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AI will not be the death of strategy consulting firms I'm a partner at BCG and I've been doing market research and strategy work for 7 years Here are 3 reasons why you should NOT rely solely on Perplexity or other GenAI tools to automate market research. At least not yet. 1. Bad inputs lead to bad analyses. Perplexity and other GenAI tools cannot distinguish between rigorous well researched market reports and poorly supported reports. I've seen publicly available market reports that varied by 50% or more on market size. That's a huge difference. And it matters. For example, if you're an investor or corporate development team looking at buying a leading company in a given market and wondering how much opportunity there is for the company to take share it can make or break your investment decision if the market size is $1B vs. $2B. This is why some of the most critical market research work that consulting firms do is building a bottom-up market model to rigorously size the market. If you're making a decision worth millions of dollars it's not enough to just rely on whatever report happens to be available online. 2. 60% right often just isn't good enough Perplexity and other tools can be incredibly useful. They can speed up research. They can surface considerations you didn't think of. But at least for the moment, they also get things wrong. Just last week I used Perplexity to pull a series of statistics from a few companies' 10K's. 60-70% of the numbers it pulled were accurate. 30-40% were wrong or outdated. At least for the moment, you still need a human in the loop verifying the data these tools surface and thoughtfully integrating the data into the analysis. 3. The right strategy isn't just a data analysis exercise Sure, there's a lot of analysis involved in the development of any good strategy. And GenAI tools can help speed this process up. But there's also a lot of human judgment involved. After all, companies are a collection of actual human beings. And the best strategies incorporate the kinds of people at a company. Don't get me wrong. GenAI tools like Perplexity are hugely important. They are already disrupting elements of market research and strategy development. But they are not replacing strategy consulting firms any time soon.

1 employee per $1M of revenue That’s the rule of thumb a friend of mine is using as he builds a supplement brand I suggested he could do 1 employee per $2M especially with AI tools now Obviously lots more nuance to this but what would be your rule of thumb?

Consumers are still spending -- but the foundation is starting to crack. At BCG we've been digging into the state of the US consumer. Here are 5 emerging insights every brand leader should know 🧑‍💼 1. Consumers are spending down savings From 2021-2024, inflation eroded real incomes but spending rose 2-3% per year. The reason? Consumers were burning through pandemic-era savings. Unless real incomes rebound spending is on borrowed time 2. Growth has been fueled by indulgence 60% of spend growth from '21-'24 came from discretionary categories—travel, entertainment, tech, dining out. Why are consumers spending down savings on discretionary categories? This brings us to point 3 3. High-income earners powered the growth The top 40% of earners drove 70% of growth ('21-'24) masking declines among the bottom 40%. For context: • In 2014–2019, the top 40% drove ~60% of growth • In 2019–2021, growth was widespread across income brackets 4. Now high-income earners are pulling back too In Q1 2025, aggregate consumer spend dropped—led by a sharp decline from the top 20%. The causes? • Persistent inflation • Shrinking perceived wealth as savings dwindle • Rising macro uncertainty (recession, tariffs, geopolitics) 5. These headwinds aren't going anywhere - for now The triple threat—price pressure, declining wealth sentiment, and macro anxiety—is likely to persist in the near term. What does this all mean if you're a consumer brand? • Growth will be uneven. Brands in challenged categories (e.g., alcohol) that stay passive will feel the squeeze. Others—those that adapt quickly—have a real shot at outsized gains. • Bold beats cautious. In this environment, hesitation is expensive. Companies that move decisively on pricing, positioning, and go-to-market will capture disproportionate share as the landscape shifts.

Can we all just agree to stop with the “RIP consulting” takes? Yes AI will have a major impact on consulting. But these are firms built over more than 50 years. They existed before excel. They’ll likely exist after excel is replaced by some AI tool. And most importantly PowerPoint decks are not really what consulting firms are paid for FWIW I get the instinct. RIP consulting is a catchy hook. And I’ve used a similar one so I get it

