AI's Accelerating Impact on Consulting Engineering (1/2)

Happy Friday,

Recent developments at OpenAI and other leading AI labs suggest a faster timeline for AI's transformation of professional services.

What this might mean for the consulting industry:

Near-term impacts (1-3 years): Engineering firms will initially see AI augmenting rather than replacing their work. AI tools will handle routine calculations, preliminary designs, drafting reports, and basic documentation, accelerating ‘low complexity’ work.

Medium-Term (2-5 years): The traditional ‘billable hours’ model will likely face significant pressure. When AI can complete in minutes what previously took hours or days, firms will need to transition to value-based pricing - selling outcomes rather than hours. But that will be easier to say than do if price remains a meaningful factor in consultant selection. Market competition could convert most of AI's efficiency gains into client savings.

Key areas of transformation:

• Design optimization: AI will be able to generate and evaluate thousands of design alternatives rapidly
• Code compliance: Automated checking against building codes and standards
• Documentation: Automated generation of technical drawings and reports
• Project management: AI-assisted scheduling and resource allocation

Areas of enduring human value:

1. Complex problem framing and stakeholder management
2. Integration of competing priorities (technical, economic, social, environmental)
3. Professional liability and risk management
4. Creative solutions to novel challenges
5. Ethical decision-making and judgment calls

The firms most at risk are those whose value proposition is primarily built around routine technical work. The firms most likely to thrive are those that can:

• Position themselves as strategic advisors rather than technical implementers
• Develop expertise in human-AI collaboration
• Focus on complex, multidisciplinary projects
• Build stronger client relationships based on trust and judgment

Next week, I'll delve into what you can and should do right now to prepare. It's all good stuff.

Wild times...Have a great weekend,

Dave

Feedback and blowback are always welcome: dave@goodnewsfriday.com

All past topics remain available @ goodnewsfriday.com

Speed assist and blunder avoidance with the help of Grammarly