What happens when AI meets an industry built on expertise?
In this episode of Strategy Simplified, Jenny Rae sits down with Dr. Soren Kaplan - Wall Street Journal bestselling author, innovation expert, and co-founder of Praxie.com - to explore how artificial intelligence is disrupting the traditional consulting model.
From his early days in boutique firms to advising global giants like Disney and Visa, Soren brings decades of experience to a fast-moving conversation about:
- Why consulting as we know it is broken - and what’s replacing it
- The 5 flaws in the traditional consulting model
- How AI is transforming project delivery, team dynamics, and client value
- What skills (hint: they’re not all technical) will set consultants apart in the AI era
- How to future-proof your consulting career or firm
Whether you’re a seasoned strategist, a boutique founder, or a new consultant entering the field, this episode is packed with insight into how to lead, adapt, and thrive in a changing industry.
Connect with Soren
- Connect with Soren
- Read Soren's Inc. article on AI in the consulting industry
- Follow Soren on LinkedIn
Partner Links
- Stax is hiring! See open roles and requirements
Transcription:
Introducing Soren Kaplan: Innovation Expert and Author
I'm excited today to welcome Soren Kaplan to the pod. Soren is a Wall Street Journal best-selling author, an award-winning thought leader, a former corporate executive, and co-founder of Crackseat.com. He is a current columnist for Inc. Magazine and Psychology Today, an affiliate at USC’s Center for Effective Organizations, and an international keynote speaker.
Dr. Kaplan has led consulting and development initiatives for thousands of leaders globally, including over 30 Fortune 1000 companies like Disney, Visa, Colgate-Palmolive, and Cisco. Recognized by Business Insider and Thinkers50 as a top management expert, his work has appeared in Harvard Business Review, Forbes, Fast Company, and NPR. He has lectured at Harvard, Copenhagen Business School, and Melbourne Business School.
His three award-winning books include Experiential Intelligence, which explores how life experience drives leadership and innovation. He holds master’s and PhD degrees in organizational psychology. So overall, Soren's a super big slacker, and we're really excited to have him on the pod today.
Welcome, Soren.
Thanks, Jenny Rae. Great to be here.
Leadership Traits That Drive Innovation
Well, you've worked with some leadership teams across over 30 Fortune 1000 companies. Can you talk just right off the bat a little bit about some leadership traits that you believe are critical for driving innovation today? And especially in your work—the longitudinal view—how have you seen these traits evolve over the past few years?
Yeah, that's a great question. So I've worked with companies like Disney, Visa, Colgate, and Red Bull. I think that historically, big companies and leaders—even in startups—needed to have a view of where they’re taking the business. That's the 50,000-foot view.
But the best leaders can drill down real quick into the 10,000, 5,000, and 1,000-foot views—but not get stuck there—and kind of fly at multiple altitudes. That's one thing I’ve seen become more important because the timeframe for that big vision is getting shorter and shorter. Things are changing so fast. Long-term planning is now a year, if not less.
Disruption in Consulting: Predictions That Came True
In the title of our podcast, Strategy Simplified really highlights the fact that sometimes the best strategies are simple north stars. And you've really been ahead of the curve in forecasting disruption in consulting.
Can you just—and by the way, I don’t know if you’ve written any of these articles—but I was telling somebody yesterday: for the last 25 years since I’ve been in consulting, the “death of consulting” has been one of the most popular click-baity article headlines.
And what we've actually seen is just an evolution in consulting. It's definitely not the same as it was 25 years ago, but it’s also not as dramatically different as many predicted. But there is disruption happening, and there is opportunity in the future.
Can you talk a little about predictions you made that have come true?
Well, I have to admit, I probably have a couple of those viral articles out there on my Inc. column.
It’s you! Sorry, I knew it was you.
Yeah, I apologize. I did write one about how AI will be disrupting management consulting. Let me give you an example, because I've got engagements going on right now.
Real Example: Using AI in Client Work
I have just been doing something with an organization called Points of Light. Points of Light is actually a nonprofit, but they’re the largest mobilizer of corporate volunteerism in the U.S. They mobilized 3 million volunteers last year. So they do corporate CSR programs.
I did a whole strategy initiative with them where we did focus groups with a bunch of young people about volunteering—Gen Zers and what their needs are. So we were doing focus groups on Zoom with a dozen people or so. We used artificial intelligence to capture those transcripts and create the reports.
Something that would have taken multiple weeks to do—we created a report in probably three-quarters of a day. The client still got the high-quality result, but we were able to use AI through ChatGPT, taking it from Zoom, and really developed something that was top-notch, wowed the client, and saved us a ton of time.
So when you start to look at individual steps and processes in consulting, it's really just about how you get creative and use AI to transform how you’re doing things—to save time and add value to your clients.
