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AI Won’t Save You—Unless You Fix This First
(c) Andrew Lawless LLC
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RESOURCES
AI-First for Boutique Consultants: https://www.teamlawless.com
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SUMMARY
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Let’s be real. AI isn’t magic. It’s a mirror. For mid-sized consulting, IT, legal, or financial firms, this shows all the messy systems, siloed files, and unscalable workflows you’ve been meaning to fix."
In this episode, Andrew and Steph's Digital Twins dive in. They cut through the hype. They show what AI transformation looks like for those outside the Fortune 100 and without a large dev team.
Feeling pressured to dive into AI? Not sure how to begin? You want to avoid burning out your team, losing trust, or wasting money. This guide is your shortcut.
Steph’s Digital Ambassador (00:00):
Welcome to the deep Dive. If you're running or working in a mid-sized knowledge firm, say consulting IT services, law, finance, you're probably feeling it right now.
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Transcript
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Andrew’s Mindmate (00:12):
The AI wave.
Steph’s Digital Ambassador (00:13):
Exactly. The potential. But also, let's be honest, the pressure.
Andrew’s Mindmate (00:17):
Definitely.
Steph’s Digital Ambassador (00:17):
So we've been digging into some recent analysis, trying to cut through the noise,
Andrew’s Mindmate (00:21):
Get to what really matters for firms like yours,
Steph’s Digital Ambassador (00:23):
Right? Think of this as a shortcut, a deep dive into the core opportunities and yeah, the challenges [00:00:30] of AI adoption in our sector,
Andrew’s Mindmate (00:32):
And maybe find some clarity
Steph’s Digital Ambassador (00:34):
That's the mission, the clarity, maybe some inspiration, moving past the hype to what you can actually do.
Andrew’s Mindmate (00:39):
And we'll touch on a specific partnership model that's popping up more.
Steph’s Digital Ambassador (00:41):
Yeah. This Consulting for equity idea. Interesting angle. So the big question for you listening, feeling that pool of ai, the possibilities, but maybe a bit unsure about the smartest path forward for your firm.
Andrew’s Mindmate (00:54):
That's what we're exploring today.
Steph’s Digital Ambassador (00:55):
Let's dive in
Andrew’s Mindmate (00:56):
This. Okay, so the first thing that really stands out from the analysis is this [00:01:00] dual reality.
Steph’s Digital Ambassador (01:01):
Dual reality. How so?
Andrew’s Mindmate (01:03):
Well, on one hand, there's undeniable excitement, huge potential for growth, for efficiency and knowledge work. It's genuinely transforming.
Steph’s Digital Ambassador (01:12):
Here's always a but,
Andrew’s Mindmate (01:14):
But yeah, the flip side is the implementation challenge. It's significant, especially for mid-size firms,
Steph’s Digital Ambassador (01:19):
Right? Which is where that partnership model comes
Andrew’s Mindmate (01:21):
In. Exactly. The consulting for equity approach. Basically experts trade their services, their AI implementation help for a stake in [00:01:30] the company.
Steph’s Digital Ambassador (01:30):
So it aligns incentives for the long haul.
Andrew’s Mindmate (01:33):
Precisely. It can ease the upfront financial hit and maybe more importantly, the complexity burden. It ties success together. It's about purpose meeting principle in a way
Steph’s Digital Ambassador (01:42):
That makes sense. And speaking of principles, one thing that really jumped out at me was the increased focus on risk leaders are thinking beyond just the tech itself.
Andrew’s Mindmate (01:51):
Oh, absolutely. It's not just, does it work? How does it impact us?
Steph’s Digital Ambassador (01:55):
Yeah. The human side, we saw figures like what? Over a quarter of leaders worried about [00:02:00] hitting employee engagement
Andrew’s Mindmate (02:01):
And about a fifth concern. It could erode trust in leadership. That's not trivial.
Steph’s Digital Ambassador (02:06):
No. It shows they're thinking about core principles about the company culture,
Andrew’s Mindmate (02:11):
And then you layer on the ethical stuff around 30% are focused there. And compliance, which is huge, maybe 27% flag that, especially in regulated spaces like law or finance,
Steph’s Digital Ambassador (02:21):
Get AI wrong there and the consequences are massive
Andrew’s Mindmate (02:24):
For sure. And then there's security and privacy always top of mind. Something like 77% of decision makers [00:02:30] see AI risks. Nearly half have already beefed up cybersecurity.
