AI Reshapes Consulting: Skills, Hiring, and the Rise of AI-as-a-Service

The consulting industry is undergoing a significant transformation driven by the rapid advancement and adoption of artificial intelligence (AI). Whereas the long-term potential of AI in boosting productivity is substantial—estimated at $4.4 trillion in added growth potential according to McKinsey—the immediate impact on hiring and skill requirements is creating both challenges and opportunities for aspiring consultants.

Hiring Trends and the Impact of AI

Entry-level hiring at top consulting firms, including the Big Four (Deloitte, EY, KPMG, and PwC), has been decreasing. Some firms have reportedly cut graduate entries by nearly a third between 2023, and 2025. Starting salaries have remained frozen for three years as reported by the Financial Times. While AI is a factor, economic uncertainty, post-COVID adjustments, and offshoring are also contributing to these trends.

The Evolving Skillset for Consultants

Despite the automation of some entry-level tasks, core “human skills” are becoming increasingly valuable. Boston Consulting Group’s global people chair, Alicia Pittman, emphasizes the importance of combining technical expertise with business judgment, collaboration, and leadership. Fundamental traits like curiosity, judgment, resilience, and teamwork remain constant and are even more critical in an AI-enabled environment.

Consultancies are embedding AI tools into training programs. EY, for example, is utilizing proprietary AI tools like EYQ and its EY.ai agentic platform to automate tasks such as data entry, research, and initial analysis, freeing up consultants to focus on more complex problem-solving and strategic decision-making as detailed in a LinkedIn report.

The Debate Over Large Language Models (LLMs)

Not all firms are embracing LLMs with open arms. Fionnuala O’Conor, a partner at digital transformation consultancy OpDem, believes that reliance on LLMs can hinder the development of essential consulting skills, such as problem-solving and critical thinking. She prioritizes nurturing judgment and skills in new recruits, recognizing that boutique firms cannot afford to deliver substandard work.

The Rise of AI-as-a-Service and Competition

OpenAI’s recent launch of its own consulting division is disrupting the traditional consulting landscape. By directly embedding engineers into client organizations, OpenAI is challenging the role of established firms like the Big Four and Accenture as reported by The Finance Story. This “AI-as-a-Service” model offers faster and potentially cheaper solutions, built by the creators of the AI technology itself.

Industry Specialization and Career Paths

The consulting industry is seeing a growing demand for consultants with specialized industry and sector-specific skills, such as cyber resilience, digital skills, and AI. The workforce in the consulting industry has grown by 66% over the past six years, reflecting this trend. There’s also an increasing movement of professionals between industry roles and consulting, and vice versa.

A common career path involves starting at a large consultancy to gain foundational training and then moving to a smaller firm for quicker advancement opportunities. Boutique firms often seek consultants who already possess a strong skillset honed by larger organizations.

Preparing for a Consulting Career

Deloitte UK’s director of early careers, Lauren McCafferty, advises students to research potential jobs, engage with employers early on, and connect with professionals in the field to understand the day-to-day realities of the work.