Getting Started in Consulting: Soren’s Origin Story
I'm going to talk in just a minute about the future of consulting. Just to press into that a little bit, but first I think it'd be fun to go backwards. How did you get into this mess?
Every one of us has a story, but what's your story for how you got started?
I was in the San Francisco Bay Area. That’s where I grew up. I cold-called 20 consulting firms, asking them if they had an internship where I could work for free over the summer.
Two of them took my call. One was an HR firm—they didn’t want me after I took the personality test. I'm not sure what they found there. The second one was an innovation management consulting firm—a kind of mix between McKinsey and IDEO.
I worked for them for free over the summer. Then they offered me a part-time job. Then they offered me a full-time job. They were a small firm in Ghirardelli Square overlooking San Francisco Bay—but we had huge clients.
I got to work with Toyota, HP, Kodak at the time. HP was a big client. I got to know the folks there, and then got hired from that small boutique firm into an internal strategy group within HP. So I went from boutique to internal—and that’s what got me started.
The 5 Flaws in the Consulting Business Model
Let’s go back to talk about the future. But I really do wonder what happened in that first personality test, don’t you?
Maybe some things are better left unknown…
Well, in your recent Inc. articles, you've talked specifically about a few flaws in the consulting model. And you probably know these off the top of your head—just for the benefit of our listeners, I have them written down here.
The first one was labor intensity. I think you're going to talk about that specifically related to AI—that example you just gave certainly speaks to it. The second was billable time. Then high margins—I'm not sure that consulting firms would agree with that one, so I'm interested to hear more.
Then time-bound value. And finally, knowledge commoditization.
Out of all five, can you just describe them briefly, and then prioritize them? Which one is most urgently putting pressure on consulting disruption today?
Yeah, I think they're all coming together to create urgency and drive disruption in consulting.
The Pressure of Time-Bound Value and AI Alternatives
Time-bound value is an interesting one because it ties to billable time. Typically, consultants sell time. And once we’re done, we stop making money and we go away. The client is left with our snapshot-in-time strategy report or whatever we delivered.
So we stop making money. The client stops getting value. That’s a challenge with consulting. I’ve experienced it myself. I’ve been doing consulting for 25 years. And if I stop, my revenue streams dry up.
Which is why I started creating digital products and stuff like that.
When you look at disruption—because we’re talking about industry disruption—it usually starts with something that’s inefficient, something not adding as much value as it could. Then an alternative comes in and replaces it.
You talked about the evolution of consulting. I think it is evolving. But at the same time, we’re seeing other tools and options give management teams different choices—ways to do a SWOT analysis or gain insight quickly without a consultant.
That’s a threat.
High Margins and the Rise of Boutique Firms
So when you look at the flaws you just listed, I’d say time-bound value and knowledge commoditization are the biggies.
I do think high margins are also a challenge. Larger firms operate on a leverage model—billing out less experienced consultants at a cheaper daily rate, but with high markup margins on top.
There’s growing awareness of this. More clients realize they can get the same or better value by going to an individual contractor or a boutique firm.
So we’re seeing a lot of firms doing that. Going to those solo consultants or boutique firms—getting better value, and still finding high-quality talent. That’s where a lot of the disruption is showing up.
AI vs. Consulting Intuition: Where Machines Fall Short
We’ve absolutely seen an expansion—I might even say an explosion—of demand and hiring in boutique-style firms. So let’s go back to AI. I know this is top of mind for a lot of people. A lot of the firms are saying they want to see consultants use AI.
But I’ve got to tell you a story from a recent training I did. I was standing in front of a room and asked everyone to put away technology and size the market of bicycles in Italy. It was silent. You could hear a pin drop. Nobody knew where to start.
We can use AI for a lot of things—but some of the most valuable tasks, we can't. And I’m not even sure we’re training people to think like we used to.
Tell us how AI is accelerating disruption, and where you see areas that are protected or becoming more valuable in the age of AI?
Experiential Intelligence and Prompting as a Superpower
Well, I wrote a book called Experiential Intelligence, which really argues that intellect—and left-brain thinking—is going to be commoditized and disrupted by artificial intelligence.
But right-brain thinking—creativity, connection-making, prompting—that's where the differentiation lies. Prompt engineering for consultants is a big opportunity right now.
If you’re trying to skill up consultants, help them understand: how do you ask questions in the most insightful way, based on experience?
It’s one thing to ask AI for a SWOT analysis. It’s another to ask for a SWOT that connects multiple industries or explores emerging tech. But you won’t know to ask those nuanced questions unless you have experience to draw from.
The more consultants train themselves to think creatively about prompts—and to apply experience and strategic thinking—the more they’ll stand out.
Two Paths: Using and Selling AI in Consulting
Eventually, even great prompting might get commoditized. But right now, there are two things consultants need to do.
First, use AI in your consulting. Augment your strategy and change management tools using AI.