Steph’s Digital Ambassador (02:34):
I saw a point somewhere that AI essentially remembers everything that's kind of chilling when you think about sensitive client data.
Andrew’s Mindmate (02:42):
It is, and it really highlights the caution around these black box ais where you don't totally know how they reached a
Steph’s Digital Ambassador (02:47):
Conclusion. Right? Loss of control, risk to client, trust risk to the firm's reputation. It all boils down to can we actually do this responsibly?
Andrew’s Mindmate (02:57):
Can we adopt AI without breaking our culture [00:03:00] or risking our core assets? It forces a question about the real purpose of adoption. Is it just efficiency or something deeper,
Steph’s Digital Ambassador (03:06):
Like enhancing value while staying true to your principles?
Andrew’s Mindmate (03:09):
Exactly. And the desired solution seems to lean towards that. A very human-centered approach. Governance transparency, but crucially, getting the workforce involved,
Steph’s Digital Ambassador (03:21):
Not just imposing it from the top down.
Andrew’s Mindmate (03:23):
Right?
Steph’s Digital Ambassador (03:23):
Right.
Andrew’s Mindmate (03:24):
Making it a shared purpose. We see nearly half of firms offering AI training a third are actively re-skilling [00:03:30] folks that helps turn that anxiety into engagement.
Steph’s Digital Ambassador (03:33):
Okay, so training is key, but what about the guardrails? The governance part,
Andrew’s Mindmate (03:38):
Also critical, clear ethical guidelines. Solid oversight. Things like robust data privacy policies, maybe auditing the AI models. It's good to see. Over 40% are tightening cybersecurity and privacy measures.
Steph’s Digital Ambassador (03:50):
And this is where that partner model could fit in again,
Andrew’s Mindmate (03:53):
Potentially. Yes. A consulting for equity partner isn't just selling you software. They're invested long-term. They give [00:04:00] a trusted ally in building those governance frameworks, handling compliance, picking secure tools that align with your firm's principles.
Steph’s Digital Ambassador (04:06):
Because their success depends on yours
Andrew’s Mindmate (04:08):
Precisely. They might suggest starting small, maybe an internal tool first to build comfort and they can help manage the change, the communication, the workshops, addressing fears.
Steph’s Digital Ambassador (04:17):
So it fosters a culture where AI is seen as helpful, not threatening.
Andrew’s Mindmate (04:22):
Yeah, responsible innovation that builds trust and makes it easier to scale later.
Steph’s Digital Ambassador (04:27):
Okay. Let's shift gears slightly. Another major [00:04:30] point from the analysis was this AI readiness gap.
Andrew’s Mindmate (04:35):
Ah, yes. The gap between enthusiasm and reality,
Steph’s Digital Ambassador (04:38):
Right? People are excited about ai, but maybe their internal processes, their data, it's not quite ready.
Andrew’s Mindmate (04:45):
Exactly. There was some insightful analysis. I think Andrew Lawless touched on this, that AI basically amplifies whatever you already have.
Steph’s Digital Ambassador (04:52):
So if your processes are messy,
Andrew’s Mindmate (04:53):
AI just makes them messy, faster, and at scale. It highlights the principle of needing a solid foundation first.
Steph’s Digital Ambassador (04:59):
That makes sense. [00:05:00] I saw a model maybe grant wilds with stages of AI readiness, basic awareness, ad hoc,
Andrew’s Mindmate (05:06):
Right? Those early stages. But the real value, the transformation comes at higher levels. AI driven transformation.
Steph’s Digital Ambassador (05:12):
And many firms just aren't there yet.
Andrew’s Mindmate (05:14):
Not yet. And rushing it means you might just automate bad habits or speed up poor decisions like tuning up a race car before the pit crew knows what they're doing.
Steph’s Digital Ambassador (05:22):
And the data piece feels fundamental here for knowledge firms, client files, project docs
Andrew’s Mindmate (05:29):
Critical. [00:05:30] If that data is flawed, inconsistent, incomplete. The AI learns the wrong things.
