'Shark Tank' investor Kevin O'Leary says the companies he backs are skipping consultants and going straight to AI

Kevin O'Leary, the prominent investor from 'Shark Tank', has voiced strong opinions on the evolving business landscape, particularly regarding the role of consultants. Currently focused on launching a massive AI data center in Utah, O'Leary has observed a significant trend among the companies he invests in: they are increasingly opting for AI solutions instead of relying on traditional consulting firms. In a recent episode of 'The Founder's Mindset Podcast', O'Leary highlighted how businesses that once heavily relied on consultants for specialized tasks—such as optimizing retail distribution strategies—are now turning to AI tools. He pointed out that these firms are directing their internal teams to experiment with AI-driven solutions, effectively bypassing the need for external consultants. "This shift has been remarkable, only emerging in the last two years," he noted, emphasizing the rapid pace of this change. As AI continues to advance, consulting firms are also adapting to the new reality. Many have begun to develop their own AI tools and have ramped up hiring engineers to stay competitive. Despite the challenges posed by AI, major consulting firms have identified substantial opportunities in this space. For instance, McKinsey reports that around 40% of its projects are now AI-related, while BCG anticipates that 20% of its work will fall into this category by 2024. Accenture has also streamlined its services into a unit focused on AI, termed "reinvention services," to assist clients in adopting emerging technologies. While O'Leary acknowledges the potential for consulting firms to survive the AI transformation, he warns that a long tenure in consulting can be detrimental to career growth. He suggests that less than two years in the industry can provide valuable experience for young professionals, but extending beyond that could signal stagnation. O'Leary stated, "If I see a resume indicating someone has spent seven years at a consulting firm and aspires to be a CEO, I would likely dismiss it." Interestingly, he recognizes that not all successful executives share his views. For example, Sundar Pichai, CEO of Google, and Sheryl Sandberg, former COO of Meta, both started their careers at consulting firms. This commentary from O'Leary highlights the tension between traditional consulting roles and the burgeoning influence of AI in the business world.