Statement
Using LLMs Instead of Government Consulting
- The U.S. government spends hundreds of billions of dollars annually on consulting services.
- Industry observers cite three primary drivers for a potential shift away from current government consulting models:
- Rising political pressure to eliminate wasteful spending on consulting contracts.
- A systemic reliance on custom-built software for all government operations, with companies like Deloitte and Accenture serving as primary vendors.
- The maturation of Large Language Models (LLMs), which are now capable of performing tasks currently outsourced to consulting firms.
- Recent funding activity has targeted startups in two specific sectors:
- Companies assisting startups in achieving FedRAMP approval to sell products to the government.
- Firms helping the government reduce regulation and utilize LLMs to validate the legality of new policies and laws.
- The speaker identifies a strategic opportunity to fund startups developing LLM software to displace traditional government consulting work.