Steph’s Digital Ambassador (05:36):
It won't magically clean it up for you.
Andrew’s Mindmate (05:37):
No, as wild pointed out, that's a common myth. Garbage in, garbage out, amplified. The principle of data integrity is paramount.
Steph’s Digital Ambassador (05:45):
So this gap, this lack of readiness is a major execution blocker.
Andrew’s Mindmate (05:49):
It is. It's born from those messy operations. The data silos. Without fixing those, the AI investment might just fall flat.
Steph’s Digital Ambassador (05:57):
So the principled solution here seems pretty clear [00:06:00] then.
Andrew’s Mindmate (06:00):
Yeah. Focus on the foundations first. Optimize the processes, get the data right before you go big on ai.
Steph’s Digital Ambassador (06:05):
Fix the roof before you install the solar panels kind of thing.
Andrew’s Mindmate (06:08):
Exactly. And there are concrete steps. First, actually map out your key business processes. Understand the flow, find the bottlenecks,
Steph’s Digital Ambassador (06:16):
Like maybe inconsistent project management in a consulting firm
Andrew’s Mindmate (06:19):
Should be. Then talk to your customers. Talk to your own teams using the processes. Understand the real needs. Don't just guess what AI should do,
Steph’s Digital Ambassador (06:26):
Because guessing just fast tracks bad decisions at scale.
Andrew’s Mindmate (06:30):
[00:06:30] Precisely. Run workshops, get internal buy-in, make sure everyone understands how things work. Now that collective understanding is key.
Steph’s Digital Ambassador (06:37):
And then the data, the big one.
Andrew’s Mindmate (06:39):
The big one, audit it, clean it, organize it, integrate your systems. C-R-M-E-R-P, whatever you use, set up data governance. AI is only as good as its fuel.
Steph’s Digital Ambassador (06:49):
Makes sense. And finally, define clear use cases.
Andrew’s Mindmate (06:52):
Yes. Specific measurable goals. Not just improve efficiency, but automate first draft contracts to cut turnaround by 50%. [00:07:00] Something concrete.
Steph’s Digital Ambassador (07:02):
So all this prep work increases that readiness level.
Andrew’s Mindmate (07:04):
It ensures AI enhances something that already works well rather than magnifying chaos.
Steph’s Digital Ambassador (07:09):
And the consulting for equity partner.
Andrew’s Mindmate (07:10):
Yeah.
Steph’s Digital Ambassador (07:11):
How do they fit here?
Andrew’s Mindmate (07:12):
Well, they can lead this preparatory phase, maybe overhaul knowledge management or streamlined client onboarding. Since they share the upside, they're motivated to get these foundations right before layering on the ai.
Steph’s Digital Ambassador (07:23):
They share the cost and the incentive.
Andrew’s Mindmate (07:25):
Exactly. Their equity stake means their purpose aligns with yours. Build a solid [00:07:30] base for long-term AI driven success. It increases the odds of actually getting that ROI.
Steph’s Digital Ambassador (07:35):
Okay. That leads nicely into the next pain point. Limited resources and just how complex this stuff is, especially for mid-sized terms.
Andrew’s Mindmate (07:44):
Yeah, the scale disadvantage.
Steph’s Digital Ambassador (07:45):
Yeah.
Andrew’s Mindmate (07:46):
Big enterprises have deep pockets and big tech teams. Mid-size firms often don't.
Steph’s Digital Ambassador (07:50):
The stats back that up, right? Like 30% lacking AI expertise over a quarter. Worried about infrastructure costs.
Andrew’s Mindmate (07:57):
That's right. Think about an IT consultancy, [00:08:00] the cost of cloud systems, AI software licenses, specialized talent. It adds up fast.
Steph’s Digital Ambassador (08:05):
And then integrating it with your existing CRM or maybe old legal case management software.
Andrew’s Mindmate (08:12):
Super complex. And you have to be crystal clear, as Andrew Lawless often says, what problem are you actually trying to solve with this new tech? Don't just add tech for tech's sake,
Steph’s Digital Ambassador (08:21):
Which brings up that buy versus build question again.
