BCG Predicts AI to Drive 20% of 2024 Revenues, Doubling to 40% by 2026
Driven by increasing integration of AI into various corporate operations, Boston Consulting Group (BCG) expects AI consulting to account for 20% of its revenues in 2024, with the figure projected to double to 40% by 2026, as per a recent report by The FT. Christoph Schweizer, CEO of BCG, noted that the firm had seen unprecedented rapid relevance in topics like generative AI, which boosted their revenues last year as companies moved beyond experimenting with AI to deploying it at scale. “We have never seen a topic become relevant as rapidly as Gen AI,” he added. BCG has collaborated with tech giants like Microsoft, Google, Intel, OpenAI, and Anthropic to integrate their AI capabilities into clients’ business operations. The firm also focuses on training corporate boards and executive teams, who are now recognising AI as a critical business priority. Apart from clients, Schweizer has personally adopted AI tools to improve his productivity, using LLMs to manage tasks such as taking meeting minutes, composing emails, and summarising documents. This hands-on use of AI underlines its practical applications and effectiveness in streamlining complex administrative processes. Despite a challenging economic environment that slowed growth in other segments, AI consulting significantly contributed to BCG’s financial performance. In 2023, while the firm reported a modest 5% increase in total revenues to $12.3 billion—marking its weakest growth in seven years—the AI division’s performance helped offset declines elsewhere. For 2024, Schweizer is optimistic, noting that BCG’s sales growth in the first quarter was again robust, showing improvement in the teens percentage-wise. BCG has also been proactive in equipping its own workforce with AI tools. Approximately 3,000 employees in its BCG X technology and design division work directly with AI, and the firm has deployed AI resources to all 33,000 of its employees to assist with data management, text writing, summarisation, and presentation creation. Moreover, Schweizer has been vocal about the necessity for BCG to adapt and evolve just as it advises its clients to do. He emphasised the importance of ‘taking our own medicine’ when it comes to organisational change, showcasing a leadership approach that is both demanding and forward-thinking. While AI consulting has become a major revenue stream, Schweizer also highlighted that advising on climate change and sustainability remains BCG’s fastest-growing practice. Earlier this month, IT consulting and service giant Accenture disclosed that it successfully bagged multiple generative AI (GenAI) projects worth $600 million in the last quarter, building upon the $450 million projects secured in the preceding quarter. “We had over $600 million in new GenAI bookings taking us to $1.1 billion in GenAI sales in the first-half of the fiscal year, expanding our early lead in GenAI, which is core to our clients’ reinvention,” said Julie Sweet, chair and CEO, Accenture, during the earnings call. Additionally, consulting firms like PwC, EY, McKinsey, Bain & Co, and KPMG are also actively investing in generative AI.
CEO Christoph Schweizer has personally adopted AI tools to improve his productivity, using LLMs to manage tasks such as taking meeting minutes, composing emails, and summarising documents.
CEO Christoph Schweizer has personally adopted AI tools to improve his productivity, using LLMs to manage tasks such as taking meeting minutes, composing emails, and summarising documents.
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["Anthropic", "Go", "GenAI", "API", "OpenAI", "AI", "ML", "generative AI", "GAN", "R"]
["AI", "ML", "generative AI", "GenAI", "OpenAI", "Anthropic", "R", "Go", "API", "GAN"]
Shritama (she/her) is a technology journalist at AIM who is passionate to explore generative AI with a special focus on big techs, database, healthcare, DE&amp;I, hiring in tech and more.