What is Wrong with Consulting?

For nearly three decades, I have navigated various industries across multiple countries, standing at the heart of complex transformations. At different points in my career, I collaborated with consulting giants—both as a client and as part of the machinery within these firms. Consulting has long been a critical force for both corporations and governments, it’s difficult to imagine these institutions meeting today’s challenges without external expertise. Yet, despite this indispensable role, the consulting industry finds itself at a crossroads.?

The signs are impossible to ignore. McKinsey, BCG, Deloitte, PwC, KPMG, EY, and Accenture—the industry’s titans—have announced massive layoffs, workforce reductions, and restructuring, with thousands of jobs cut across the globe. Reports cite shrinking demand, overcapacity, and shifting client expectations as driving factors. The consulting boom that flourished during the pandemic has dissipated, leaving behind a more sobering reality.?

This upheaval forces us to confront uncomfortable questions. Has consulting lost its relevance? Has artificial intelligence (AI) usurped the traditional consulting model? Are these firms collapsing under the weight of outdated practices, unable to adapt to disruption??

The answer is not that consulting is dying—it is profoundly transforming. We are not witnessing an industry’s demise but the birth of a new era, one that demands bold reimagination, deeper strategic engagement, and operational agility.

The Perfect Storm - Challenges Consulting Faces

Erosion of the Traditional Business Model?

For decades, the consulting business thrived on a hierarchical “leverage” model - senior partners sold services while junior consultants executed tasks behind the scenes. This division, once efficient, is now a critical liability. The gap between strategy design and implementation has grown too large, and clients are no longer willing to accept abstract recommendations without tangible outcomes.?

The rise of AI-powered platforms—capable of handling vast data analyses in seconds—has reduced the need for large project teams of junior analysts. Clients can now self-serve insights and diagnostics, bypassing the need for basic consulting services altogether. As a result, the consulting firms that relied heavily on junior staff to generate margins are forced to rethink their models.?

Moreover, clients’ expectations have evolved. Today’s organizations demand partners who embed themselves in their operations, co-create strategies, and take ownership of implementation. The age of glossy reports and disengaged advisory work is over. Clients now seek consultants who navigate complexity in real-time and deliver measurable results—those who don’t just suggest solutions but see them through to completion.

AI and Automation - Disruption or Opportunity?

The introduction of AI tools like ChatGPT, RPA (robotic process automation), and predictive analytics has redefined consulting’s operational core. Routine tasks—such as financial modelling, benchmarking, and forecasting—are now handled by machines with speed and precision, eliminating the need for armies of junior consultants. The initial fear was that AI would render consultants obsolete, but that prediction has not materialized. Instead, AI has forced a strategic pivot.?

The future consultant is not just a number-cruncher but a strategist, leader, and innovator. AI provides powerful insights, but it is human expertise—intuition, creativity, and empathy—that transforms insights into action. Firms must now rethink their workforce models: automation will handle repetitive tasks, freeing consultants to focus on complex problem-solving, strategic foresight, and change management.?

This shift requires more than just technological adoption—it demands new roles and skills. Consultants must still master traditional business expertise but also digital fluency and emotional intelligence to thrive in this evolving landscape. AI and humans must work symbiotically, each enhancing the other’s capabilities.

Internal Inefficiencies and Short-Termism?

Consulting firms are also grappling with internal challenges of their own making. Over-hiring during the pandemic boom, bloated structures, and relentless focus on short-term profits have compromised their agility and responsiveness. In many firms, endless internal meetings, bureaucratic approvals, and pipeline reviews stifle creativity and limit time spent on meaningful client work.?

Clients, growing more sceptical, now scrutinize every dollar spent on consulting services. They demand transparency and value beyond flashy presentations. Yet, many consulting firms remain trapped in a cycle of quarterly margin pressures, focusing on selling large engagements while leaving execution to junior teams with limited industry experience. This approach has eroded trust and left clients questioning the credibility of their consulting partners.?

To survive and thrive, firms must break free from internal inefficiencies and move beyond short-term profit-seeking. The new consulting model must place client outcomes at the centre, fostering accountability at every level—from strategy formulation to execution.

The Future of Consulting - A New Model Emerges

From Advisors to Co-Creators?

The consulting industry is shifting from external advisors to embedded strategic partners. The consultants of the future will co-create solutions with clients, assuming shared responsibility for outcomes. They will own both the strategy and its execution, ensuring alignment with rapidly changing market conditions.?

This transformation demands a new breed of consultants—seasoned professionals with deep industry knowledge, leadership acumen, and operational expertise. These consultants will not simply offer advice - they will lead change, acting as player-coaches who guide clients through uncertainty. Firms that cultivate this expertise will set themselves apart, blending proven practices with innovative approaches to drive sustainable results.

AI-Augmented Consulting?

AI will remain a powerful enabler of the consulting model, but technology alone cannot replace human insight. The future belongs to firms that strike the right balance between automation and expertise. AI will deliver data-driven insights in real time, but it is the consultants who interpret, contextualize, and act on those insights who will create lasting value.?

Firms must embrace hybrid models, where automation handles repetitive tasks and consultants focus on high-impact areas such as leadership, transformation, and strategy development. The firms that master this balance will gain a sustainable competitive advantage in a rapidly evolving landscape.

Agility, Accountability, and Value-Based Models?

The consulting firm of the future must be agile, accountable, and outcome-oriented. Rigid structures and traditional pricing models will give way to flexible service offerings that adapt to client needs in real time. Value-based pricing—where fees are tied to measurable outcomes—will replace billable hours, fostering greater transparency and alignment with client goals.?

Consulting firms will also need to cultivate ecosystems of partnerships with start-ups, technology providers, and niche experts, creating a dynamic network that delivers specialized solutions at scale. Collaboration will become a critical differentiator, enabling firms to stay ahead of innovation curves.

?A New Era for Consulting - The Way Forward

The mass layoffs and restructuring sweeping through the consulting industry signal not its end, but its reinvention. The firms that survive and thrive will be those that embrace this transformation—combining advanced technologies with human expertise to deliver meaningful, lasting value.

The consulting firms of tomorrow will no longer be cumbersome corporations bogged down by bureaucracy. They will evolve into agile networks of highly skilled professionals, ready to lead change, solve complex challenges, and deliver results that matter. Senior experts with deep operational experience will take centre stage, acting not as distant advisors but as active players embedded within their clients’ organizations.

Those firms that fail to adapt—those that cling to outdated models, prioritize profit margins over client success, and rely too heavily on junior staff—risk irrelevance. The modern consulting firm must be a dynamic, client-centric community of leaders and innovators, delivering measurable outcomes with integrity and purpose.

This is not the end of consulting. It is its reinvention.