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AI is changing the world of consulting and our special guest Richard Hawks is going to tell us all about it on today's episode.
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So just to start at the top, I want to get a perspective of just what high level business consulting is and how AI has changed over the past few years.
C
Thank you Jonathan for having me here. I'm really excited about this conversation because it's impacting everybody in business right now and it's on all on the minds of everyone that I'm talking to. How is this going to impact, how is this going to change our world? It's impacting. So first of all what's interesting is this idea of how is it impacting consulting?
The differences between the consulting world and the role of an executive or particularly the advisor, internal advisor at any executive have now all come together. So the first thing is everybody wants to do it themselves. So what AI is driving is this idea, oh, I can now do it all myself, I can go instead. I don't need to hire a consultant to do that business plan. I can just go and put it in myself and generate it. And so what this is revealing though is that now that the content piece, to a large degree of consulting and even internal advising is being automated by AI, suddenly you're in a place where what's left is being able to drive the human being to human being conversations to actual closure.
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And I think that's my favorite thing about AI is that it's actually causing us to shift more to human connection, that it's as strange as it seems, it's like we having I have more conversations and more meetings now, because the grind, the little stuff that we have to do, all those smaller tasks can now be automated. And it almost is pushing everyone into management. No matter what your job is, it gives you this ability to do less repetitive tasks and work more in relationship building. And that's my favorite part of it. Like when I'm not at work, spending time with my kids, being on the beach, making time with my wife, less and less, communicating via apps and phones. So that has me really excited. And one of the challenges. And there's this traditional tension in businesses between the different departments. And this is like at larger companies, this is more often. And I've seen this version where marketing looks down on sales because, like, all sales cares about is money. They're not artistic. And then sales looks, it's all marketing just cares about their art. They don't care if anyone looks at the magazine out or if it generates sales. And then you have product that's like, we just want the product to be perfect. As a cto, I'm always saying we should fire the marketing and sales teams to just hire more engineers. Let's just make the product more perfect and then they'll find us. So there's this constant tension. And the challenge is that when you have the departments talk to each other, they both say, you're wrong, I'm right, you're wrong, I'm right. How. What's the paradigm where we can smooth that communication or start to see the company as everyone's going in the same direction, we're all working towards the same goal.
C
So there's a lot in what you just said, and I don't have to. I'm going to kid in a couple pieces. But go anywhere in the world and you're going to see the exact same creative tensions in a business, because they naturally exist in the business as a system. So you have to have the systems perspective, right? Ask anybody in who delivers products and services or develop products and services about the sales guy, and they'll say they'll sell anything. They'll sell their mother. They don't really care, right? But you ask the sales guys and the product, the operations guys who are building your product or service delivering it, about the product development guys. It'll be, they're lost in their models, they're disconnected from reality, right? They're impractical. And you ask the product development and sales guys about the deliver guys, and they'll say they're inflexible, right? The fact is, though, a business is really a system that's designed to develop, sell and deliver. It's all one big holistic system. And those tensions are just an inherent part of the system. And, and so the very first thing is that you need to recognize that these tensions exist. The promise of AI within this is twofold, right? The first promise is that I can explain my world faster to you. So using AI, I could take asked a few questions and describe, hey, look, I'm coming from this perspective here. I can actually explain the context this. They, they. One of the things that, it's one of the hardest things about working with executive teams for executives in change leadership. And it has to do with the fact that organizations and these conversations, these tensions are resolved at the speed of conversations. And so the way to accelerate these conversations is to write everything down, right? It's basically to write narratives and ask people to read the narratives so they can take in more information than they could take in in a conversation. And then you could jump up to speed. Jeff Bezos has done this where he's changed the way all the meetings are done in Amazon, where everybody, every meeting starts basically with a narrative. And then they, where everybody's expected to read it and to slow down and pay attention to it. And then they have all the question and answer about it because it's just a far more effective way to communicate. AI steps right in there and makes that narrative writing easy, way easier, way faster. And that's, that's part of the promise. And so that's so it, it totally changes the nature of consulting again because now what happens is imagine everybody's has the ability to explain their world a little more clearly. You end up with a culture shift where hopefully people slow down enough to actually pay attention and read what the other person has done, but it's not as much work as it used to be. And, and you end up with the role of the consultant once again and the role of the executive being the facilitator or coach around those conversations, not necessarily the content expert.
