AI is reshaping the consulting industry faster than the internet or remote work ever did. Some say the industry&#x27;s days are numbered. So why are Anthropic and OpenAI building PE-backed consulting firms of their own? And how will private equity firms and the companies they own feel the change?<br>We get into what AI is actually doing to the consulting industry, why it&#x27;s hitting faster than any tech shift before it, and how consulting firms are using AI to transform themselves to stay ahead of their clients. If you&#x27;re an investor, an operator, a consultant, or just trying to figure out where the AI transition leaves you, this episode separates the signal from the noise.<br>Joining Devin is Matt Umscheid, CEO of Investor Group Services, a consulting firm supporting hundreds of middle market private equity firms. Matt is a former consultant, operating partner, and three time PE-backed CEO so he&#x27;s seen the consulting model from every seat that matters.<br>For more information, visit their website (https://igsinsights.com/) or LinkedIn (https://www.linkedin.com/company/igsinsights/)

Will AI Kill Consulting? (w/ IGS CEO Matt Umscheid)

Private Equity FunCast

# Full Transcript

**Podcast:** Private Equity FunCast

## Participants

- **Jim Milbery** (None)
- **Devin Mathews** (None)
- **Matt Umscheid** (Investor Group Services)

## Transcript

You need your teams to be able to sort of do something that's achievable, right? Like if you leave them on the five-yard line with, you know, no pads on, they're going to get killed. Totally. I laughed at one week at Pop Warner. I got run over once when I wasn't paying attention, probably picking daisies. And I was like, that's it. Handed in my helmet. I'm like, I'm a lover, not a fighter, man. It's not venture capital. It's private equity.

It's the Private Equity FunCast. Pour yourself a drink and have a seat. Hey, everybody. Welcome back to the Private Equity FunCast. We have a good one for you today. We're going to talk about the state of the consulting industry, especially consulting into private equity. If you see one side of the trade is consulting over for $20 a month. You can just do all the due diligence you need without anybody's help. The other side is Anthropic and AI are throwing billions of dollars of building consulting firms

to drive humans into companies to make AI work. I've got a great guest. He's been a friend for 27 years, a three-time private equity-backed CEO. A year ago, he joined to become the CEO of Investor Group Services. IGS is what we call him around here. They're our go-to commercial diligence and go-to-market provider. We've worked with them on dozens of engagements. We're engaged with them on something right now.

So there's nobody else better to walk us through the current moment and what's happening. Matt Umscheid, the CEO of IGS. Thank you. Excited to be here. All right. So let's start just quick. Who are you? How'd you get here? What is IGS? Because you could explain it better than I can. Really appreciate the opportunity to sit down and talk with you about this stuff today. It's only been 27 years in the making, right? Right, right. Devin and I got to know each other at Tuck many years ago. My background is consulting.

I worked for Arthur D. Little and then Ellie Kay. In between, I spent time at Tuck where we got to know each other. I then moved to Parthenon Capital and worked on their operating team for nine years and then moved into operating roles. Various commercial leadership roles and then into the CEO role. IGS is the third private equity-backed company that I have led in the CEO role.

It's sort of an interesting experience to come full circle to have started my career as a consultant, carried the bag, done the work, and then been a buyer of the services in private equity for many years. That's where I actually got to know IGS originally.

And now to be a consumer of consulting as an operator and to have that put in sharp relief where I feel like consultants can bring value and where there's opportunity for IGS and where I think we can really differentiate ourselves. All right. Well, no business is being transforme...

Will AI Kill Consulting? (w/ IGS CEO Matt Umscheid)

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Will AI Kill Consulting? (w/ IGS CEO Matt Umscheid)

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.