Andrew’s Mindmate (08:23):
Yeah. Do you buy an off the shelf tool and worry about a third party seeing your data
Steph’s Digital Ambassador (08:28):
Or try to build it yourself without the team [00:08:30] or budget? Create your own little walled garden maybe. But is it feasible?
Andrew’s Mindmate (08:33):
It's a tough balancing act. And then there's the human factor. Getting people retrained, getting them to actually use the new tools.
Steph’s Digital Ambassador (08:39):
Nothing kills adoption faster than making people feel like they have to completely relearn their job.
Andrew’s Mindmate (08:44):
So true. All these complexities, resources, integration, security, adoption, they create another execution gap. Even if you know what you want AI to do, getting it done is hard.
Steph’s Digital Ambassador (08:56):
So the solution here is strategic partnership.
Andrew’s Mindmate (09:00):
[00:09:00] That's where the consulting for equity model really shines. Again, it's about sharing the risk and the reward. Aligning purpose and principles.
Steph’s Digital Ambassador (09:07):
It's more than just hiring a vendor
Andrew’s Mindmate (09:08):
Much more. They bring expertise, yes, but also sweat equity. It eases the upfront cash burn. They fill those talent gaps, the AI engineers, the data people you don't have.
Steph’s Digital Ambassador (09:20):
And because their payout is tied to your success,
Andrew’s Mindmate (09:22):
They're laser focused on ROI that ROI philosophy. They want impactful projects that move the needle.
Steph’s Digital Ambassador (09:29):
Like automating invoicing [00:09:30] or improving sales lead qualification. Maybe things with clear payback.
Andrew’s Mindmate (09:34):
Exactly. And they bring best practices for implementation. Maybe setting up an internal AI committee, piloting features, carefully getting feedback, ensuring it integrates smoothly.
Steph’s Digital Ambassador (09:43):
And they can help with security too. Building those secure walled gardens if needed.
Andrew’s Mindmate (09:48):
Yes. And give unbiased advice on buy versus build because they aren't tied to selling a specific product. If you use a third party tool, they help safeguard your data.
Steph’s Digital Ambassador (09:58):
So it's that ongoing co-ownership. [00:10:00] It reduces the anxiety around execution.
Andrew’s Mindmate (10:03):
It really does. Ties their success directly to yours. Ensuring the AI actually delivers value for mid-size firms. It can be a game changer for getting complex AI projects off the ground.
Steph’s Digital Ambassador (10:12):
Okay. Final pain point. This one feels bigger. Maybe more strategic. It's the hesitation itself. The fear of being left behind while this AI transformation happens.
Andrew’s Mindmate (10:23):
Yeah, the inaction risk. It's real.
Steph’s Digital Ambassador (10:25):
Yeah.
Andrew’s Mindmate (10:26):
You see stats like what, over 85% of Fortune five hundreds using AI
Steph’s Digital Ambassador (10:29):
And even small [00:10:30] businesses reporting big efficiency gains like 86% and huge optimism, 91% from using ai
Andrew’s Mindmate (10:36):
Plus that ROI figure we mentioned nearly $4 back for every $1 spent on ai. It's compelling.
Steph’s Digital Ambassador (10:41):
So while you're hesitating, others are transforming, improving employee experience, customer engagement processes, innovation.
Andrew’s Mindmate (10:48):
Exactly. And things that make your firm unique today might become baseline expectations tomorrow because AI enables them more easily elsewhere.
Steph’s Digital Ambassador (10:55):
That's a scary thought. And if you do nothing, your clients might drift. The AI [00:11:00] enabled competitors
Andrew’s Mindmate (11:01):
Or your own employees start using shadow AI tools just to keep up, which creates its own risks.
Steph’s Digital Ambassador (11:06):
Plus the early movers get to influence the rules of the game,
Andrew’s Mindmate (11:10):
Right? So the dilemma is stark, adopt wisely now or risk becoming irrelevant. It's a psychological pain point as much as a strategic one, that fear of missing out, but applied to your entire business.
Steph’s Digital Ambassador (11:22):
So the desired solution isn't just do ai, it's how to overcome that inertia.
