{"id":1606420,"date":"2025-12-17T12:00:55","date_gmt":"2025-12-17T17:00:55","guid":{"rendered":"https:\/\/observer.com\/?p=1606420"},"modified":"2025-12-17T11:53:08","modified_gmt":"2025-12-17T16:53:08","slug":"ai-changing-consulting-jobs","status":"publish","type":"post","link":"https:\/\/observer.com\/2025\/12\/ai-changing-consulting-jobs\/","title":{"rendered":"How A.I. Is Reshaping Consulting From the Bottom Up"},"content":{"rendered":"
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Automation is thinning the ranks of junior consultants while forcing firms to bet on senior expertise, outcomes and adaptability. Davide Bonaldo\/SOPA Images\/LightRocket via Getty Images<\/span><\/figcaption><\/figure>\n

The rapid spread of A.I. is starting to reshape the consulting industry<\/a>, and not without pain. The technology can now handle many of the tasks once assigned to junior, entry-level consultants\u2014often faster, cheaper and more accurately. As a result, A.I. has been linked to thousands of planned job cuts<\/a> at consulting giant McKinsey & Company, as well as frozen starting wages<\/a> at several major firms.<\/p>\n

However, fears of widespread automation may be overstated. Alex Adamopolous, CEO of London-based software company Emergn, argues in Consultancy.uk that A.I. is more likely to disrupt consulting than eliminate it. A<\/a>s A.I. makes formerly high-end work like market research and strategy planning available in minutes, he says, consulting firms will be forced to abandon their traditional model of diagnosing problems, recommending fixes, and then walking away. In its place, a new approach is taking shape\u2014one where partners focus on transferring capability to clients and embedding a \u201crepeatable method of working.\u201d<\/p>\n

The death of the consulting pyramid<\/h3>\n

Journalist Joe Nocera <\/span>argues<\/span> that this shift could actually be good news for consulting\u2019s battered reputation. He points to the industry\u2019s long-standing business model, in which firms charged clients for \u201cmanpower and time spent on the project.\u201d That structure rewarded long, labor-heavy engagements, even when results weren\u2019t guaranteed. Over time, that led many clients to view profit-focused consultants as \u201ca scam.<\/a>\u201d<\/p>\n

In the A.I. era, that model is losing its grip. Clients can now use A.I. tools to run analyses and research that once cost millions in consulting fees. As Nocera notes, this has pushed companies to demand outcome-based contracts\u2014paying for results rather than hours worked. That pressure is already showing up in the numbers. According to Business Insider, 25 percent of McKinsey\u2019s fees<\/a> now come from outcome-based pricing.<\/p>\n

This shift is also forcing consulting firms to rethink how they\u2019re structured internally. Traditionally, firms operated as a pyramid: a wide base of junior consultants doing research and analysis, topped by a small group of senior leaders focused on strategy and client relationships. That structure is starting to crumble.<\/p>\n

\u201cThe current pyramid model will gradually shift with a shrinking at the bottom half of the pyramid,\u201d as A.I. takes over tasks once handled by junior consultants, Arda Ecevit, co-founder of A.I. strategy platform NexStrat AI, told Observer. Instead, he said, firms should move toward a \u201cmore senior-expert-heavy\u201d model.<\/p>\n

That thinning of the pyramid is already underway. The \u201cBig Four\u201d accounting firms\u2014KPMG, Deloitte, EY and PwC\u2014are all cutting back on entry-level roles<\/a> largely because of A.I. adoption.<\/p>\n

The changing role humans will play in consulting<\/h3>\n

According to Ecevit, it\u2019s not just junior roles that are under threat. Specialized A.I. platforms can now \u201cperform many key roles associated with the role of project managers or even partners,\u201d he said. That includes building project plans, shaping strategy, advising on key decisions and even flagging potential risks.<\/p>\n

Still, some parts of consulting remain firmly human. Ecevit emphasized that people will continue to play a critical role in leadership, motivating organizations through change, implementing strategy, aligning stakeholders and navigating \u201ctricky\u201d internal dynamics.<\/p>\n

In a Harvard Business Review article, three consulting experts\u00a0divided consulting roles that can\u2019t be automated into three groups:<\/a> A.I. facilitators, engagement architects and client leaders.<\/p>\n

In that framework, A.I. facilitators would be junior consultants fluent in the latest tools, responsible for designing and improving A.I.-driven workflows that help \u201cteams generate insights at speed.\u201d Engagement architects would be more experienced consultants who define problems, apply human judgment to A.I.-generated findings, and turn those insights into strategy. Client leaders, meanwhile, would focus on executive relationships\u2014helping organizations manage change and anticipate disruption.<\/p>\n

If this model takes hold, A.I. fluency will become essential to both consulting firms and how clients judge their value. As Ecevit puts it, the message for \u201cexisting consultancies\u201d in the A.I. age is simple: \u201cadapt or die.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

As A.I. takes over analysis and research, consulting firms are being pushed to abandon billable hours and reinvent their value proposition.<\/p>\n Read More<\/a>","protected":false},"author":129757851,"featured_media":1366366,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"post_tag":[2253],"company":[423987186,424006054,423975360,3835592,11994489],"channel":[186,12374,423875666],"location":[],"nyo_column":[],"person":[423918832],"nyo_post_hidden":[],"coauthor":[424003711],"class_list":{"0":"post-1606420","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"tag-consulting","8":"observer_company-deloitte","9":"observer_company-ey","10":"observer_company-kpmg","11":"observer_company-mckinsey-company","12":"observer_company-pricewaterhousecoopers-llp","13":"channel-business","14":"channel-artificial-intelligence","15":"channel-technology","16":"nyo_person-joe-nocera"},"acf":{"homepage_position":"","homepage_title":"","homepage_excerpt":"","alternative_og_image":"","headline":{"seo_headline":""},"subheadline":{"optimized_seo_description":"","optimized_social_excerpt":""}},"apple_news_notices":[],"parsely":{"version":"1.1.0","canonical_url":"https:\/\/observer.com\/2025\/12\/ai-changing-consulting-jobs\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":[],"rendered":"","tracker_url":"https:\/\/cdn.parsely.com\/keys\/observer.com\/p.js"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/observer.com\/wp-content\/uploads\/sites\/2\/2023\/06\/GettyImages-1247575491.jpg?quality=80","coauthors_byline":"By Raphael McMahon","display_channel":"","thumbnail":"\"A