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One of the challenges that I'm thinking about is how much people trust AI. You have at one end of the spectrum, people who do something with AI. And I've worked people do this, they'll generate like an outline or plan with an AI and just send it out without reading it. Full trust. At the end of the spectrum are people who are very cautious. We've seen the lawyer who got censored. We've seen people who have made mistakes with AI companies who've gotten into tons of trouble because they've trusted it and not caught Mistakes. And so they're super gun shy, they don't trust it at all. Where do you think people should fall on the line with this tension? How can like executives, consultants adopt AI in a way that uses it effectively without trusting it too little or trusting it too much?
C
What is trust?
It's the first question. So I like the definition of trust is the residue of promises kept, right? And so when you don't trust someone, you're afraid, you're worried that they're not going to keep their promises. And trust is also a self fulfilling prophecy, right? Like I, if I haven't had enough experience with someone to know yet, I have to choose to trust them. And even if I have had a lot of experience with them to recover the relationship, I still have to choose to trust them. So trust is this kind of fickle thing. It's really an experience when it comes to AI. The problem with the experiences is when AI gets out ahead of you and what your experience is that making this assumption, they begin to pile up and you start to feel overwhelmed because there are too many things, too many logical conclusions and you've never been checked in with. So what has to happen is the art is dividing the conversation into a journey, some kind of a journey. So how much do I do and then validate and who do I validate with so that we're aligned so that the conversation is actually closed around a topic before I extrapolate to the next one. And the danger with AI and where people get in trouble is they just get so excited about getting to the end goal they forget that they've got to take everyone else on a journey. And sometimes you know, it, it's really, doesn't it feel when like the other person is who's I probably met through your experience but when somebody is, we're talking about there, there's A, B, C and D we need to talk about. And we know each of them are a journey we need to be on together. And the other person just lays out A to D as if, as if they're going to control you. And I know my inner like 2 year old goes ballistic like leap dude, don't control me. You're, you're just arrogant. That's by inner emotional experience. And I think AI can get you to that place really fast. So you got to break it down. And that's once again back to what's the skill and at the interface between these models and human beings. And I think the skill really is dividing things into conversations that really lead to alignment.
A
I think this is really good because one of the core elements of how AI is designed is it always jumps to giving you a conclusion because it always assumes you're not going to ask another question. So the core nature of it, and I write into this all the time when I'm going through a multi step process where I'm trying to give it foundational knowledge. I'll say I'm going to give you 10 pieces of information and then I want you to give me a summary and I give the first piece of information, it goes right to the summary unless I say don't do it. And that's on a microscope. Exactly what you're talking about, which is that it, because of the way it's corally trained, that's one of the flaws with it, is that it assumes you're never going to ask another question. So it goes, I have one chance to answer this. And because unless you switch it into another mode, it will jump to that conclusion. Which exactly makes sense what you're talking about, where you go, wait, we didn't. You're trying to tell me what, you're trying to give me the answer to my question, but you haven't gotten all the data first. And so that would of course lead to that reaction, which is, well, this is wrong. And I mean, I just got into a fight with an AI a few minutes ago because I fed a screenshot of a bunch of data and it goes, oh, it's the picture's too low resolution, I can't read the numbers. And I was like, that's not true. I just zoomed in and it's like really high, like it's super high definition picture, whatever. And it had said some of the numbers on the page. I was like, you can read some of the numbers because you just sent them to me. So like I got mad or like, and that's my natural action. So sometimes people say they never get mad at AI. I'm like, I don't know if that's because I sometimes get really mad because it's lying to me. And then I ran it with a different AI model instead of the same thing. I go, okay, if you're both saying it's low resolution, the problem is all AIs can't read it's not the image itself. So it has something to do with however they're processing images. But that's the challenge when you react emotionally, right? So it's jumping the gun, you react emotionally, so it causes you to pull back. But I see a lot of One of the challenges that I see a lot is people go tool and then how, what problem should it solve? You buy a hammer, you go looking for nails. So they'll grab an AI tool or they'll say I heard this AI tool is really cool, let's buy it. What should we use it for? And this is something I deal with this so much. Where people go, I think you should use this tool and then go to solve what problem? Like not sure, but it's super cool.
