Consulting Is Dying … And Most Firms Still Don’t Know It
Introduction: I Saw This Coming in 2020
Back in 2020, I wrote about the consulting sector’s sharp decline during the pandemic. Source Global Research predicted a 19% market drop - from $190 billion in 2019 to $160 billion in 2020 - and I warned that if consulting stayed expensive, complex, and traditional, the industry would face lasting damage.
At the time, many saw COVID-19 as a temporary storm. I saw it as the first sign of a slow death for the old consulting model.
The First Symptoms (2020)
The pandemic exposed vulnerabilities most firms had ignored:
Fixed overhead - huge offices, high salaries, underutilised consultants.
Slow sales cycles - clients hesitant to sign big, long-term contracts.
Risk-heavy delivery - constant travel, health exposure, and burnout.
Rigid models - outdated delivery frameworks struggling to adapt.
Even then, I argued: the old lens can’t solve tomorrow’s problems.
The Acceleration (2025)
Fast forward to today - and AI has taken consulting’s slow decline and turned it into a rapid collapse.
McKinsey’s recent move says it all:
5,000 consultants replaced with 12,000 AI agents.
25% of projects now outcome-based, not billed by the hour.
AI-led delivery making up ~40% of revenue - faster, cheaper, more scalable.
Clients aren’t resisting. They’re embracing it.
Why the Old Model Is Dying
The formula that built consulting: more people × more hours = more revenue …
… no longer works when:
AI can handle research, analysis, and reporting in minutes.
Clients demand results, not time spent.
Lean, tech-enabled firms can undercut fees without sacrificing quality.
The “big, expensive, human-heavy” model is on life support.
The Real Cause of Death? Lack of Courage
It’s not the technology killing traditional consulting - it’s leadership’s fear of cannibalising their own business model.
Most firms are waiting for the market to “stabilise” before making changes. But this market is the new normal. Waiting is the same as giving up.
What the Survivors Will Look Like
To avoid joining the obituary list, consulting firms must:
Embed AI into the core delivery model - not as an add-on, but as the engine.
Adopt outcome-based pricing - aligning incentives with client success.
Run lean and digital-first - strip away the bloated overhead.
Reskill human consultants - focus on creativity, strategy, and complex problem-solving.
Conclusion: Consulting Isn’t Dead…. But It’s Dying Fast
The patient isn’t gone yet, but the vital signs are weak.
The firms that will survive (and thrive ) are the ones who stop protecting yesterday’s model and start building tomorrow’s.
In 2020, I called the first symptoms. In 2025, the diagnosis is clear.
The question is no longer if consulting will change - it’s who will make it to the other side.