How Global Events Shape Consulting Practices

For years, the US federal government was a cash cow for the big consulting firms—stable and largely insulated from the volatility seen in private markets. But that era is rapidly coming to an end. Accenture is the latest to feel the impact: $700m deals scrapped, new procurement frozen, and revenues sliding. The message is clear—the status quo is under serious review. Accenture’s leadership continues to talk up “major opportunities” to support government modernisation, but the numbers tell a different story. When 8% of global revenue starts to vanish—and 10 contracts are terminated in quick succession—it’s not a speed bump, it’s a structural shift. At the same time, the quiet dismantling of DEI targets by these firms and removal of pronouns from email signatures suggests a deeper cultural recalibration to match the new political reality. In their place, leaner, tech-native vendors—and even in-house government digital teams—are stepping in, promising greater efficiency at lower cost. The real question is: what happens when a business model built on government certainty starts to collapse? For firms long reliant on public sector contracts, pivoting to the private sector means more competition, tighter margins, and less patience for bloated transformation projects. This isn’t just a dip in revenue—it’s a reckoning. The consulting industry is being forced to evolve, fast. Source: Financial Times

The End of Consulting as We Know It: A Wake-Up Call I just witnessed something extraordinary: six months of McKinsey-caliber research condensed into one hour using AI. The Brutal Truth About Consulting's Future Traditional management consulting is facing its "Kodak moment." Just as digital photography transformed image capture overnight, AI is revolutionizing knowledge work. Unlike previous disruptions, this one strikes at the heart of our most prestigious knowledge institutions. Consider this: Perplexity AI just analyzed the global energy landscape, identified key suppliers, and forecasted market trends—tasks typically handled by armies of consulting analysts. The kicker? No coffee breaks, no billable hours, no six-figure salaries. This reveals a deeper truth about our industry that few are willing to confront. The Real Crisis Isn't AI—It's Identity The consulting industry has long operated on three core premises: - Information asymmetry creates value - Experience translates to expertise - Time equals quality AI shatters all three assumptions. When a machine can process decades of market data in seconds and generate insights that rival experienced consultants, we must ask: What truly differentiates a $500/hour consultant from an AI that can work for pennies? The Uncomfortable Questions 1. If AI can match human analysis in record time, what justifies the traditional consulting fee structure? 2. When machines can identify patterns across thousands of cases instantly, does human "experience" hold the same value? 3. Most provocatively: Have consulting firms been selling labor-intensive research packaged as "strategy" all along? Beyond Disruption: The Renaissance of Consulting This disruption could elevate consulting to what it always aspired to be—a truly transformative force in business. The Future Belongs to "Augmented Consultants" Who: - Use AI to enhance rather than replace human insight - Focus on implementation and change management - Create novel solutions rather than recycling frameworks - Build genuine relationships that machines cannot replicate A Call to Action The consulting industry stands at a crossroads. We can either: 1. Defend the status quo and become irrelevant 2. Embrace AI and redefine our value 3. Transform into something entirely new The Question That Keeps Me Up at Night In five years, will clients still pay premium fees for human-generated insights when AI can deliver comparable analysis instantly and at scale? Your Turn - How is your organization preparing for this shift? - What aspects of consulting do you believe are truly AI-proof? - When should we start measuring consulting performance against AI benchmarks? This isn't just about consulting—it's about the future of knowledge work itself. Doctors, lawyers, analysts: take note. Let's have this difficult conversation now, before the market forces it upon us. #ConsultingFuture #AI #StrategyConsulting #McKinsey #BCG #Bain #FutureOfWork #Innovation

Two trends are quietly reshaping management #consulting. On one hand, much of the traditional work—market analysis, strategy framing, even building slide decks and technical specs—can now be done faster and cheaper with #AI. That means fewer billable hours for tasks that used to justify entire projects. On the other hand, firms like BCG and Accenture are seeing a surge in AI-related revenue. BCG recently disclosed $2.7 billion in AI business, and Accenture reported $3.6 billion in bookings. These are not experiments but the new engine rooms. Most companies will need help transforming to AI-driven enterprises to stay competitive. Most lack the in-house skills to do it. That creates demand not for traditional consulting, but for advisory models that combine domain fluency, strategic judgment, and AI capability. This is not the end of consulting. It is the end of one version of it. The shift will redefine not only how firms create value but which types of careers thrive inside them. #AIinConsulting #DigitalTransformation #StrategyLeadership #FutureOfWork #SaaS #PrivateEquity https://lnkd.in/eVRhaQrK

Every industry gets disrupted—but right now, consulting is on the edge of a transformation that most aren’t ready for. I’ve spent over 30 years in enterprise tech and watched wave after wave of innovation hit consulting. But artificial intelligence is different. AI isn’t just another tool or trend—it’s fundamentally changing what clients expect, how insights are delivered, and where value comes from. The hard truth is that most consultants and firms are not prepared. Today’s clients can access powerful AI analytics and strategy tools on their own—what once required a team of experts now happens in minutes, in-house. The gap is growing between what many consultants offer and what the market truly needs: hands-on AI expertise, real integration skills, and measurable business outcomes. I dive into this topic and the future of consulting in my latest article: “Why Most Consultants Are Ill-Prepared for the Coming AI Wave—And What That Means for the Future of Consulting.” In it, I explore why traditional consulting models are under threat, how client expectations have changed, and what consultants must do to stay relevant and valuable in the era of AI. If you’re an industry leader, consultant, or just interested in where AI is taking us next, I invite you to read and share your thoughts. Let’s start a real conversation about reinventing consulting for the AI age. #AI #Consulting #DigitalTransformation #ArtificialIntelligence #FutureOfWork #Leadership