Second, offer AI as a product. Start offering solutions that integrate AI into your deliverables or as a standalone offering. You can either use AI to be better—or package AI to create new value.
Both paths represent major opportunity today.
Okay, so let’s talk about the second one in particular. You mentioned consulting might be shifting—from delivery to differentiation. It’s not just checking boxes anymore. It’s about providing insight a client couldn’t generate on their own.
You talked about integrating AI-powered solutions. Let’s turn to the labor market. What are two technical or strategic skills someone should lead with if they were cold-calling 20 consulting firms today?
The Most Underrated Consulting Skill? People Skills.
Yeah, so I may surprise you with this answer: people skills.
I’ve done innovation and business strategy for years. That includes strategy, planning, analytics, design thinking, product development. But the value often comes from human interaction—from bringing people together across silos.
For example, years ago I was working with the CTO of Colgate-Palmolive. I was brought in to help create tech roadmaps across their product lines. We were working with R&D, but the real breakthrough came when we brought in marketing.
We defined customer pain points and aligned product development with them.
During a downturn, Colgate cut most consultants—except for my firm. Why? Because we weren’t just delivering a deck. We were facilitating collaboration—bridging R&D and marketing, helping them prioritize resources, align on strategy, and own the solution.
That kind of process consulting, combining facilitation with analytical depth—that’s the difference. That’s where real value lies. These days, that’s what I lead with in most engagements.
Will AI Replace Consultants?
I love that. Yeah, I’m imagining a lot of the politics of the work that I've done. It's not capability—it’s cohesion, right? That’s the differentiator. You might have written this article, so I need you to either back it up or back down...
Candidates are worried that AI might replace consultants altogether. They’re wondering if they should even go into consulting. Is it a dying field?
Just last week, I was writing a legal document, and ChatGPT gave me a solid first draft. One hour of legal review later, it was good to go. So we’re watching knowledge barriers collapse. Is this the death of consulting?
Will it go away? Will it expand, stagnate, or shrink?
The Truth About Consulting’s Future
I think I did write that article because I cited some of your research in it...
Hey, be careful. We’ll arm wrestle over this!
Look, it’s buzzworthy and viral to say “consulting is going away.” But it’s not. It’s going to change.
Let me share a personal story. I’m part of a men’s group—it's a Zoom call where we open up, get vulnerable. A few nights ago, everyone on the call—business owners, consultants, tech leaders—was saying the same thing: “I feel vulnerable. AI could change everything I do.”
That’s not unique to consultants. AI is touching every sector. So no, consulting won’t disappear. But it will evolve.
Consultants Must Evolve Their Offerings
We need to understand AI tools. We need to help our clients understand them. And we need to create offerings that align with what our clients actually need today—tools that add value and generate new revenue streams.
That means we must innovate consulting itself.
You can do that by using AI within your delivery. You can do it by offering new solutions powered by AI. Ideally, you're doing both. You’re modernizing your approach and modernizing your products.
What Clients Want—And What They Don’t Know to Ask For
Let’s talk about clients. How much of this disruption is being driven by what clients want? And how much is happening because they don’t know what they need—but still expect you to lead them?
It depends on the sector. I do a lot of work in healthcare. It’s a very slow-moving industry. Highly regulated. Culturally resistant to change. Honestly, they’re not asking for anything new yet.
It’s like wine, Soren. Still just putting juice in a bottle!
Exactly. I think they should keep doing that. But seriously—some industries are just slow to change. Healthcare is one of them.
Now compare that to tech or retail. Totally different story. Marketing, for example, has seen the fastest adoption of AI of any function. Internal marketers are anxious—AI can already create agency-quality copy, images, videos.
If you're a marketing consultant and you’re not using AI, you’re already behind. In healthcare, you're not behind yet—but you should be preparing your clients for what’s coming.
How Young Consultants Should Use AI (Without Losing Their Edge)
I mentioned earlier there's this balance between needing to know how to use AI—and not numbing yourself to the core capabilities that actually make you valuable. So if you were advising someone 21, 22, 23 years old, just starting their career...
How do they use AI, but also maintain focus on their differentiating skills? What advice would you give?
Some of this is just getting back to the basics.
If you're just entering the workforce or consulting, what I did 30 years ago still applies. Contact as many consulting firms—or even nonprofits—and offer your time as an intern. Work for free for a few months if needed.
I did that in conflict resolution at a community nonprofit. It built my resume and taught me critical skills. I got my first real consulting job that way.
Today, lots of organizations need AI help. If you're young, you probably “get” it more than folks inside stodgy firms. So lead with that. Offer to help for free in exchange for a reference or resume boost.
Stack your experience doing the work you want to be doing. That’s how you get started—and how you position yourself for the next (paid) step.
