Consultancy firms have pumped a lot of money into frontier AI tools that have fundamentally changed tasks traditionally done by juniors. But the return on investment question lingers, writes Maria Ward-Brennan.

Model ML’s platform for the consultancy market has automated manual steps such as supporting research, presentation and Excel model creation, and reviewing client-facing materials.

They are the kind of roles traditionally done by a junior. But a growing number of consultants, known for their ranks of graduate staff are leaning on the platform, upending a strategy that has lasted decades.

In a recent case study with one of its clients, BDO, over the first eight weeks, the accounting firm’s deal teams asked more than 10,000 questions, analysed over 25,000 documents, and generated more than 14,000 AI review comments.

Raghav Sehgal, a former Bain executive and now Model ML’s general manager, explained that because consulting carries massive reputational risk once a client logo is attached, the role shifts, particularly for juniors, to rigorous double-checking, insight creation, and managing the AI’s output.

However, the biggest question in the industry, and in others, is the real ROI of these expensive technology tools. The Big Four giants, Deloitte, KPMG, EY, and PwC, alone, have collectively committed several million pounds towards AI investment.

“ROI ultimately is a function of two inputs,” he said. “One is the tool itself … Does it fundamentally deliver and do what it’s supposed to do … and two, it’s change management: how do you reorganise yourself as a company around these tools?”

Milan Malik, former McKinsey and head of consulting at Model ML, added: “ROI [return on investment] is a function of capability and adoption. If the platform performs at the frontier, the only thing left to solve is adoption, and that’s a change management question.”

Former consultant-turned-AI specialist Sehgal said “it is an exciting time” for the sector as “the way you work with your clients internally is changing”.

We’re seeing some creative approaches to this with our clients,” Malik continued, adding that one firm has placed its AI model on an internal learning platform, rewarding staff with learning credits if they upskill and share wins with colleagues. Another publishes a weekly leaderboard of its top users across every region, which turns them “into AI champions and creates a competitive spirit that drives adoption and, ultimately, ROI.”

From finance to the Big Four

Model ML, founded by brothers Chaz Englander and Arnie Englander, started in the financial sector but has since evolved to the world of professional services. Among its roster of clients are PwC, Deloitte for specialist M&A agents, and, most recently, a partnership with BDO.

The AI platform, co-headquartered in London and New York, crossed the $1bn (£748m) valuation mark and raised more than $100m in its first 18 months.

Like the consultancy sector, the platform takes a page from their book and goes into clients’ offices to ‘understand the business as a whole’.

“We’re not just a vendor, but we’re really an extension of their team,” Sehgal said. He also noted that, for such a risk-averse industry as consultancy, “like in any relationship, whether that’s personal or professional, trust is earned over time.”