Consulting in the age of AI

: the BTS case

Abstract

This dissertation analyzes how Artificial Intelligence (AI) challenges traditional business models in the consulting industry, using BTS as a Case Study. The firm, known for its human centric and customized services, faces strategic inflection points around pricing, organizational structure, and value proposition as AI transforms the consulting landscape. The Case explores internal and external tensions driven by AI adoption. Internally, BTS confronts the implications of increased efficiency on its pricing model and traditional pyramid structure. Externally, it must reassess its differentiation as AI democratizes knowledge and tools once exclusive to consulting. Evaluated strategic alternatives include value-based pricing, restructuring roles, and reinforcing its position as a transformation advisor. This study reveals key findings: (1) Adopting transformative technologies like AI can introduce significant operational and industry shifts, challenging even well-established consulting firms. (2) Continuously developing dynamic capabilities is crucial for maintaining competitiveness in the evolving consulting landscape. (3) Strategic initiatives focused on integrating cutting-edge technologies like AI can enhance a firm's value proposition, attract new clients, and potentially create new revenue streams. The Literature Review explores relevant strategic concepts, including disruptive innovation, business model innovation, and dynamic capabilities, to provide a theoretical framework for understanding these challenges and potential responses. The dissertation also includes a Teaching Note to help instructors guide classroom discussions around technological disruption, pricing strategies, organizational adaptation, and business model reassessment.

Date of Award	7 Jul 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Magalhães Guedes (Supervisor)