Every Organization Is Dysfunctional (And That’s Your Opportunity)
I don’t know if this is true for you, but I’ve found that pretty much every organization I’ve worked with—even my own—looks really organized from the outside. But the closer you get, the more you realize you can help.
Totally. One of the things I’ve come to internalize—maybe as I lose hair and it turns gray—is this: every organization is dysfunctional. The only question is to what degree.
Great companies are just a little less dysfunctional than bad ones. But there's always room to help. Sometimes it's technical. Sometimes it's organizational—how people work together. Often, it’s both.
That means consulting is always needed. Whether it's AI strategy, internal marketing automation, collaboration process, or cross-functional planning, there’s always a way to make things better.
The Consulting Mindset Shift: From Execution to Facilitation
So this might double down on that idea—but beyond tools and technology, is there a mindset shift consultants need to adopt so they don’t get left behind?
Absolutely. I learned this the hard way.
One of my first clients was Levi Strauss in San Francisco. We had a few different consulting firms in the room—but we were the strategy and innovation consultants. The leads. The ones they were relying on.
We didn’t realize it.
So we showed up and didn’t step up. We didn’t lead the meeting. It was awkward. The next week, they called us back in—almost ready to fire us.
That experience taught me two things:
- Always clarify expectations with clients.
- Know when to step up and lead.
Clients don’t just want input. They want a guide. They want someone to lead a process—someone who can facilitate collaboration, drive outcomes, and own the delivery path. That mindset shift is essential.
You’re not just a research assistant. You’re not just filling slides. You’re leading a process that solves real problems and drives measurable value.
Building Thought Leadership in a Crowded Market
I’ve got a couple of fun questions to wrap up with. First— you’ve not only done consulting, you’ve also developed thought leadership. That’s a goal for a lot of people, especially senior leaders or solo consultants.
How does someone build authority today in a crowded digital landscape?
It is crowded. But it’s also digital—and that’s the opportunity.
Here’s what I told a VP at a big pharma firm who wanted to go out on his own. He had industry experience but no consulting track record. I said: write a white paper. Just a simple PDF about your services and some trends. Frame your sales pitch as education.
Then go to a networking event—or just hand it out to prospects. He did it. And he got a client. That white paper created credibility. And today, you can use AI to draft it and make it visually appealing.
Anyone can package their knowledge into content that looks sharp and builds authority—white papers, LinkedIn posts, videos. The key is to show what you know and how you help others succeed.
Soren’s Leadership Pivot: From Road Warrior to Portfolio Builder
You’ve mentioned your white hair and your years of experience. What was your biggest personal leadership “aha” moment?
One of my biggest pivots came when I was flying 150,000 miles a year. Classic road warrior lifestyle. And like a lot of consultants, it took a toll—especially on my personal relationships.
I realized I needed to work smarter, not harder. So I started writing more. My first book led to leadership development work, then speaking engagements. That broadened my offering and diversified how I worked.
More recently, I realized: if I stop working, I stop earning. Consulting and speaking are still time-for-money models. So I started shifting toward digital assets—online courses, coaching platforms, evergreen programs.
That shift was based on some hard-earned battle scars—but also a lot of rewarding client work. Now I get to collaborate with leaders and help them innovate and grow, while also scaling my impact.
One Tip to Future-Proof a Consulting Career
One last career question before a few fun ones. If someone starts their consulting career on September 1, 2025—what’s the single best thing they can do to future-proof it starting on day one?
Find a mentor.
This has nothing to do with tech. It’s about human connection. Find someone who can help you navigate the consulting landscape and also understand yourself—your values, your goals, your learning curve.
It could be your manager, a peer, or someone outside the firm. But find a person you trust to guide you.
Fun Rapid-Fire: Rest, Recipes, and AI Magic
Alright, time for a few fun ones! In a keynote recently, I was talking about rest and longevity. What’s one way you rest effectively?
I get on my mountain bike and ride 20 miles in the mountains. That’s meditative for me. It’s physically tiring—but energizing at the same time.
If you had to cook me a meal—I’ll bring the wine—what would you make?
I’d tap into the amazing Pacific Northwest salmon up here near Bellingham, Washington. I’d barbecue a fresh salmon fillet. Simple, delicious, and perfect with a white wine.
Sounds great. Let’s do it! Okay—last one, back to AI. What’s one AI tool or innovation that’s doing something unexpected or exciting you right now?
There’s a tool called machined.ai. It creates SEO-optimized articles and publishes them directly to your site. In minutes, you can have a fully built content engine that supports your brand.
Of course, you want to tweak and edit to maintain voice. But for consultants, it’s a magical tool—especially for building thought leadership at scale.
Wrapping Up: A Fresh Perspective on the Future
I love it, Soren. Thank you so much for your time today. I’ve really enjoyed this conversation—your insights, your career arc, and of course, the invitation for wine and salmon. I’ll hold you to it!
We're on, Jenny. Thanks.