The Five Ws of AI in Consulting: The Future of Consulting is Here

The AI consulting market is expanding rapidly and is projected to reach $72.5 billion by 2025, with a compound annual growth rate (CAGR) of 40.3% from 2020 to 2027. Yet, many organizations struggle with limited expertise, unclear strategies, and ethical concerns.

In this edition of Consultport Insights, we will go through the “Five Ws” behind AI in Consulting: Why does it improve productivity, How does it reshape project workflows, What tasks are automated, Where is growth fastest, and Who are the key professionals driving adoption?

The “Why”: Productivity Gains?

AI in Consulting is on track to reach a market value of $72.5 billion by 2025, with annual growth topping 40%. Companies see significant productivity jumps once they deploy AI-powered tools:

• 70% reduction in programming time, according to Microsoft.
• 44% time-saving in professional writing tasks, according to MIT studies.
• 50% time reduction for accountants, auditors, and tax preparers on most tasks, as reported by UPenn.

Despite these benefits, only 30% of AI initiatives achieve complete success. Common obstacles include skill shortages, ethical considerations, and organizational inertia. Yet, many executives remain optimistic. They see faster project delivery, more accurate data analysis, and a 35% increase in operational efficiency.

Companies that navigate the pitfalls of AI in Consulting often gain an advantage in core areas such as strategy planning, risk management, and cost optimization. The payoff: leaner processes, improved outcomes, and more impactful advisory work.

The “How”: Reshaping Consulting Workflows

Considering the Management Consulting Process phases outlined by ISO 20700, AI has the potential to accelerate and transform consulting workflows across three phases:

• Contracting: AI solutions analyze historical data to reveal inefficiencies or potential cost savings. Automated systems summarize meeting transcripts, legal clauses, and service-level requirements.
• Execution: Large-scale data processing tools detect anomalies in financial statements or sales trends within hours. Repetitive tasks—like creating status updates or formatting slide decks—see significant automation, cutting hours from daily workloads.
• Closing: Software cross-checks final deliverables with contract terms to flag any discrepancies. Gen AI tools produce polished client reports with summaries and visuals, while improving quality assurance as AI compares outcomes to benchmarks from previous projects.

These enhancements allow consulting firms to speed up project timelines while ensuring accuracy. AI minimizes human error, improves decision-making, and optimizes administrative tasks, making consulting engagements more effective and scalable.

The “What”: Core Capabilities of AI in Consulting

Consulting firms need a clear understanding of AI tools to use them effectively. Firms that adopt AI can improve efficiency and service quality. Those who ignore it risk falling behind.

AI improves consulting in several key areas:

• Automating Deliverables – Tools like ProAI’s Pro Business Plans, Google Duet, and Notion AI help consultants create reports, market analyses, and presentations faster. This reduces time spent on documentation and allows more focus on client work.
• 24/7 Client Support – AI chatbots like Claude.ai handle routine inquiries, schedule meetings, and collect feedback. This improves response times and availability. However, consultants are still needed for complex issues and relationship-building.
• Enhanced Recruitment – AI tools screen resumes, analyze interview responses, and track performance data to identify top candidates. This speeds up hiring and reduces costs. Human oversight is essential for assessing soft skills and cultural fit.
• Streamlining Operations – Platforms like Monday.com AI and ClickUp AI automate administrative tasks, such as meeting preparation and CRM updates. This improves efficiency and reduces manual workload. Firms must plan for training and job adjustments to integrate AI effectively.

AI can help consulting firms work faster, improve service quality, and reduce costs. Here is the turning point: consulting firms should use AI to enhance human expertise, not replace it.

The “Where”: Consulting Projects and Regions

AI in Consulting Projects

The impact of AI in terms of automation and human support varies by project type.? Its value depends on whether it automates tasks or enhances human collaboration. Analyzing both aspects helps firms understand AI’s practical role.

• Strategy Consulting – AI automates data analysis and pattern recognition, helping consultants process large datasets and generate insights quickly. A Harvard Business Review study found that AI performed on par with MBA students in strategy case studies. However, AI cannot replace human decision-making, judgment, and contextual understanding, which are essential in this field.
• Mergers and Acquisitions (M&A): AI speeds up due diligence by efficiently analyzing financial and legal documents, excelling in data synthesis and pattern recognition. However, it cannot replace human judgment in deal negotiations or cultural assessments, which require experience and interpersonal skills.
• Change Management –? Change initiatives have a high failure rate (up to 70%), especially with complex system rollouts. Here, AI supports human collaboration by personalizing employee experiences and improving communication. AI value stems from supporting the human side of transformation, than merely automating processes.

Regions and Sectors Adopting AI Consulting

AI consulting adoption also varies by region:

• Asia-Pacific leads AI consulting growth, with a projected 42% increase in adoption by 2025, driven by investments in smart manufacturing and data analytics.
• North America sees substantial AI investment in financial services, with firms spending $7.4 billion annually on AI-driven risk management and fraud detection.
• Europe focuses on ethical AI and data compliance, with AI startups receiving over 1.4 billion EUR in funding by 2025.

And industries:

• Retail AI adoption grew by 38% last year, focusing on inventory optimization and personalized customer engagement.
• Healthcare & Life Sciences allocate 25% of AI consulting resources to predictive diagnostics and patient care innovations.
• Energy & Automotive sectors are accelerating AI use, with energy-related AI solutions projected to grow by 39% in 2025.

AI is no longer an experimental technology—it is an essential tool for businesses looking to optimize decision-making and operations. Specialization is also driving market trends:

• Projects focused on natural language processing (NLP) have grown by 30%.
• Demand for ethical AI and bias mitigation services has risen by 55%.
• Interest in explainable AI models has increased by 37%, reflecting the need for transparent and interpretable systems.

The "Who": AI Specialists and the Rising Talent Demand

As AI adoption grows, so does the demand for AI talent.

• 68% of executives report difficulty in finding AI-skilled professionals, including data scientists, machine learning engineers, and AI product managers.
• 40% of the global workforce will require reskilling in the next three years to stay competitive as AI reshapes job functions.
• Demand for independent AI consultants has surged by 50%, particularly in cybersecurity, AI ethics, and algorithm development.

Many consulting firms turn to independent AI specialists to fill these gaps. Platforms like Consultport provide vetted AI professionals within 48 hours, ensuring companies can scale expertise as needed. The ability to access specialized AI talent quickly is a crucial factor in accelerating AI integration within consulting firms and corporate environments.

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?? The Five Ws of AI in Consulting: The Future of Consulting is Here

??? Samuele Deidda