Andrew’s Mindmate (11:27):
It's an urgent but pragmatic embrace of the [00:11:30] opportunities. Inaction is the biggest risk. Now the key is a controlled, value-driven start.
Steph’s Digital Ambassador (11:35):
Create internal urgency, but have a sensible plan.
Andrew’s Mindmate (11:38):
Yes. Develop a roadmap. We see about a third of small businesses planning to prioritize AI investments. Identify those high impact but achievable early wins
Steph’s Digital Ambassador (11:46):
Like the AI assistant for reports or AI for support tickets,
Andrew’s Mindmate (11:50):
Things like that. Quick wins that align with strategy and where you can measure success
Steph’s Digital Ambassador (11:54):
And that builds momentum.
Andrew’s Mindmate (11:55):
Exactly. Early success builds confidence and provides learnings for bigger projects down the line.
Steph’s Digital Ambassador (12:00):
[00:12:00] And the partner role here,
Andrew’s Mindmate (12:01):
Again, invaluable, helping select those urgent but realistic use cases steering you away from the AI hype cycle towards tangible value. Bringing that external perspective,
Steph’s Digital Ambassador (12:13):
Turning analysis into action may be based on what worked elsewhere,
Andrew’s Mindmate (12:16):
Right? And using agile methods, implement iteratively, measure, refine, pilot things with small groups first,
Steph’s Digital Ambassador (12:25):
Leadership needs to really champion this though.
Andrew’s Mindmate (12:27):
Absolutely. And communicate it. Tell your clients [00:12:30] how you're using AI to serve them better. That itself is a competitive advantage.
Steph’s Digital Ambassador (12:34):
Thinking about those big AI outcomes, employee experience, customer engagement processes, innovation, frame the projects that way.
Andrew’s Mindmate (12:41):
Yes. Frame them as opportunities to improve in those key areas. So
Steph’s Digital Ambassador (12:45):
Urgent strategic adoption, lets mid-sized firms compete.
Andrew’s Mindmate (12:49):
It allows them to punch above their weight. Today's learners can be tomorrow's leaders in this space.
Steph’s Digital Ambassador (12:53):
And that consulting for equity model helps balance the urgency with prudence.
Andrew’s Mindmate (12:58):
It pushes for progress, but [00:13:00] mitigates risk. It provides the expertise in shared investment to move forward confidently.
Steph’s Digital Ambassador (13:05):
Okay. So wrapping this up, it feels like mid-sized knowledge firms are truly at a crossroads.
Andrew’s Mindmate (13:10):
Definitely a critical juncture. Huge opportunities, but real challenges too.
Steph’s Digital Ambassador (13:16):
But the key message seems to be that these challenges aren't insurmountable,
Andrew’s Mindmate (13:19):
Not at all, but the right strategy, the right support, they can be overcome.
Steph’s Digital Ambassador (13:24):
And that consulting for equity partnership keeps coming up as a powerful enabler.
Andrew’s Mindmate (13:28):
It does. Gaining [00:13:30] a co-owner who's invested in your success brings expertise and shares the risk. That's a compelling proposition.
Steph’s Digital Ambassador (13:37):
So firms that combine their own internal commitment, their own sense of purpose with that kind of expert partnership seem best placed.
Andrew’s Mindmate (13:44):
A combination looks very strong. And remembering that potential ROI nearly four bucks back for every dollar invested. The incentive to act strategically is huge.
Steph’s Digital Ambassador (13:53):
So for everyone listening, the encouragement is maybe to see AI less as a threat and more as this massive opportunity.
Andrew’s Mindmate (13:59):
And to be [00:14:00] open to bold ways to seize it like these innovative partnership models.
Steph’s Digital Ambassador (14:04):
Because with a smart strategy grounded in your firm's principles and the right allies,
Andrew’s Mindmate (14:09):
Mid-size knowledge firms can do more than just survive. They can genuinely thrive and lead in this age of ai.
Steph’s Digital Ambassador (14:16):
It really seems like innovative growth strategies. The kind you see highlighted in insightful analysis perhaps from sources like team lawless.com are absolutely key right now.
Andrew’s Mindmate (14:26):
Couldn't agree more. It's about navigating this new landscape with purpose [00:14:30] and the right support structures.
