Klarus launches AI consultancy to fix weak returns

Klarus has launched as an AI consultancy led by former EY and Accenture executive Frank O'Dea. It aims to tackle the weak returns many companies are seeing from AI projects.

The London-based firm is entering a market where spending on generative AI has risen, but many companies still struggle to move projects beyond the trial stage. Klarus pointed to research from the Massachusetts Institute of Technology suggesting that as many as 95% of enterprise generative AI initiatives fail to deliver measurable impact.

O'Dea is chief executive of the new consultancy. He was previously chief transformation and innovation officer at EY Ireland and a managing director at Accenture, where he led communications, technology and media work in the UK.

At EY and Accenture, O'Dea led divisions with profit and loss responsibility of up to $800 million, according to Klarus. The firm also said he played a role in Microsoft's expansion in Europe.

Market Gap

Klarus is building its business around a common complaint from corporate buyers of AI services: access to tools is no longer the main obstacle, but implementation remains difficult. Many companies already have software platforms and pilot schemes in place, yet lack the internal skills to embed AI in day-to-day operations, change workflows and track financial results.

The consultancy plans to use a network model rather than a traditional staffing structure. Instead of maintaining large teams of junior consultants, it will use senior specialists chosen for their sector and technical expertise on specific assignments.

That approach is tied to an outcome-based fee structure. Klarus wants to link its work more closely to delivery and business results, while giving clients clearer ownership and governance over AI projects.

"While AI is set to disrupt every business sector and will undoubtedly reveal a vast landscape of new opportunities, most organisations are still struggling to translate its potential into tangible business results. However, the journey to successful AI adoption must be safe, ethical and results-oriented. The senior talent from the Klarus network brings both deep business and AI expertise, ensuring AI is implemented to drive the right outcomes, in the right way and to deliver immediate value," said O'Dea, chief executive of Klarus.

Early Work

Klarus says it is already working with enterprise and mid-market clients, including family-owned businesses, private equity-backed companies and listed groups, although it did not name them.

One recent project involved an AI-based invoice processing system for a hospitality client, which Klarus said cut offshore staffing costs by 40%.

The firm also outlined a business case in which it identified several opportunities for AI-driven savings and revenue growth. These included freeing managers for higher-value work, improving insight to support revenue growth, sharpening forecasting to reduce staff costs, retiring legacy systems to cut licence fees and tightening controls to lower spending.

Backing And Partnerships

Klarus has secured initial funding in a round led by Crownway Investments. The money will be used to expand its network of experts and its consulting platform.

Alongside its launch, the firm said it has joined UKAI, the trade association for UK AI businesses. Its current partner network includes ServiceNow, which provides workflow software used by large organisations.

The wider group also includes Chapter 1, a search business focused on leadership hires for transformation programmes and consulting firms. That structure suggests Klarus is seeking to combine advisory work with access to senior operators and executives for large-scale change projects.

The launch comes at a time when consulting firms, software vendors and specialist boutiques are all competing to shape the next phase of AI spending. Corporate clients are under pressure to show that investments in generative AI can deliver cost savings, revenue gains or productivity improvements, rather than remain isolated experiments.

For smaller specialist firms, that creates an opening if they can show results faster than larger rivals. Klarus is betting that companies will favour more focused advisory work from experienced practitioners over broad programmes delivered by large consulting teams.

O'Dea's move from large professional services firms to a smaller advisory model also reflects a broader market shift. As companies scrutinise spending more closely, buyers have become more resistant to open-ended transformation work and more willing to demand a direct link between fees and outcomes.

Klarus's central argument is that the main challenge in AI is no longer enthusiasm or access to technology, but turning experimentation into operational change that affects the bottom line. Whether that translates into sustained demand will depend on whether firms such as Klarus can show that AI projects can move beyond pilots and deliver measurable returns.