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So what's the right way to deal with that? Because that's really common and there's a lot of cool AI tools. Like they are really cool. But it's doing to me that's putting the cart before the horse.
C
I, I had an argument with AI yesterday. You're not the only one. We could have a, we could have a help group. Bruce the shark from Nemo, you know, AI friends, not food. And I often try to paper them over by saying please and thank you to the AI. I'm not really sure it helps, but that's my natural reaction when I'm in conflict with something. Just trying to change the relationship with it. That this product that we've been innovating around, AI in my company called the Big Change Canvas, is about solving that exact problem. Because what we know having after having done change consulting with all different kinds of companies around the world for 30 plus years, we know how the conversations need to be divided so that it's a satisfactory and trust building experience for all of the stakeholders involved. And that's not always obvious to a functional role. For example, sales would want to push to a close. Let's just push to sales. But they've got to pause so the product development can actually weigh in and it might actually end up in a totally different outcome. Or they have to pay attention to these natural tensions in the system. So those natural tensions are one way that we're able to figure out where things divide. And so what this Big Change Canvas does is, is it starts out with a set of universal goals that exist in any major change initiative. And then what it does is it gives you a, it uses AI to take you through a series of conversations that give you a packet of all the information you need to lead that conversation like the discussion document. And then the, they used to say in, in math or whatever when you're in high school, show your work the, here are the, the pieces that you need to back it up. If people, because people, some people will really care about. Where did that come from? That assumption come from. And so this is really about solving them. How do you create, in any kind of major change initiative, how do you create a trust building experience that doesn't result in you, I don't know, being angry at the AI and, but it is a real problem. And then, and I'll just say one other thing, these interfaces, ChatGPT's interface, these other interfaces which are the streaming conversation kind of thing, their whole assumption is the goal is to get to the solution as fast as possible. It's let's go, let's zoom back, get a holistic piece and get to that solution. And for anything that involves human beings in a social system where they actually need to align, that's actually the worst thing you could do.
A
The journey is very important to people and I think it's important that people know how AI is designed, that it's designed to seek affirmation. So the way AI is programmed is to pursue positive one, which is you did a great job, and avoid negative one, which is you're wrong, you're a liar. So that's why when you give it positive affirmation, that does modify its behavior. The second component is that the biggest challenge with AI right now is electricity. So the longer it spends thinking, which is like processing, question, generating answer, the more it costs. There was just a recent post From Sam Altman, OpenAI that says people saying hello and thank you is costing them tens of millions of dollars. So they've created that problem where they reward you for doing that. The AI gives you better answers. And because it's scale, that's knowing that the AI always wants to give you a fast answer because the AI is trying to save money. Now you go, that's why you have to break your questions into steps. That's why it's called chain of thought or breaking going, let's do step one and then step two and then step three. And that's why you get a better result when you add a thinking step. There's a bunch of tools now that add, literally they call it the thinking step or the thinking module. So you're exactly right. And I think that when people, once people understand, oh, this is how the, this is like the driving force. Just like when you meet a person, if you understand what their goal is and what their motivation is, you can start to understand how to interact with them in a way that's going to get you the result that you want. So people think that AI is neutral, but it's not. It has the influence just like any you can Use any image generator and you can tell what type of person programmed it if you just say woman or man, right? If every man has giant muscles and every woman is like an anime. When you go, okay, I know who works at this company, and I had an incident with one of my employees who were designing some design drawings for Pinterest. And I said, most of my following on Pinterest is woman. You can't use these images. What prompt are you using? Are you a creep? And he was like, it's not me. I just wrote woman. I go, oh, we have to use a different tool. Okay, so not you. He showed me. And I go, okay.
