact, not the tools employed to achieve it.

Overemphasising AI risks undermining their consulting reputation and diminishing the strategic expertise that clients genuinely value.

Recommended reading: There Are Two Ways to Run a Consulting Firm. One Drains Profitability.

Technology-Centric AI Consulting Firms: More Than Implementation

Technology-focused AI consulting firms encounter a different issue: They frequently promote AI adoption without adequately defining the business case. Many highlight their technical capabilities instead of their capacity to deliver significant business outcomes.

Clients do not require additional AI vendors; they seek strategic partners who can elucidate AI’s role in their business, showcase proven use cases, and enhance AI literacy to facilitate better AI-related decision-making.

Generic consulting propositions such as "We are AI experts helping enterprises integrate cutting-edge AI technologies" are devoid of meaning without specificity. A more effective approach would be:

• Instead of: "We integrate AI into modern enterprises."
• Say: "We reduce fraud detection time by 40% by deploying AI-powered anomaly detection in financial transactions."

Or:

• Instead of: "We help companies adopt AI."
• Say: "We guide enterprises through AI adoption by identifying high-impact use cases, mitigating risks, and ensuring regulatory compliance."

Aside from the messaging issue, most technology-focused AI companies overlook a fundamental truth: AI adoption is not merely about implementation but also about guaranteeing business impact. This involves providing clients with:

• A clear business case for AI adoption—why it matters, what problems it solves, and how it ties into broader strategic objectives.
• Proven use cases relevant to their industry, showing measurable outcomes and ROI.
• AI literacy development for executives, enabling them to make informed decisions about AI investments and implementation roadmaps.

Without these, AI services become a technical exercise with little executive buy-in or strategic value.

Consulting Firms Need to Recognize Two Distinct AI Buyer Segments

Both business-centric and technology-centred AI consulting firms make a common error: assuming that all AI buyers have identical needs. In reality, AI adoption follows varied trajectories, and consulting firms must refine their value proposition accordingly.

There are two primary buyer segments:

• New AI Buyers: Companies that are exploring AI for the first time. They require education on potential use cases, strategic alignment, and clear guidance on adopting AI without unnecessary risk or distractions from business as usual.
  
  
• Experienced AI Users: Companies that have experimented with AI but encountered challenges such as failed pilots, insufficient ROI, or ineffective implementation. They require assistance in optimising AI for more significant business impact or regaining internal trust in its capabilities.

Each group has distinct concerns and decision-making triggers. Yet, most consulting firms lump them together under generic AI messaging. This is a fundamental oversight.

• For New Buyers: “We help enterprises identify high-impact AI opportunities, build a roadmap, and ensure smooth adoption without disrupting core operations.”
  
  
• For Experienced Users: “We diagnose and rectify failing AI initiatives, ensuring they provide more measurable business value or ROI and are seamlessly integrated into operational workflows.” Alternatively: "We specialise in identifying the most effective industry-related use cases, informed by the client's existing AI experiences.”

By recognizing these different needs, consulting firms—whether business-centric or technology-centric—can shift from generic AI evangelism to offering real strategic value. Without a clear distinction in messaging, firms risk losing relevance with both groups.

Recommended reading: Building a Winning Consulting Value Proposition

Conclusion. The AI Consulting Market Needs a Reality Check

The AI hype in consulting has reached its peak, and clients are growing weary. Both business-centric and technology-centric consulting firms must stop hiding behind AI buzzwords and get laser-focused on articulating why their expertise matters and what business problems they solve.

• AI is not the story. Business outcomes are.
• Generic AI promises are meaningless without proven use cases and tangible ROI.
• Clients need partners who can leverage or implement AI and help them make better decisions, improve processes, etc., with AI or about AI.

The competition in AI consulting is intense. To distinguish themselves, firms must go beyond vague, self-promotional AI jargon and establish trust and credibility through clear, audience-specific value propositions that tackle tangible business challenges and provide measurable results.

The hype fades. Expertise endures. Time to get specific.