Generative AI Boom Threatens Traditional Consulting Firms

What Happened

Major consulting firms are facing significant challenges as the rise of generative AI upends their traditional business models. Companies adopting AI-powered tools are now prioritizing direct technology and software provider relationships over traditional consulting advice. This shift is leading to reduced demand for classic strategy and transformation services, impacting firms that have long helped businesses navigate digital change. The fast adoption of AI is pushing clients to experiment and innovate in-house, leaving consultancies in urgent need of repositioning their expertise to stay relevant amid the AI-driven shift.

Why It Matters

The generative AI surge is reshaping business processes, accelerating digital transformation, and reducing reliance on external advisory services. This development signals a broader move toward automation and specialized tools, urging consultants to adapt quickly or risk obsolescence. Read more in our AI News Hub