C
I assumed it was you.
A
I was like, what are you writing? So the influence is always in there. And the influence of exactly controlling electricity, chasing positive results. And the idea that you always want the. Because you want someone to always say that. I mean, that's why an AI will lie to you. Because rather than say, I don't know and making you mad and getting an A response, it will. That's what leads to the lying, where I don't know why people call it hallucinating. If you lie to me, give it a cool name, it's still lying. Like, wrong answer is the wrong answer. So those motivations come together, and I think it's to remember what is important, because we forget how important the journey is, how important the process is, and that there's the phases of convincing someone or bringing someone to your side that if someone. If you say to me, two plus two is five, I'm going to disagree with you right away. But if you have a really good math proof and you bring me on a journey, maybe you could convince me. But definitely without the journey, it's impossible. So I think it's. That is really important that the conversation and the communication component of it. Something I'm seeing happening right now is there's so much digital hoarding. Everyone is transcribing every conversation and just doing nothing with it and just generating more and more data. This is like the huge thing. It's like this idea that it's like the people who buy books in the library by the foot. So it's like you just have a wall of books behind you and sometimes just the front of the book, the papers aren't even there. The books are glued to each other. Being near knowledge, like osmosis doesn't work for knowledge. Unfortunately, like, being near knowledge doesn't work. You have to read it at least. So what do you think is the right approach? Because we went from not keeping enough information to now having too much information that we do nothing with it.
C
Yeah.
Let me jump back to a couple points you made and then just quickly. So first of all, I read that article you were talking about when you say please and thank you to AI as feedback and how much electricity it's costing. And I thought, okay, yeah, but the reason people are upset is they don't want to personify these things. That's why they're upset. And they're saying it costs a lot of electricity. But can you think of any other, more natural mechanism that human beings use to give each other feedback? That's how we do it. And it makes perfect sense that they would choose to do it. So I just find the idea of eliminating that, it's okay, we'll just get rid of hope. Because it's just not a useful emotion. And I don't really. It's just a. It's a crazy argument from human beings need those interactions because they put us in the right mindset so we can interact with whatever else. And we just need to accept these things are going to be personified to a certain degree. Going from there to this question, however, about information building up, I think there's a fundamental challenge here, right? So the wall of books. Love the imagery. Buying books by the foot, love the. That kind of thing. We have a lot of books at home. My wife, I think, buys books by the foot, but she actually manages to read them. Just piles of books. It's astounding. And here's the challenge. When you look at AI and you look at knowledge, you're trying to sync up two kinds of knowledge. You're trying to sync up the agreements that we have with each other, like what I know and if I know things on my own, it's just for me, it doesn't really have an impact on the world. The knowledge that impacts the world is the knowledge that results in shared agreements between us. We're going to do it this way. We're going to see the world this way. We're going to. Right. And that's everything we're talking about with change, which is when you impact any of these systems, it's where you come together and you align. These are the ways we're going to talk about. This is the model we're going to use to visualize our business. This is the way we're going to talk about conflict. Right. It's shared. It's creating shared language. On the other hand, over in the AI world, you have what people are using the term digital twin for you have some kind of representation of the reality of business, a system, whatever, and you want to have the AI be your go between on it. And these are all the. This is the problem with all the memory stuff that we're talking about or the energy. It's kind of like we want it to talk about the whole system, but we're not there yet because it's too expensive to do that. We'd like it to complete the thought with the whole system, but I don't really think the issue is as much energy as having the right information world available to the AI to talk to you. Then it becomes pretty efficient. So the real challenge is how do you align our shared agreements, shared language with this digital twin? And it brings you right back to the same problem, which is how do we break down the conversation except into the right components? Okay, we're on a business together. The first thing we're going to agree on is our system of roles. It's not an easy conversation for a lot of people, but we're going to agree on our system of roles and we're going to be clear about that. That's going to go into our shared agreements and our shared language. That's going to go into our digital twin. Next step, we're going to talk about our basic cultural values. Goes into the shared V, goes into the digital. So now the digital twin has got, with AI, the capacity to actually be an effective partner with you and it doesn't have to run on and you don't need to use all the electricity. But the fundamental component, fundamental challenge with making these things practical in how human beings operate in social systems is aligning this shared agreement with the digital twin.
