• Boston Consulting Group has launched an internal research and development lab approximately 15 months ago to develop AI-based technology.
  • The firm operates on a bottom-up model where frontline consultants generate innovations, creating about 36,000 custom GPTs globally.
  • BCG's AI innovation occurs at three levels: data engineering, consultant-built tools for clients, and executive-developed firm-wide tools like Deckster and Ava.
  • The firm employs 'forward-deployed consultants' who build tools directly for clients using external platforms and internal resources.

Quick Summary

Boston Consulting Group has launched an internal research and development lab to develop AI-based technology for facilitating its work. The firm operates on a bottom-up model where frontline consultants generate innovations, creating approximately 36,000 custom GPTs globally.

BCG's AI innovation occurs at three distinct levels: data engineering driven by data engineers, a middle layer where consultants build tools for client projects, and a top layer of executives developing firm-wide tools. The firm employs 'forward-deployed consultants' who build tools directly for clients using a mix of external coding platforms and internal resources, including OpenAI's ChatGPT.

New tools undergo rigorous screening by red teams for security vulnerabilities, data protection reviews, legal checks, and information security assessments before entering a central marketplace. BCG maintains an enablement network of approximately 1,000 employees from every department who train the firm on AI and serve as intelligence gatherers, meeting monthly to share insights.

Strategic Shift to Technology

Scott Wilder, a Dallas-based partner at the firm, stated that Boston Consulting Group is "all in" on creating AI tools. Approximately 15 months ago, the firm launched an internal research and development lab as one of several ways it develops new AI-based technology. Wilder emphasized that "Every company has to become a tech company," noting that "BCG is no exception."

The consulting industry has undergone a significant transformation since OpenAI unveiled ChatGPT in 2022. Consulting firms, once known for strategy and advisory services, are shifting toward building, implementing, and maintaining AI tools for clients. Wilder, who studied computer science at the University of Texas - Austin, described it as fascinating to see a services firm shift this way.

BCG invests heavily in developing new AI-based tools. Consultants at the firm have built tens of thousands of custom AI agents for client projects. The firm bills itself as the No. 1 creator of custom GPTs globally.

When it comes to creating AI tools, Boston Consulting Group is "all in"
Scott Wilder, Dallas-based partner at BCG

Three-Level Innovation Structure

Generative AI innovation at BCG happens at three levels according to Wilder:

Data Level: Driven by data engineers, this phase leverages internal proprietary data. BCG builds MCP servers and agents on top of internal and selected public data sources so AI tools can automatically pull the right information at the right time. This represents a shift where model intelligence is increasingly tied to knowing which data to use and when.

Middle Layer: Innovation comes from consultants building tools and agents for client projects. When a tool proves successful, it returns to the R&D team, which integrates it into a central marketplace for the rest of the firm to use.

Top Layer: Executives develop firm-wide tools. These include:

  • Deckster - a slideshow editor trained on 800 to 900 slide templates that helps consultants quickly create presentations
  • Ava - an internal help tool for IT issues, HR questions, and other internal requests
  • GENE - a conversational chatbot used for presentations, podcasts, and publicity initiatives

The firm has approximately seven or eight tools at this top level.

Forward-Deployed Consultants

BCG employs a team of forward-deployed consultants, a role inspired by forward-deployed engineers popularized by Palantir. These consultants are vibe-coding and building tools for clients. Wilder explained the approach: "We put our best of the best globally on cases, and they build reusable things. That then goes back to the R&D team."

Innovation happens at the "rock face" on case teams rather than centrally. These consultants rely on a mix of external coding platforms and internal resources to build tools, including OpenAI's ChatGPT.

The firm's new R&D team works on disseminating these innovations internally. When the R&D team launched about 15 months ago, its mandate was to build knowledge graphs from the firm's slide decks, transcripts, and other internal documents. Knowledge graphs organize and connect data across multiple sources, extracting not just words but also concepts and sentiments from meeting transcripts.

Quality Control and Product Organization

BCG has established a comprehensive review process for new tools. Wilder stated that new tools are screened by BCG's red teaming team, which simulates adversarial exercises to address security vulnerabilities. Tools also undergo review by the data protection office to ensure compliance with data privacy laws, legal review, and information security assessment.

Once approved, tools pass to the marketplace team, which integrates them into a central repository. An orchestration agent helps people understand the best tools and data to use within BCG.

The firm prides itself on its bottom-up approach to innovation. Approximately 80% of custom GPTs come from the front line. New ideas also surface through the "enablement network," a team of about 1,000 people from every department including human resources and legal. This team functions as learning and development coordinators, training the firm on AI, and serves as "eyes and ears," meeting monthly to share ideas and insights.

BCG now operates much like a traditional product organization. Between dedicated product teams and a UX Center of Excellence, which constantly evaluates what works and identifies which agents need to be built through frontline user research, insights feed back to product owners who funnel them into a centralized crowdsourcing pipeline. As Wilder summarized, "we're doing all the things you'd expect a product organization to do."

""Every company has to become a tech company. BCG is no exception.""

Scott Wilder, Dallas-based partner at BCG

""as a computer scientist, it's fascinating to see a services firm shift this way.""

Scott Wilder, Dallas-based partner at BCG

""We put our best of the best globally on cases, and they build reusable things. That then goes back to the R&D team. So we're seeing a lot of innovation happen from that. A lot of it has to happen at the rock face, on the case teams, versus centrally.""

Scott Wilder, Dallas-based partner at BCG

""Probably 80% of our custom GPTs come from the front line.""

Scott Wilder, Dallas-based partner at BCG

""There's actually an agent. This orchestration agent, basically, helps people understand what are the best tools and data within BCG to use.""

Scott Wilder, Dallas-based partner at BCG

""In short, we're doing all the things you'd expect a product organization to do.""

Scott Wilder, Dallas-based partner at BCG

Frequently Asked Questions

How does BCG's bottom-up AI innovation model work?

BCG sources AI innovations from frontline consultants who build tools for client projects. When successful, these tools go to the R&D team for integration into a central marketplace. Approximately 80% of custom GPTs originate from the front line.

What is the role of forward-deployed consultants at BCG?

Forward-deployed consultants are BCG's best talent assigned to client cases who build reusable tools using external coding platforms and internal resources. They operate at the 'rock face' of client work, generating innovations that feed back to the R&D team.

What security measures does BCG apply to new AI tools?

New tools undergo screening by a red teaming team for security vulnerabilities, review by the data protection office for privacy compliance, legal review, and information security assessment before being integrated into the firm's marketplace.