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Amazon’s cloud reboot shows the future of consulting in the AI era

My youngest daughter, Tessa, just accepted an internship with PwC in San Francisco. We’re overjoyed she’ll be home for a few months after heartlessly leaving us 18 months ago to study accounting at Wake Forest in North Carolina.

What surprised me: her internship isn’t until summer 2027. I had no idea these things were locked in so far ahead.

With AI reshaping so much, I can’t help wondering what consulting will look like by the time she starts. This week brought some clues, via another megascoop from Business Insider’s Eugene Kim.

He reported on ProServe, Amazon’s in-house cloud consulting arm. The unit influences more than $10 billion in annual revenue for AWS. Read the full story, but here’s the big takeaway: AI is driving radical change inside ProServe, offering a glimpse of where the broader consulting industry may be headed.

I asked Polly Thompson, who covers the Big Four at Business Insider, for her view:

  • This confirms many trends I’ve heard from these firms. How to deliver value and how to charge for it in the AI era — that’s the big question.
  • ProServe focuses on technical consulting for AWS clients, while the Big Four span audit, tax, risk, and strategy. That diversification could make them more resilient. AI isn’t the only force at work: global instability is increasing demand for complex risk consulting, for example.
  • AI’s ultimate impact on consulting remains unclear. Firms are embracing the technology and adapting their business models, but unevenly.
  • Hiring shows the divide. McKinsey, Accenture, and PwC are reducing hiring. EY is generally increasing entry-level hiring. KPMG isn’t making hiring changes.

Sign up for BI’s Tech Memo newsletter here. Reach out to me via email at abarr@businessinsider.com.




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A Google Cloud exec shares the two ways she evaluates creativity in job interviews

Google executive Yasmeen Ahmad is looking for something specific when hiring engineers — and it’s not just technical know-how.

Ahmad told Business Insider that the typical software engineering interview used to focus on detailed coding tests and test suites. Now, as she hires for a forward-deployed engineering team, which will work with customers, she said she’s prioritizing people with fresh ideas.

The strongest candidates are “able to think outside the box,” Ahmad, director of Google Cloud’s data cloud, said. “They’re able to think outside the frame of how we would have normally described a problem.”

The executive added that candidates who take a traditional approach to engineering aren’t performing as well in her team’s interviews. The ideal candidate nowadays, she said, can demonstrate creative problem-solving by using AI to reimagine traditional processes. She said she evaluates that type of thinking in two ways:

1. Constant experimentation

Ahmad said she looks for candidates who are constantly “tinkering” with new tools. That gives her an immediate signal that they’re creative thinkers.

“When you’re interviewing them, they’re naturally immediately talking about, ‘oh, last week I had tried AI in this context, and this is how it made me better at doing my job in this way,'” Ahmad said.

These candidates aren’t trying new tools because their boss told them to or because it’s the new cool thing to try, she said.

“They’re the early adopters,” Ahmad said.

Tech executives have told Business Insider that side projects are becoming increasingly common for candidates to demonstrate their aptitude in interviews. However, Ahmad said candidates don’t need to have a GitHub repository of projects they’ve worked on in their spare time.

“It doesn’t have to be pet side projects, because people are busy,” Ahmad said, adding that workers can experiment on the job by trying out new ways to speed up their work.

2. Scenario testing

AI is being used more often throughout the interview process — in some cases, illicitly by job seekers, and in others, as a way for employers to test candidates’ AI capabilities. As these tools reshape hiring, Ahmad said scenario-based testing has become central component to the interview process, giving hiring managers a better way to assess creativity.

Ahmad said she’ll ask candidates how they would approach a scenario involving AI tools in an industry where they have no domain knowledge.

For example, if the example related to healthcare, a traditional candidate might say that they would take all the patients’ unstructured PDFs, feed them into a single LLM prompt, and ask it to generate a summary for the doctor. That would be a “massive liability,” Ahmad said, because in that scenario the candidate assumes AI can inherently understand the timeline of events or clinical context of an image by looking at it.

Ahmad said she’s looking for a candidate who can “find solutions in a way that breaks the chains of how that workflow process has traditionally gone.” So someone might suggest building the semantic context for the imaging data before the model sees it. Next, they would build a specific framework to ensure the agent is operating in the right time frame of data. Then, they would recommend designing a multi-step process that includes a continuous evaluation loop.

“We aren’t just hiring people to write prompts,” Ahmad said. “We are hiring people who can foresee how a model might silently fail in a high-stakes environment, and who know how to build the automated evaluation loops to catch it before it does.”

She said asking these sorts of questions to vet creativity is especially useful as AI transforms the software engineering industry by automating core parts of the job.

“We’re seeing the human role is evolving to more of an orchestrated role,” Ahmad said. “So rather than having to write all of the detailed code, it’s ‘how do I actually express my intent to a multi-agent system now and have that multi-agent system execute on that intent?'”




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Microsoft says OpenAI is driving 45% of the backlog for Azure cloud computing

Microsoft is facing capacity constraints, and OpenAI is driving a large portion of the backlog in its cloud computing business.

The company said its backlog in commercial bookings, a metric referred to as remaining performance obligations, ballooned 110% year over year to $625 billion when it reported earnings for the second quarter on Wednesday.

OpenAI accounts for roughly 45% of those commitments, Microsoft revealed. The company did not say how much OpenAI contributed during the previous quarter.

Some Wall Street analysts on the call expressed concerns about Microsoft’s dependency on OpenAI.

CEO Satya Nadella said acquiring more Azure clients is important to the tech giant, but it can’t come at the expense of neglecting its other services.

“If you think about it, acquiring an Azure customer is super important to us, but so is acquiring an M365 or a GitHub or a Dragon Copilot, which are all, by the way, incremental businesses and TAMs for us,” Nadella said during Microsoft’s second-quarter earnings call. “And so we don’t want to maximize just one business of ours.”

Shares of Microsoft fell more than 6% in after-market trading on Wednesday, even as the tech giant posted an overall earnings beat.

Morgan Stanley’s Keith Weiss said during the call that some on Wall Street may be spooked by slower growth in overall Azure revenue and the increase in capex spending. Microsoft’s capital expenditures rose 66% year over year to $37.5 billion in the second quarter, another record for the company and testament to the sheer amount of money tech companies are spending amid the AI race.

CFO Amy Hood said that Microsoft has to look at many different areas when it allocates the GPUs and CPUs that come online as a result of its capex spending, including investing in the growth of first-party apps like Microsoft Copilot, devoting GPUs to research and development, and the talent they’ve acquired.

“You end up with the remainder going towards serving the Azure capacity that continues to grow in terms of demand,” she said.

Microsoft is not alone in facing capacity issues.

Executives at OpenAI, which has pledged to spend $250 billion on Azure services, have repeatedly said the startup is held back by a lack of compute, forcing tough trade-offs between product and research.

Wednesday’s earnings mark the first quarter since OpenAI completed its restructuring, which included a new agreement with Microsoft, the startup’s largest investor. Microsoft owns 27% of the public benefit corporation.

“It’s a great partnership,” Hood said of Microsoft’s relationship with OpenAI. It’s allowed us to remain a leader in terms of what we’re building and being on the cutting edge of app innovation.”




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