Market Sizing

Hi there,

I would be happy to share my thoughts on your question:

• First of all, can you please provide a proposal that I can review? There is no point in coaches presenting their approaches when it is you who is currently preparing for the interviews and wants to learn how to do it.
• Moreover, however, please keep in mind that except for Bain in the UK and few smaller consulting firms, most consulting firms have not used standalone market size estimations for a long time. While this does not mean it never happens, this type of case study question is typically not be very meaningful for both the candidate and interviewer, as only a few skills are being tested.

You can find more on this topic here: How to succeed in the final interview round.

If you would like a more detailed discussion on how to best prepare your application files, for your upcoming pre-interview assessments and/or interviews, please don't hesitate to contact me directly.

Best,

Hagen

Hi, 

AI is very broad, and it's unlikely you'll be asked to size the entire industry without further clarification. But if you are, here’s how I would approach it:

1. Clarify what you are sizing: AI covers a wide range of technologies: cloud-based AI services, embedded AI in hardware, automation tools, predictive analytics, natural language processing, and more. Try to narrow it down by focusing on a specific use case or segment, so your analysis can be more concrete.

2. Choose your approach: I would go for the demand side approach, as it allows to focus on customers' behaviors and drivers. 

3. Identify and prioritize your customers:  End-users could be individuals, businesses, or government entities. You can focus on businesses and assume they represent a certain percentage of total demand. You can also segment businesses by size (mature vs growth phase). 

4. Identify the main drivers: Drivers can include industry type, digital maturity, tech adoption rate, regulatory factors, etc. Discuss these different drivers with your interviewer and come up with / validate your assumptions.  

5. Run your calculation

One final note, assumption-making is never black or white, the numbers don't really matter as long as they are logical, and you can back them up. Also, this is a tough question, especially if no data is provided from the interviewer, but don't worry, interviewers know that, and they will step in and support if you're going in the right direction.  

I hope this helps, it is a high-level approach because the question itself is broad. 

If you want to master the Market Sizing question and solve any MS question across industries, please check my book "Market Sizing Like a Pro" in the "Resources" section, or feel free to reach out with any question!  

Hi there!

I'm sure ChatGPT can provide some sample answers, but you might get more out of the Q&A if you suggest an answer and we give you feedback. If you'd like to do that, feel free to repost it.

Best,
Cristian

Hey, in order to answer, we’d need much more detail. What part of the AI industry are you trying to size (e.g., revenue from LLM, applications, infrastructure etc.)

If you have a clear sense of the above, I recommend using ChatGPT to help you problem-solve (as Cristian suggested)

Hey there :)

I would say to start by defining what part you’re estimating: AI software, services, hardware, or a specific use case like generative AI or AI in healthcare. Then use a top-down or bottom-up approach: either start with a global tech market and estimate the AI share, or start with # of businesses/users and average spend on AI solutions. Public reports from McKinsey, BCG, or Statista can give solid benchmarks to sanity-check your logic.

Happy to walk you through an example if you want!

Best,
Alessa :)