Much of the UK’s enterprise AI spending is wasted, with more than £66 billion annually flowing to consultancies delivering subpar results. Valliance has launched today, promising to change that. Backed by a $15 million investment from Siguler Guff & Company, they promise to revolutionise how businesses extract real value from artificial intelligence.
The billion-pound consultancy problem
Traditional consultancies are failing enterprises at an alarming rate, despite commanding enormous budgets. Research has found that large businesses — those spending more than £20 million on IT — spent an average of £39.2 million on AI in the past year, with consultant fees accounting for £8.4 million per organisation.
Across the 8,335 UK businesses with big IT budgets, that equates to £326.8 billion on AI last year, with £66.1 billion of that going to external consultants — mostly without measurable return on investment.
Among the largest firms — those investing over £100 million in technology — consultancy costs averaged £11.3 million annually, more than a third of all enterprises spend on all technology.
Perhaps most concerning, only 45% of AI projects have success metrics established from the outset, making true performance evaluation nearly impossible. When asked why AI projects fail, 30% of respondents cited the most fundamental problem: focusing too much on technology, and not enough on business outcomes.
A new model for AI success
Valliance’s founding team brings decades of experience, witnessing legacy consultancy failures firsthand. Led by Tarek Nseir, who previously founded TH_NK and delivered groundbreaking digital transformation for clients including ASOS and Aston Martin, the team includes Anita Rajdev, a seasoned commercial leader with expertise in enterprise partnerships, and Rad Parvin, formerly founder of Just-BI, who has led global data strategies for brands like Nike and Shell.
The firm’s radical approach abandons the traditional billable hour model in favour of value-based pricing. “We’re not here to sell customers a dream on paper before skating away,” explains Rajdev. “We believe in shared success, and that means shared investment of our time. Customers pay us when we’ve created value in live — no billable hours, no bloated teams. Just a focus on the end goal and how we can implement AI to get our clients there.”
This approach addresses what Parvin identifies as a fundamental flaw in traditional consulting: “Advice from traditional consultancies is never impartial. You don’t know if the guidance you’re being given is right for your business, or theirs. And they lack the skills and expertise to really understand the AI revolution—you’re effectively paying for their transformation while trying to navigate your own.”
Industry backing for transformation
The venture has attracted significant industry support, with Shaun Khubchandani and Justin Eskind from Siguler Guff joining Valliance’s board. Khubchandani sees Valliance as addressing a critical market need: “Enterprises are under increasing pressure to realise measurable returns on their AI investments, and legacy models built around billable hours simply aren’t fit for that purpose. Valliance’s value-based approach and technical depth align well with how the market must evolve.”
Eskind echoes this sentiment, noting the urgency of the moment: “We’re excited to be backing the Valliance team in their bold mission and believe AI’s tectonic shift across technology demands this new model for implementing it—and a team that recognises the time to build AI in production is now.”
The firm has already assembled a team of 15 experts, including Dom Selvon, one of the founders of the composable architecture movement and longtime member of MACH Alliance’s board. With three clients already signed, Valliance is positioning itself as the platform of choice for enterprises serious about AI implementation.
As Nseir concludes: “The world is in an AI arms race. Leaders who want to ensure success for the next decade must derive value from the technology now or be left behind—and they need the right advice and guidance to cut through hype and achieve this goal. Valliance is made for this moment.”
With traditional consultancy models bleeding businesses dry and delivering questionable results, Valliance’s value-driven approach may well represent the industry’s necessary evolution.
