AI rewires consulting (www.businessinsider.com)

AI is transforming the consulting industry, prompting major firms like McKinsey, BCG, Deloitte, EY, KPMG, PwC, and IBM Consulting to integrate advanced technologies across their operations. This shift is evident as firms hire more technical talent, develop AI tools, and encourage employees to incorporate AI into their daily tasks. A new role, the "forward-deployed engineer," is emerging—these professionals act as the bridge between AI systems and clients, customizing solutions to address specific business needs while redefining traditional consulting practices. The rise of AI agents further alters consulting dynamics, automating routine tasks and enabling smaller teams to manage a network of digital assistants. This evolution not only reduces team sizes but also transforms the employee hierarchy within these firms, requiring consultants to build and supervise AI technologies. As consulting firms adopt a tech-like approach—developing software and productizing their expertise—they face competition from AI startups offering expedited and cost-effective solutions to strategy work. This creates a new competitive landscape where the boundaries between consulting and technology continue to blur, emphasizing the need for adaptability within the industry.