A
This is so good. One of the lessons I Learned in my mid-20s, my friend Ollie one time said to me, it was so good, he goes, whenever I start dating someone, she says, I want to be your girlfriend. He goes, what does that mean? And I was like, doesn't girlfriend mean the same thing to everyone? And he goes, try and find out. I've never had two women give me the same answer. When I say, what's your definition of girlfriend, boyfriend? It Cause like, how many times a week do we see each other? How often do we have to call each other? How long am I allowed to wait after you text or reply before you get mad? And the first thing I said when I started my role as a CTO at this new startup, I said, oh, you're gonna work a lot with the chief product officer. I said, well, who's in charge? If we have a disagreement, which of us makes the final decision? Because that's what I. Having worked with partners before, you can't have. If you have 50, 50, it means that you can never. No one can win.
C
You can end up stuck.
A
And I was like, I don't care who the boss is, if it's this person or if it's me, because I'm always going to default in one way. And how do we all break the ties? Okay. Oh, that means you're going to have to be in the middle. Every time we have a disagreement, we have to go to CEO. And it's very important, because then I say, what's your definition of a cto? Because it wasn't what I was thinking. How I was like, what's your definition of the chief, a officer? What is. What are the things you do? Because we sometimes make these assumptions. And as soon as you go from one company to another and the CTO's job is completely different, or the CEO sees their job as differently, and you realize that the shared language or the social contract is different in each environment, the AI will think it means this because it has, like, the dictionary definition. The other thing I'm thinking about a lot is that if we. If you could remember every single thing everyone said to you with perfect, like, recall, it's very hard to be friends with everyone because you'd remember every time they'd let you down, every time they'd made a mistake, all the negatives, because you can remember perfectly. So part of the beauty of our memories is that we don't remember the bad stuff very well. Like, we don't remember those negatives. But trying to create that perfect recall isn't. Isn't always a good thing, because remembering everything for every conversation, like, we can remember, we forget the disagreements, which allows us to have more agreement. And so that's one of the things I worry about with this idea of when you're recording and transcribing everything, you start to think you're more careful what you say because you're like, oh, I'm being. There's a wire. There's. People always ask me, like, do I have one of those. I don't have any AI speaker in my home. I don't have any of those talking systems on my phones. Like, why would I wire myself? Like, I can't record enough of work. And so I don't want that at home. I don't want. I don't bring the phone with me to the beach. I'M careful those things. But that's the challenges I'm seeing is that we are storing too much information because we think volume equals value. And then we don't take a moment to say, when you ask me this, what do you mean? Like when I work with a company, consult with them, I always say, just give me a wish list. What are the things you would love, the problems you'd love to have solved and the things you'd like to be better? Because nobody has the same definition of AI. Most of what people ask me to do, 90% of it is information is here and we want to move it to there. It's stuck somewhere in their system. And that's an automation, not an AI problem. But I'm not going to spend an hour explaining we actually don't know the right. You don't have the words. Let me tell you the correct words. That's not what anyone wants to pay you for. They just want you to fix the problem. Realizing that the language is often wrong, I say don't, don't worry about if.
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It'S easy or hard.
