The percentage of companies using external providers to implement AI is expected to more than double over the next six months, according to a U.S. government study on the use of AI in business.
The Census Bureau's Business Trends and Outlook Survey covers 1.2 million companies, divided into six groups of approximately 200,000 companies each. The bureau regularly surveys companies in each group, collecting data every two weeks. In March, the agency announced its first AI usage dataset, captured in a series of biweekly snapshots from September 2023 to February 2024. Approximately 164,500 US companies responded.
The study showed a 129% increase in companies planning to use a vendor or consulting service provider for AI projects in the next six months compared to the previous six months. . This projected increase represents an average across 17 industry sectors.
Consulting executives acknowledge rising demand
Industry executives said the survey results are consistent with what they're seeing in the market: rapidly growing demand among customers seeking help with generative AI and large-scale language models (LLM).
“I think it's at least double, and probably more,” said Scott Wheeler, AWS practice lead at Asperitas Consulting, referring to the demand for AI consulting services. “There’s a lot of attention around LLMs that are driving this.”
Wheeler said service providers will see opportunities in off-the-shelf products such as Microsoft Copilot. But he suggested that more profitable projects would involve customizing and tailoring LLMs with customer industry-specific data sets. For example, his Chicago-based cloud services company Asperitas consults with financial services clients on AI.
“The money will be made by helping them refine.” [generative AI] To get the incisive answers they want from an LLM,” Wheeler said.
Jared Burns, cloud data and machine learning architect at DoiT International, a Santa Clara, Calif.-based multicloud service provider, also foresees an increase in demand for AI consulting. This happens as customers move beyond the initial exploration of AI's potential business applications.
“The demand for AI services is increasing tremendously,” he said. “Customers used to need help coming up with AI use cases. Now they come to us with lots of ideas.”
These customers need help with use case validation, prioritization, and project scoping for minimum viable product (MVP) and proof-of-concept (PoC) projects, Burns said. He also added that he may need help implementing AI on a broader scale once the initial MVP or PoC shows value.
Asif Hasan, co-founder of Quantify, a digital engineering firm in Marlboro, Massachusetts, said the increase in demand for consulting suggested by census data is consistent with the growth rate his company is seeing in its opportunity funnel. Stated. The company works with customers on generative AI projects, from use case discovery to operational applications.
Hasan said companies will increasingly seek external expertise as they pursue applications that leverage AI to automate tasks, drive innovation, and “redefine the economics of business.” He said he was deaf.
Hidden industry growth
Industries that have shown the highest growth in the use of consulting services compared to prior plans are generally not associated with rapid AI adoption. Transportation and warehousing, construction, and wholesale trade are all expected to increase by more than 200%. Transportation will lead the way, with usage of external providers predicted to increase by 264%.
Hasan said Quantiphi is seeing a growing demand for AI services in transportation. Companies in this sector are looking to AI to analyze traffic patterns, reduce accidents and achieve environmental, social and governance goals, he noted. For example, Quantiphi introduced a predictive AI product for customers in the rail industry. The system classifies objects such as flags and signals along the railway, allowing locomotive drivers to more easily detect them and make faster and better safety decisions, Hasan said. Ta.
Meanwhile, in the construction industry, companies are turning to vendors and consultants for advice on AI technology and how to implement it, according to Vijay Sankaran, CTO of Johnson Controls, a smart building company with international headquarters in Cork, Ireland. It is said that there is Johnson Controls provides managed services for building automation systems and facilities. It will also be brought to market with channel partners.
Sankaran said customers in the construction industry are looking for AI to improve energy efficiency. He also cited the opportunity to incorporate AI into smart buildings, noting that planning smart buildings during design and construction is more efficient than retrofitting the technology.
However, the industries with the highest growth rates in the use of vendors or consulting services are not necessarily at the top of the list of markets in which consultants are busiest.
In his company's AI business book, Hasan said healthcare, financial services, manufacturing, public sector and education are among the most active industries. At DoiT, Burns said he is seeing high activity in AI among customers in industries such as SaaS and fintech.
John Moore is a TechTarget editorial writer, covering CIO roles, economic trends, and the IT services industry.