Time for a re-introduction after >1 yr and a few new followers What I do today: 🔹Partner at BCG (been 7 years; still can't believe it) 🔹My focus: growth strategy & PE diligence (I help PE funds assess companies and markets), mostly Consumer/CPG 🔹Moonlighting as an angel investor Before BCG: 🔹Was a litigator at a large NY law firm for 1.5 years 🔹Represented Puerto Rico in their bankruptcy 🔹And lots of random other cases What I post about: 1⃣ Consulting: getting in, leveling up, AI impact 2⃣ Consumer/CPG: random thoughts, analyses, data, and the occasional spicy take - most recently been deep-diving on the hemp THC bev space (fun way to combine my CPG and legal backgrounds) 3⃣ PE: diligence process, what brands should think about from a PE lens, random memes DMs open - send questions, ideas, random thoughts. Always down to talk the future of consulting, the latest CPG brand, or how AI is changing everything

This is an awesome prompt for learning quickly I’ve used something like this a bunch when learning about a new industry The challenge is that I’ve found about 30% of the analysis is just wrong. Either the numbers are outdated, the competitive dynamics are mischaracterized, consumer perception is sometimes wholly made up, or something else Deep research is a great way to learn quickly. But definitely demands a bit of careful review

4 things THC beverage brands can begin to do now: 1. Get politically active. If your business depends on legalizing THC, don't leave the debate to others. Get active and try to change minds over the next 12 months before the ban goes into effect. 2. Survey and speak with your consumers. If you have an email list from your DTC business survey your consumers or use AI-led consumer interviews. Your goal is to figure out how you can extend your brand beyond THC. Ask them, what does your brand stand for from their perspective? What occasions did they drink your beverage (e.g., party with friends, end of day wind-down)? What other food and beverage brands do they love? What other products would they be interested in purchasing from you? 3. Begin working on new non-THC products. Consider close-in extensions like energy drinks, calming/relaxation drinks, or other functional beverages. Determine if you'll need new manufacturing or can use existing partners 4. If you're in retail, begin talking to your buyers. Explore if they'd be interested in other products from you to serve the same consumer. Lots more to do but this is a starting list. If you're thinking through next steps my DMs are open

Just watched this again. This is HUGE! I’m now imagining what my first 2 years at BCG would’ve looked like if this existed. Those 3am nights would’ve easily ended earlier Could’ve spent more time reviewing interest data cuts and less time cutting data Just incredible!

You’re a strategy consultant? Name all the strategies 🧐

Incredible clip on the difference between optimizing a business from behind an excel model vs. running it day to day What works in excel might FEEL incredibly stressful in real life and make growth much harder to actually achieve

Great reminder not to overlook non obvious channels A channel can be valuable as 1) volume driver 2) billboard / awareness driver Or both - eg grocery Fishwife in Nordstrom is a great example. Probably not gonna do a ton of vol there but great exposure to their consumer

1 employee per $1M of revenue That’s the rule of thumb a friend of mine is using as he builds a supplement brand I suggested he could do 1 employee per $2M especially with AI tools now Obviously lots more nuance to this but what would be your rule of thumb?

Can we all just agree to stop with the “RIP consulting” takes? Yes AI will have a major impact on consulting. But these are firms built over more than 50 years. They existed before excel. They’ll likely exist after excel is replaced by some AI tool. And most importantly PowerPoint decks are not really what consulting firms are paid for FWIW I get the instinct. RIP consulting is a catchy hook. And I’ve used a similar one so I get it

AI will not be the death of strategy consulting firms I'm a partner at BCG and I've been doing market research and strategy work for 7 years Here are 3 reasons why you should NOT rely solely on Perplexity or other GenAI tools to automate market research. At least not yet. 1. Bad inputs lead to bad analyses. Perplexity and other GenAI tools cannot distinguish between rigorous well researched market reports and poorly supported reports. I've seen publicly available market reports that varied by 50% or more on market size. That's a huge difference. And it matters. For example, if you're an investor or corporate development team looking at buying a leading company in a given market and wondering how much opportunity there is for the company to take share it can make or break your investment decision if the market size is $1B vs. $2B. This is why some of the most critical market research work that consulting firms do is building a bottom-up market model to rigorously size the market. If you're making a decision worth millions of dollars it's not enough to just rely on whatever report happens to be available online. 2. 60% right often just isn't good enough Perplexity and other tools can be incredibly useful. They can speed up research. They can surface considerations you didn't think of. But at least for the moment, they also get things wrong. Just last week I used Perplexity to pull a series of statistics from a few companies' 10K's. 60-70% of the numbers it pulled were accurate. 30-40% were wrong or outdated. At least for the moment, you still need a human in the loop verifying the data these tools surface and thoughtfully integrating the data into the analysis. 3. The right strategy isn't just a data analysis exercise Sure, there's a lot of analysis involved in the development of any good strategy. And GenAI tools can help speed this process up. But there's also a lot of human judgment involved. After all, companies are a collection of actual human beings. And the best strategies incorporate the kinds of people at a company. Don't get me wrong. GenAI tools like Perplexity are hugely important. They are already disrupting elements of market research and strategy development. But they are not replacing strategy consulting firms any time soon.