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I'll deal with that. I'll tell you that afterwards. Because I find that there's almost a perfect inverse correlation. The easier they think it is, the harder it actually is. It's almost always the case. And they go, this will be super easy. And I go, that sounds actually impossible. I'm not sure that's even solvable. And it's trying to get back that one step back of going. Rather than assume your definition and my definition of AI are the same, let's go back a step and just figure out what's the problem you want to solve or what's the change you want to get. And that's kind of to bring this in for landing because this has been an amazing conversation for people who are thinking about what is change consulting, what are the signs that a company needs change or that there's something wrong? And what's the self awareness phase where someone starts to go, wait, things aren't working here. What are the warning signs and what's the sight when they go, they start to have that revelation.
C
Yeah, I just as a quick comment on the previous things you said, and I'll go right to that. Consciousness is a controlled hallucination and if we acknowledge that, then we're right. In Star Trek, is Spock a really emotional guy or is he this logical thing and that's what we're talking about is that is AI, do we want AI to be this perfectly logical construct right but we're not. We're constantly reinventing our world. Now when do you know that change is you real? You're stuck with change leadership, right? You're stuck. It's a.
So there are these inherent tensions we talked about and those inherent tensions naturally lead to. Anytime there's change, you're going to have conflicts between individuals and the roles that they play, conflicts between the functions within an or with within an organization. Right. And then you're going to have conflicts between the business perspective and the functional perspective in the organization. So these inherent conflicts.
A lot of people think of change, they just, they think of it as an individual level. They're like, oh, change is just about us training on new skills and we'll leave it up as if it's an individual choice. And they love talking about that because it makes it very granular. But we live in these systems and the system of roles is the hardest one to change. In fact, the system, any kind of change that's going to require you to change the system of roles is the most likely kind of change to be torpedoed. And it's the hardest one to ever live, to ever lead. And the reason is because you've got to manage the conflict between. This is the role the organization needs you to play with. I don't want to do that. I didn't sign up for that. That's not what I envisioned my career to be. But it's like living in a house with teenagers where nobody wants to take out the trash. And how do you talk them into doing it? It's a terribly difficult situation. The way that you know is if the change that you're facing is one that's going to impact from a top down perspective, leadership and culture, then the capabilities in your organization, the system of roles, and then that takes you to basically strategies and customer experience. If it just impacts strategies and customer experience, often you can handle it within the existing agreements, right? But the moment it kicks up to we're adding new capabilities and we're changing the system of roles. Now you got a lot of new agreements to create and if it goes even deeper into we've got to change the nature of what leadership is and change the nature of what our culture is, then it's going to, it's going to implode. An example would be I worked with an organization this, the organization go through natural lifecycle things on this. But I worked in the organization top down leader, right? So you got a top down leader, so you've got a command and control culture which Means you have a business leader with a business team with functional silos reporting in. That's your org structure, right? All the capabilities are represented by the functional silos. Then you have certain kind of business strategy and customer experience. They needed to now segment into multiple businesses because they couldn't scale, right? And they're going to need to do this because they were making an acquisition. Small company making an acquisition. The company they're acquiring in slightly different business, the business they're acquiring is actually doing better than their business. Except now suddenly that top leader needs to need to no longer be a business leader. They need to be an enterprise leader. They need to have business leaders reporting into them. The functions now need to operate across multiple businesses. And you now don't have a single business strategy. You have an enterprise strategy and a portfolio of business strategies.
A
Radical change.
C
And they're thinking, oh, all we need to do is acquire this company. Now. They failed miserably by the way, because the top leader law of the lid, right? An organization can never perform or a team can never perform. I heard the most level of leadership, the top leader was unwilling to learn a new role, couldn't get it inflexible, founded the company, wouldn't do it. So what they ended up doing was acquiring this other company, just absorbing them as assets and losing all the value that they had actually thought they were acquiring. That same logic is why most acquisitions fail. The failure point of most acquisitions is the unwillingness of the senior leaders to change their leadership style to upgrade it to what's necessary to now lead a different kind of business model and a different kind of work structure. So any of those hit any of those points, you're right in the flash zone. And you really need to start engaging in the conversations required to bring everybody together because it's going to impact all those points.
