How NTT Data is Navigating the Generative AI Challenge

Management consulting is increasingly feeling the impact of generative AI. As these technologies evolve, tasks traditionally performed by consultants—like analyzing documents, conducting research, and writing reports—are now being handled by AI agents. This raises a critical question: if clients can automate these processes, do they still need human consultants? The urgency for consulting firms to adapt has never been greater, and NTT Data is a prime example of how to navigate this transformation.

David Pereira, head of generative AI for Europe and Latin America at NTT Data (https://www.nttdata.com/) , highlights the stakes involved. His firm estimates that generative AI could jeopardize 40% of its revenues, pushing them to rethink their business model. Pereira points out that this challenge also presents a unique opportunity for growth and innovation.

NTT Data has structured its response around four key work streams, starting with “talent and cultural transformation.” The firm is committed to training all employees on AI technologies and reconfiguring roles to leverage these tools effectively. This proactive approach ensures that the workforce is not only prepared for the changes but also empowered to use AI to enhance their skills.

The second work stream focuses on “value development,” which involves using generative AI directly for client projects. In the last fiscal year, NTT Data automated an impressive 2 million hours of software development, leading to a 2% increase in profit margins for IT services. However, this progress raises concerns about pricing models; clients sometimes expect discounts when they know AI is involved. NTT Data is tackling this by establishing value-based pricing arrangements, where compensation is tied to the achievement of specific client KPIs.

The third stream is NTT Data’s “productive model,” a tech platform designed for deploying generative AI solutions. Pereira emphasizes the importance of flexibility, ensuring that their platform can easily integrate various AI models from different vendors. This adaptability is crucial in a rapidly evolving tech landscape where being locked into a single vendor could hinder strategic decisions.

Lastly, the firm is infusing AI into its internal processes, automating tasks such as onboarding vendors and screening job applicants. Last year alone, NTT Data automated 54,000 hours of internal work, showcasing the potential for AI to enhance efficiency across all departments.

Despite the enthusiasm around AI, Pereira remains cautious about deploying AI agents in client-facing roles due to reliability concerns. He stresses the importance of maintaining the value of human consultants, as over-reliance on automation could undermine their role in the consulting process. The challenge for the industry lies in clearly defining the boundaries between service and software, as the distinction will be vital for the future of consulting firms.

Cited: https://fortune.com/2025/04/29/ntt-data-genai-head-david-pereira-says-ai-is-a-boon-to-consultants-but-also-a-potential-existential-threat