Inside BCG's AI product assembly line: 'Every company has to become a tech company'

Boston Consulting Group (BCG) is making waves in the consulting world with its ambitious shift towards artificial intelligence. Scott Wilder, a partner based in Dallas, emphasizes that in today’s landscape, every business must embrace technology to thrive. Over the past 15 months, BCG has established an internal lab dedicated to research and development, marking a significant transition in how the firm operates. The advent of generative AI, particularly since the launch of ChatGPT by OpenAI in 2022, has compelled consulting firms like BCG to evolve from traditional advisory roles into active developers of AI tools. Wilder, who has a background in computer science, finds it fascinating to witness this transformation within a services-oriented firm. BCG's approach to AI innovation unfolds at three distinct levels. At the foundational data level, data engineers are harnessing proprietary information to enhance decision-making processes. Wilder notes that the firm is creating MCP servers and agents designed to efficiently extract and utilize data at optimal moments—a trend he believes will define the future of AI. The second layer involves consultants crafting specialized tools for client projects. Successful innovations from this layer are funneled back to the R&D team, which integrates these solutions into a centralized marketplace accessible to BCG’s consultants. At the top level, executives are focused on developing comprehensive tools, including Deckster, an advanced slideshow editor, and Ava, a multifaceted internal support tool. Additionally, they utilize GENE, a conversational AI designed for various internal initiatives. BCG's strategy includes a team of 'forward-deployed consultants,' inspired by the engineers from Palantir, who are tasked with creating reusable tools for clients. This hands-on approach allows for rapid innovation, with many ideas emerging directly from the front lines of client engagements. The firm has positioned itself as a leader in creating custom Generative Pre-trained Transformers (GPTs), reportedly developing around 36,000 such tools. The internal R&D team focuses on building knowledge graphs that connect and organize data from various sources, ensuring comprehensive insights are available for client projects. Before any new tool is launched, it undergoes rigorous testing by BCG’s red teaming group to identify potential security vulnerabilities, followed by a review process that includes legal and data protection assessments. Once cleared, these innovations are added to the firm's resource repository, overseen by an orchestration agent that helps consultants navigate the best available tools. Wilder highlights a grassroots approach to innovation at BCG, with about 80% of new GPTs originating from the front lines. The firm’s ‘enablement network’—comprising about a thousand employees across all departments—plays a critical role in fostering collaboration and sharing insights. As BCG continues to adapt, it is increasingly resembling a traditional product organization. With dedicated product teams and a User Experience Center of Excellence, BCG is committed to continuously improving its offerings based on frontline feedback, ensuring it remains at the forefront of AI-driven consulting.