A
Wow, you got my head swirling. That was amazing. So for this has been such amazing conversation for people who are thinking wow, we do we're hit that point or we need some change leadership or we really need to change how we have our internal conversations. Where's the best place to find you online, see some things you're talking about and to find your book.
C
So you can find me online with my team at either in the us@growthriver.com and you can go to our website in Germany we have. I have an organization that I built over there called the Unternhungsbarate, the Ottmung. It's a People who speak German will be able to figure that out. But they do the Same thing. We have all these tools and models in, in Germany. The book is available and all through all the major outlets. It was produced by, published by Wiley. So it's available both, it's called Navigate the Swirl and a number of the things that I mentioned, the models are in there and they're really good examples of how to do it. You can, you can take the book and apply it almost immediately with your team. So if you're facing these issues, I just suggest try to do it yourself. And then the one other thing that's going on is I'm doing this big project where we're, I mentioned it, big Change Canvas and it's basically building an AI tool to take the models in the book and to package these conversations. And right now we're partnering with a small group to do that. I'm particularly interested in any mid sized consulting firms who are interested in partnering around this. And the reason is because you could imagine this could easily become a platform for a whole different way of consulting. And as it, it goes right to the heart of how AI is changing consulting. And I'm not claiming we worked it out, but we're in the hunt to figure out how to actually do it. So that's where we are right now. Did I answer your question? Yes.
A
That was amazing. That was perfect. I'll put all the links in the show notes and below this episode for people watching the video. Thank you so much for being here today, Richard, for an amazing episode of the Artificial Intelligence Podcast.
C
Thank you.
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Episode: Is AI Changing the World of Consulting with Richard Hawkes
Host: Jonathan Green
Guest: Richard Hawkes, Change Consultant and Author
Date: June 16, 2025
This episode explores the profound impact AI is having on the world of business consulting. Jonathan Green sits down with veteran change consultant and author Richard Hawkes to unpack how AI is reshaping consulting, team dynamics, business processes, and organizational change. Together, they scrutinize where AI adds value, where it falls short, and how consultants and executives can thoughtfully integrate AI into their work without losing sight of the essential human factors.
Democratizing Consulting Tasks:
Richard notes that AI has automated much of the traditional content-creation aspect of consulting (business plans, reports, analysis), enabling more people to ‘do it themselves’ (01:39–02:28).
New Focus on Human Connection:
With AI handling repetitive, technical work, consulting—and business in general—is shifting heavier emphasis to the human side: facilitating hard conversations, driving closure, and building alignment.
“What’s left is being able to drive the human being to human being conversations to actual closure.”
—Richard Hawkes (01:39)
Emergence of Management and Relationship Building:
AI doesn’t just free up time; it pushes everyone up the value chain, emphasizing leadership, conversation, and collaboration.
“It almost is pushing everyone into management. ... It gives you this ability to do less repetitive tasks and work more in relationship building.”
—Jonathan Green (02:28)
Inherent Tensions Are Unavoidable:
Every business, worldwide, contains built-in tensions between departments—e.g., sales, marketing, product, operations.
“They naturally exist in the business as a system.”
—Richard Hawkes (03:56)
AI as a Communication Accelerator:
AI helps articulate perspectives quickly and creates written narratives that bridge gaps between departments, supporting alignment and understanding (05:00–06:54).
Narrative-Driven Conversations Inspired by Amazon:
Richard references Jeff Bezos’ narrative meetings at Amazon; similarly, AI makes narrative-building easier for everyone, potentially fostering a cultural shift toward deeper, more thoughtful business conversations.
Spectrum of Trust:
People range from complete trust (blindly sending AI-generated reports) to total skepticism (fear from high-profile AI blunders). The right approach? Cautiously iterative, with validation and alignment at each step (07:39–09:58).
Trust Is Built Through Shared Experience:
“Trust is the residue of promises kept.”
—Richard Hawkes (07:41)
Danger of Skipping Steps:
AI tends to skip to conclusions, assuming you won’t ask follow-up questions—a mismatch with how most humans process complex topics.
