AI reshapes consulting’s future
The consulting industry is quietly reshaping itself—less like a pyramid, more like a diamond.
For decades, the largest firms relied on a model built around armies of junior consultants handling most client work. That structure is now changing. Many firms are adopting a shape dominated by mid-level, highly skilled professionals, augmented by a range of digital tools. The driving force behind this shift is artificial intelligence.
AI as both threat and opportunity
Consulting has long thrived on tasks AI handles well—synthesizing data, drafting reports, and analyzing trends. This makes the industry especially vulnerable to disruption. Yet the technology has so far acted as a lifeline. A survey revealed that 67% of industry leaders expect AI to be the biggest driver of demand growth over the next three years.
Matthias Tauber, BCG’s managing director for EMEA and South America, stated that firms are still learning how to turn AI’s potential into profit. “People see what these systems can do,” he said, “but making money from them isn’t straightforward.” Efforts remain focused on closing that gap.
The change isn’t only about efficiency. Clients are evolving as well. Some now arrive with problems already processed by large language models, requiring consultants to demonstrate value beyond what AI can produce.
Smaller firms, sharper edges
The industry’s largest players aren’t the only ones adapting. A wave of boutique firms is emerging, offering leaner operations and faster AI adoption. Unity Advisory, launched this summer with up to $300 million in backing, is one example. Led by former PwC and EY executives, it focuses on the office of the CFO, where specialized expertise and speed could outperform larger competitors.
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Hywel Ball, a former EY UK chair, recently joined the boards of two AI-focused boutiques. “If you’re very large,” he said, “driving cultural change at scale is difficult.” Smaller firms, however, can adopt new tools without the inertia of a massive workforce.
The hiring market shows this change. After years of cuts following a pandemic-era boom, vacancies in accounting and consulting rose 18% in the first half of this year. Tauber noted that BCG sees a strong recruitment environment, with around 100 applications for every position filled—matching pre-pandemic levels.
The industry’s transformation isn’t happening in isolation. Demand has softened since the pandemic surge, and governments in the U.S. and U.K. have examined consulting spending. Yet the trend isn’t universal: in the U.K., Labour’s first year in office saw a £150 million increase in management consulting contracts compared to the previous year.
The future of the workforce remains uncertain. Whether AI will shrink the industry or redefine it depends on how quickly firms can turn technology into a competitive advantage.
The pyramid model is fading.
