Artificial intelligence is fundamentally altering the consulting landscape, impacting everything from fee structures to the traditional reliance on graduate talent. Svilena Tzekova, KPMG's global head of consulting, noted that the intellectual property that once defined consulting is now more accessible, leading clients to expect higher value without necessarily paying more.
As firms grapple with how to implement outcome-based pricing, they face pressure to adapt to clients' desires for tangible results rather than billable hours. Smaller, AI-native consultancies like Elixirr are positioned to capitalize on this shift, as they have always focused on delivering fixed outcomes rather than charging by the hour.
Emiko Caerlewy-Smith from Elixirr emphasized that clients are increasingly looking for consultancies to build solutions rather than just provide advice. Additionally, the traditional model of hiring graduates for entry-level tasks is being questioned, as many of these tasks can now be automated.
Claire Trachet, founder of an advisory firm, raised concerns about how junior employees will gain necessary experience if foundational tasks are performed by AI. In response, large firms like EY are rethinking their workforce development strategies, creating new roles that leverage technology while still emphasizing the importance of human judgment and intuition.
KPMG's Tzekova suggested that rather than eliminating graduate recruitment, firms should adapt by giving junior consultants more responsibility earlier in their careers. The ongoing evolution in consulting driven by AI will require firms to quickly redeploy their talent to maintain their economic models