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AI synthetic audiences are already here and poised to upend the consulting industry

Our take

The consulting industry is on the brink of a transformation, as AI synthetic audiences emerge to challenge traditional methods. These digital representations of people enable rapid, cost-effective surveys, shifting the landscape of market research. While speed and affordability are appealing, questions about accuracy and data security linger. As established firms and agile startups navigate this evolving terrain, the future of consulting may not be a battleground but rather a collaborative journey.
AI synthetic audiences are already here and poised to upend the consulting industry

The emergence of synthetic audiences represents a significant turning point in the consulting industry, particularly for firms reliant on understanding and analyzing human behavior. As outlined in the article, this technology allows for the creation of digital personas that can be surveyed almost instantaneously and at a fraction of the cost of traditional methods. This shift not only challenges established players like McKinsey and Nielsen but also presents a compelling opportunity for innovation in market research. For organizations grappling with the slow pace of conventional research, the potential of synthetic audiences offers a glimpse into a future where insights can be gleaned rapidly and affordably, aligning with the pressing demands of today’s fast-paced market. This is reminiscent of the challenges highlighted in other recent discussions, such as in "Market research is too slow for the AI era, so Brox built 60,000 identical 'digital twins' of real people you can survey instantly, repeatedly" which emphasizes the urgency for speed in understanding consumer behavior.

However, the allure of synthetic audiences comes with its own set of challenges. While the efficiency of gathering data is undeniable, questions surrounding the accuracy of these AI-generated insights remain pertinent. The article presents a balanced view of the technology's capabilities, noting that while synthetic audiences can achieve a high degree of accuracy in simulating human responses, they cannot replicate the nuanced understanding that comes from human insight. This raises critical questions for organizations: is the speed of data collection worth the potential trade-off in depth and reliability? As companies increasingly rely on data-driven decision-making, they must navigate these complexities carefully, weighing the benefits of rapid insights against the need for accuracy and contextual understanding.

Moreover, the emotional response of potential users, particularly regarding data security and privacy, underscores a broader hesitance within the industry to fully embrace AI-driven technologies. The article aptly points to the common concern of whether AI will compromise sensitive data, a fear that can hinder innovation and adoption. As organizations continue to store vast amounts of sensitive information in cloud services, it is crucial for them to understand that many of the same companies providing AI tools also have stringent policies to protect user data. This paradox illustrates a larger narrative within the industry: the need for trust in technology must evolve alongside its application in business practices.

Looking ahead, the relationship between traditional consulting firms and emerging AI-driven startups may not be a zero-sum game. The article suggests a possible collaboration that could harness the strengths of both worlds. As firms like WPP cultivate partnerships with nimble startups, the potential for a more integrated approach to market research may emerge. The question now becomes: how will this evolving landscape shape the future of consulting? Will we see a hybrid model that combines the speed and efficiency of synthetic audiences with the strategic depth and insight of traditional research methodologies? As we observe these developments, it will be fascinating to see how organizations adapt to leverage the best of both worlds in their quest to understand and engage with consumers effectively.

There is a war brewing between AI and consulting.

Akin to an armies slow march towards the castle, a new technology is coming to dethrone the expert guessers of Mckinsey, Nielsen, Gartner, Publicis and the rest. Any consulting that involves analyzing people (think all of marketing, research, polling, etc.) will have to reckon with the technology of “synthetic audiences”.

Synthetic audiences aim to generate digital versions of people that can then be surveyed almost instantly and affordably, but not as accurately. Think Tamagochi but with people.

By prompting AI with information about a person, we ask AI to get in their shoes, simulate the thoughts, behaviors, priorities and decisions of real world humans. We can also invent non-specific placeholder people or personas and survey them as though they are real. Various firms have already fielded products in these domains, including startups Electric Twin, Artificial Societies, and Aaru, and even the century-old Dentsu.

What used to take 4 months to survey people, plus two months to create a nice PowerPoint presentation of findings at a total cost of thousands or even tens of thousands, now takes two minutes and costs only a few dollars.

It may seem like I’ve picked my winner. But in this war of tribes, I’m a Romeo, caught between the two warring houses. I work for a large incumbent in this space. From 2023-2025 while working at the London headquarters of WPP, I built similar tools for numerous Fortune 500’s and advised many New York University researchers on the subject.

Companies like WPP with head counts and revenues that rival the populations and GDP’s of small European nations need startups for their speed and high margins, while startups need our distribution.

My advice has always been for unity between these tribes. Considering WPP is partnering with numerous startups, is working tirelessly in building our own tools and building deep connections with hyper scalers, it’s possible I mislead you with the war analogy. This may be a love story after all. But destiny’s bottle of poison is in our hands. These next few years are pivotal and formative.

The future will ultimately be determined by the buyers of these studies. Fortune 500’s, with the largest appetite for market research, often hesitate to include synthetic audiences in their diet. The first question I’m asked in any pitch is "will AI steal my data?" I find this question to be an emotional response. It seems to me like most AI fears are remnants of a 2022 LinkedIn post that burrowed itself into our collective consciousness.

I generally respond to this question with another: “Do you use Microsoft Teams?”

The answer is often "yes." Almost every enterprise stores sensitive data in a cloud service that Google Amazon or Microsoft provides. These are the same companies that provide enterprise AI services, which state in their terms and conditions that they won’t train models with your data. Now, believing this statement is optional, but for that matter believing is voluntary for all things.

Criticisms of accuracy on the other hand, are harder to dispute. The famed venture capital firm Andreessen-Horowitz (a16z) titled its analysis of this budding tech scene as “Faster, smarter, cheaper”.

As the hopeful mediator in this war, I agree synthetic research is faster and cheaper, but is it smarter? Not sure. A seminal paper from Stanford by Park et al. established a benchmark in 2024 proving that AI can simulate human responses to surveys with an average of 85% accuracy.

In fact for certain portions of the general social survey, they replicated answers with more than 90% accuracy. When the model is provided relevant information and is given rich context (like a mini biography of the person) it can guess their actions and thoughts very accurately.

But no prediction can be 100% accurate. A future where human propensities are modeled even better than humans can express their own desires is a possibility. Maybe we’ll live in a future where the movie Minority Report becomes reality. However, this future is too distant to warrant the attention of a business reader and is better suited for Tom Cruise and Steven Spielberg.

What is more interesting to me is what this technology can do at lower accuracies. In my private tests, I’ve seen that with very simple information about a person, such as their age, neighborhood and gender, certain behaviors can be modeled with 72% accuracy.

An argument can be made that these are easy-to-make predictions. Predicting whether a married person will have children is low stakes. This can’t completely replace the unique insight of a strategist.

However, considering how elusive it is to understand and model people. A solution that’s better than random and so attainable poses to make an impact.

Think about the immense scale. The human mind works with a small range of values. We understand when something is twice as fast but we can’t comprehend when something is 175,200 times faster. All of a sudden a journey that took several days becomes becomes several hours, bridges get built, gas stations, entire industries are started.

When improvement isn’t marginal but exponential, it has positive externalities that are impossible to predict even by this article.

What I suggest for all of us is to eat the popcorn and watch the show. No matter what happens, it’ll be fun.

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