AI tools push consulting firms to rethink how they charge and work

In short: As AI tools get better at producing business advice and slides, consulting firms are under pressure to prove what humans add.

What's going on

Consulting firms have long made money by advising companies on strategy and technology. The Financial Times editorial board says AI is starting to take over some of the simpler parts of that work.

Many businesses can now ask AI systems for answers that sound informed and well presented. It is like having a fast assistant that can draft a plan or summarize options, instead of paying a team to build a slide deck.

The article points to a shift in what companies outsource. Basic assignments that used to go to junior consultants are increasingly being done in house, with AI helping to do the first draft. That matters because those smaller projects often helped pay for the harder, more specialized work.

Large firms are responding by leaning into AI. Accenture CEO Julie Sweet argued this week that big consultancies have the range of skills to help clients reach their AI goals. Strategy firms like McKinsey, Bain, and Boston Consulting Group are also positioning themselves as guides for companies that want “road maps” for using AI.

What to watch

The editorial suggests pricing could change over time, with clients less willing to pay for hours spent making slides that an AI tool can create quickly. More payment may shift toward results instead of time billed, but the change could be painful for firms that depend on the old model. Another thing to watch is competition from AI companies themselves, since groups like OpenAI and Anthropic are also pursuing higher-end consulting work.

Source: Financial Times