Just watched this again. This is HUGE! I’m now imagining what my first 2 years at BCG would’ve looked like if this existed. Those 3am nights would’ve easily ended earlier Could’ve spent more time reviewing interest data cuts and less time cutting data Just incredible!

Consumers are still spending -- but the foundation is starting to crack. At BCG we've been digging into the state of the US consumer. Here are 5 emerging insights every brand leader should know 🧑‍💼 1. Consumers are spending down savings From 2021-2024, inflation eroded real incomes but spending rose 2-3% per year. The reason? Consumers were burning through pandemic-era savings. Unless real incomes rebound spending is on borrowed time 2. Growth has been fueled by indulgence 60% of spend growth from '21-'24 came from discretionary categories—travel, entertainment, tech, dining out. Why are consumers spending down savings on discretionary categories? This brings us to point 3 3. High-income earners powered the growth The top 40% of earners drove 70% of growth ('21-'24) masking declines among the bottom 40%. For context: • In 2014–2019, the top 40% drove ~60% of growth • In 2019–2021, growth was widespread across income brackets 4. Now high-income earners are pulling back too In Q1 2025, aggregate consumer spend dropped—led by a sharp decline from the top 20%. The causes? • Persistent inflation • Shrinking perceived wealth as savings dwindle • Rising macro uncertainty (recession, tariffs, geopolitics) 5. These headwinds aren't going anywhere - for now The triple threat—price pressure, declining wealth sentiment, and macro anxiety—is likely to persist in the near term. What does this all mean if you're a consumer brand? • Growth will be uneven. Brands in challenged categories (e.g., alcohol) that stay passive will feel the squeeze. Others—those that adapt quickly—have a real shot at outsized gains. • Bold beats cautious. In this environment, hesitation is expensive. Companies that move decisively on pricing, positioning, and go-to-market will capture disproportionate share as the landscape shifts.

For all those that grew up calling all sodas POP - shoutout to all midwesterners - this is a HUGE win!

Time for a re-introduction after >1 yr and a few new followers What I do today: 🔹Partner at BCG (been 7 years; still can't believe it) 🔹My focus: growth strategy & PE diligence (I help PE funds assess companies and markets), mostly Consumer/CPG 🔹Moonlighting as an angel investor Before BCG: 🔹Was a litigator at a large NY law firm for 1.5 years 🔹Represented Puerto Rico in their bankruptcy 🔹And lots of random other cases What I post about: 1⃣ Consulting: getting in, leveling up, AI impact 2⃣ Consumer/CPG: random thoughts, analyses, data, and the occasional spicy take - most recently been deep-diving on the hemp THC bev space (fun way to combine my CPG and legal backgrounds) 3⃣ PE: diligence process, what brands should think about from a PE lens, random memes DMs open - send questions, ideas, random thoughts. Always down to talk the future of consulting, the latest CPG brand, or how AI is changing everything

Do management consultants make good entrepreneurs?

4 things THC beverage brands can begin to do now: 1. Get politically active. If your business depends on legalizing THC, don't leave the debate to others. Get active and try to change minds over the next 12 months before the ban goes into effect. 2. Survey and speak with your consumers. If you have an email list from your DTC business survey your consumers or use AI-led consumer interviews. Your goal is to figure out how you can extend your brand beyond THC. Ask them, what does your brand stand for from their perspective? What occasions did they drink your beverage (e.g., party with friends, end of day wind-down)? What other food and beverage brands do they love? What other products would they be interested in purchasing from you? 3. Begin working on new non-THC products. Consider close-in extensions like energy drinks, calming/relaxation drinks, or other functional beverages. Determine if you'll need new manufacturing or can use existing partners 4. If you're in retail, begin talking to your buyers. Explore if they'd be interested in other products from you to serve the same consumer. Lots more to do but this is a starting list. If you're thinking through next steps my DMs are open