The End Of The Analyst Firm As We Know It

Posted on January 5, 2025

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“The impact on traditional roles will be profound. Entry-level analysts will see their ranks reduced by 50-75% as AI takes over data crunching and problem structuring. Research teams are set to shrink by up to 95%, with AI generating faster, smarter insights for those who know the right questions to ask. Even design teams might face a 50% reduction as AI transforms how professional outputs are created.” – James O’Dowd (LinkedIn Post, January 3rd, 2025)

The A-Team has one role within a large consultancy: land a new account and move, leaving the B, C, D, and E Teams to oversee the implementation, which is why 80% of ALL initiatives, regardless of technology, have failed over the past several decades.

I have been talking about the transformation of the analyst-consulting industry for many years. One of the many reasons for their inability to deliver results is their hiring practices, which include scouting recent university graduates, e.g., degree shopping. The problem with this approach is that it is not an indicator or predictor of competency or that the needed experience and expertise will be developed to provide the insights that will lead to end-customer success.

The critical starting point is “knowing the right questions to ask.” For this, see the video below:

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