Anthropic Plans European AI Consultancy

Anthropic plans to launch an AI consultancy in Europe after partnering with London-based private equity firm Hg, a move disclosed last week. Consultants told City A.M. the plan was unsurprising, as the sector had been expecting technology companies to enter advisory services. The venture comes as traditional consultancies pivot toward technology work.

KPMG, EY, PwC and Deloitte reported roughly 2 per cent UK revenue growth over the last financial year, while general consulting and advisory were in the red. Mandatory regulatory work and specialised AI and technology transformation advice drove growth. Boston Consulting Group reported in April that its global firm reached $14.4bn (£10.6bn), a single-digit increase over the previous year, and credited AI for the small growth. The article says firms including Accenture, Capgemini and IBM have positioned themselves as technology firms, competing to bridge complex technology and corporate clients.

Anthropic aims for the consultancy arm to generate revenue and offset high data centre, computing and infrastructure costs. Its anticipated market value ahead of an IPO is between $1.5tn and $2tn. On Monday, it disclosed $16.3bn in revenue for the six months to June and a net loss of $80.7bn over that period, including around $72bn in non-cash accounting adjustments linked to convertible debt and financing instruments. Consultant James Ransome said Hg’s portfolio companies could provide an immediate client base, helping the venture demonstrate results and build credibility. Q5 co-founder Olly Purnell questioned whether private equity’s focus on EBITDA results and exits after three to five years fits consulting’s need for long-term client relationships.

Technology companies have established consulting practices before, including enterprise resource planning providers in the 1990s, to improve implementation quality and address skills shortages. Source Global Research founder Fiona Czerniawska said Anthropic appears to be betting on demand for AI consulting and on placing AI engineers inside client organisations. She also warned that a technology vendor’s consultancy may struggle to offer independent advice to senior executives and could serve as an in-house sales tool. Consultants stressed that client relationships, human interaction and the ability to transform multinational businesses remain important.

Experts said the move adds a competitor, but the sector is not alarmed. Shares in listed firms such as Capgemini and Accenture did not fall much over the weekend, unlike after Anthropic launched a legal tool earlier this year, when shares in Europe’s biggest legal software groups tumbled in the following weeks. The article presents the London-based consultancy as a potential positive for the UK market, saying Anthropic sees Britain as a lucrative market.

Anthropic plans to launch an AI consultancy in Europe after partnering with London-based private equity firm Hg, a move disclosed last week. Consultants told City A.M. the plan was unsurprising, as the sector had been expecting technology companies to enter advisory services. The venture comes as traditional consultancies pivot toward technology work.

KPMG, EY, PwC and Deloitte reported roughly 2 per cent UK revenue growth over the last financial year, while general consulting and advisory were in the red. Mandatory regulatory work and specialised AI and technology transformation advice drove growth. Boston Consulting Group reported in April that its global firm reached $14.4bn (£10.6bn), a single-digit increase over the previous year, and credited AI for the small growth. The article says firms including Accenture, Capgemini and IBM have positioned themselves as technology firms, competing to bridge complex technology and corporate clients.

Anthropic aims for the consultancy arm to generate revenue and offset high data centre, computing and infrastructure costs. Its anticipated market value ahead of an IPO is between $1.5tn and $2tn. On Monday, it disclosed $16.3bn in revenue for the six months to June and a net loss of $80.7bn over that period, including around $72bn in non-cash accounting adjustments linked to convertible debt and financing instruments. Consultant James Ransome said Hg’s portfolio companies could provide an immediate client base, helping the venture demonstrate results and build credibility. Q5 co-founder Olly Purnell questioned whether private equity’s focus on EBITDA results and exits after three to five years fits consulting’s need for long-term client relationships.

Technology companies have established consulting practices before, including enterprise resource planning providers in the 1990s, to improve implementation quality and address skills shortages. Source Global Research founder Fiona Czerniawska said Anthropic appears to be betting on demand for AI consulting and on placing AI engineers inside client organisations. She also warned that a technology vendor’s consultancy may struggle to offer independent advice to senior executives and could serve as an in-house sales tool. Consultants stressed that client relationships, human interaction and the ability to transform multinational businesses remain important.

Experts said the move adds a competitor, but the sector is not alarmed. Shares in listed firms such as Capgemini and Accenture did not fall much over the weekend, unlike after Anthropic launched a legal tool earlier this year, when shares in Europe’s biggest legal software groups tumbled in the following weeks. The article presents the London-based consultancy as a potential positive for the UK market, saying Anthropic sees Britain as a lucrative market.