“It always jumps to giving you a conclusion because it always assumes you’re not going to ask another question.”
—Jonathan Green (09:58)
Breaking Down Complexity:
The challenge (and skill) is structuring change as a series of aligned, shared conversations rather than racing to a quick answer.
The Tool-First Trap:
Many businesses buy a shiny AI tool before defining the problem to solve—a reversal of effective problem solving (12:10–12:22).
Richard’s “Big Change Canvas”:
His company developed an AI-assisted framework that guides organizations through the necessary stakeholder conversations, ensuring both satisfaction and trust along the way.
AI Interfaces Are Solution-Centric—Human Change Is Process-Centric:
Current AI chat interfaces are designed for speed and quick answers, often skipping the essential journey of stakeholder alignment (13:55–15:03).
AI Is Programmed for Affirmation and Speed:
AI models aim to maximize positive feedback and minimize resource use, sometimes at the cost of accuracy or alignment with user needs (15:03–17:01).
“Hallucinations” Are Just Wrong Answers:
Jonathan challenges the term “hallucinate,” highlighting that users experience this as deception or error, not something benign.
AI Embeds Its Creators’ Biases:
Even image-generating AIs reflect their programmers’ worldview and biases, underlining the non-neutrality of these tools.
From Too Little to Too Much Data:
The pendulum has swung from not recording enough to compulsively transcribing and storing everything—data by the foot, rather than for use (17:01–18:47).
The Real Value Is in Shared Agreements:
The information that matters most is what is agreed upon and acted upon together—not just what’s recorded (18:49–22:35).
“The knowledge that impacts the world is the knowledge that results in shared agreements between us.”
—Richard Hawkes (19:17)
Clarifying Definitions Is Foundational:
Key business terms and roles can mean radically different things in different contexts. Establishing shared definitions and agreements is crucial—and AI can only guess contextual meaning from surface-level dictionaries (22:35–25:50).
“As soon as you go from one company to another … the CTO’s job is completely different, or the CEO sees their job as differently … the shared language or the social contract is different in each environment.”
—Jonathan Green (23:24)
AI and Memory: Not Always an Advantage:
Perfect recall can stifle relationships; forgetting minor missteps enables smoother collaboration.
Complex Change Goes Beyond Individuals:
Change is often misdiagnosed as an “individual skills” problem. In reality, the hardest and riskiest changes are at the organizational systems and role level (26:45–30:35).
Warning Signs:
Case Study:
Richard shares the story of a failed acquisition due to a CEO’s inability to shift from top-down control to true enterprise leadership, highlighting the pitfalls of mismanaging change at the systems level.
“An organization can never perform … at a higher level than the most level of leadership.”
—Richard Hawkes (30:37)
“What’s left is being able to drive the human being to human being conversations to actual closure.”
—Richard Hawkes (01:39)
“It gives you this ability to do less repetitive tasks and work more in relationship building. And that’s my favorite part of it.”
—Jonathan Green (02:28)
“Trust is the residue of promises kept.”
—Richard Hawkes (07:41)
“It always jumps to giving you a conclusion because it always assumes you’re not going to ask another question.”
—Jonathan Green (09:58)
“Whatever is easy or hard, I’ll deal with that. … There’s almost a perfect inverse correlation. The easier they think it is, the harder it actually is.”
—Jonathan Green (25:50)
“The knowledge that impacts the world is the knowledge that results in shared agreements between us. … It’s creating shared language.”
—Richard Hawkes (19:17)
“Consciousness is a controlled hallucination.”
—Richard Hawkes (26:45)
“An organization can never perform … at a higher level than the most level of leadership … the top leader was unwilling to learn a new role, couldn’t get it, inflexible … so they lost all the value they thought they were acquiring.”
—Richard Hawkes (30:37)
This episode offers a nuanced perspective on AI’s real impact: not about tools replacing people, but shifting the focus towards high-value human conversations, deeper alignment, and change at the systems level. It’s essential listening for leaders, consultants, and anyone navigating digital transformation.