Fast-paced projects, a front-row seat to high-stakes decision-making, and eye-watering salaries straight out of business school make management consulting one of the most coveted career paths for MBA grads.
At its core, the role of a consultant is about solving complex problems. Consultants work with organizations to understand their challenges and develop strategies to address them.
As the nature of that work changes, so too do the tools used to support it. Generative AI tools such as ChatGPT and Claude have only relatively recently entered widespread use, but they’re already changing how consultants approach their day-to-day tasks. It’s a change some have referred to as the next Industrial Revolution.
AI tools are especially good at automating routine tasks—activities that follow a step-by-step process, such as analyzing data patterns or putting together presentation decks.
So, what does all this mean for the future of management consulting?
How AI is disrupting the consulting industry
Tasks that once took days or even weeks of a consultant’s time can now be automated within a matter of minutes. This isn’t just changing the daily responsibilities of a management consultant, it’s also raising client expectations.
A recent IBM report found that 89% of consulting buyers expect consulting services to incorporate AI for improvement results, and as many as two-thirds will stop working with providers that don’t.
Daniel Lay, head of consulting careers at the London Business School Career Centre, points to three core ways AI is transforming management consulting: growing competitive pressure, changing client expectations, and shifts in how consultants operate.
Business school students typically develop their consulting skills through courses in data modelling, strategy, and operations. They often apply these skills through real-world case studies and consulting projects.
Today, that training is expanding to include AI-related tools such as Tableau, Power BI, and Excel plugins. As AI integration becomes more mainstream, clients are expecting quicker turnarounds and more decision-making led by data.
“AI-driven predictive models help consultants forecast trends more accurately, making recommendations that are more data-driven and less reliant on intuition,” says Daniel.
This change is also fueling greater competition between emerging AI-powered consultancies and established industry giants.
“With automation, traditional consulting firms are facing pricing pressure from AI startups offering data insights at a fraction of the cost,” he explains.
One example is Xavier AI, a fully AI-first consultancy billed as the world’s first AI strategy consultant.
According to Joao Filipe, cofounder of Xavier: “99.9% of businesses could never really afford McKinsey or any of the MBBs. We created Xavier AI so that anyone could have the power of a consulting firm at their hands when they need it,” he said in a recent interview with Business Insider.
Where human judgement still matters
While AI is transforming parts of the consulting process, it hasn’t made the human consultant obsolete. In fact, as automation handles some of the technical heavy lifting, the human aspects of the role are becoming even more important.
One of the most valuable skills in consulting is the ability to define the problem. Clients rarely arrive with a neatly packaged brief; it often takes a trained consultant to spot the underlying issues.
While AI tools can store and process huge amounts of information, they struggle to hold onto context in the way a human can.
This means that AI doesn’t naturally connect information across different sources or moments in conversation in the way that allows a human consultant to spot inconsistences or link ideas as the problem evolves.
That’s why firms are ensuring people are closely involved with any AI processes.
According to Bryce Hall, associate partner at McKinsey, companies that are integrating AI tools in their workflow are ensuring humans stay closely involved to validate results and manage risk, he explains in the firm’s latest State of AI report.
With consultants often involved in decisions that have a human and organizational impact, there’s also the question of trust and ethics. AI tools can recommend a particular course of action based on efficiency, but it’s down to the consultant to consider the ethical and broader implications of that outcome.
The rise of the AI-powered consultant
If the early narrative around AI centered on whether it would replace management consultants, the more relevant question now concerns how the role is evolving. Increasingly, success will depend on learning to work alongside AI, rather than without it.
“There’s a growing demand for hybrid consultants who can understand both business strategy and AI implementation,” says Daniel.
Many firms are already adapting. AI systems such as McKinsey’s QuantumBlack or the Boston Consulting Group’s BCG GAMMA support consultants by processing large datasets and uncovering key findings through advanced analytics.
Far from reducing the need for consultants, the rise of AI is increasing investment in the industry. Consulting spend currently accounts for 2.8% of corporate revenue on average, according to IBM, with projections indicating this could rise above 4% by 2026. Applied across the Fortune Global 500, this would represent more than $500 billion in additional annual spend.
When it comes to skills, consultants will increasingly need to feel comfortable using AI tools, even if they’re not technical specialists.
“Even if consultants aren’t building AI models themselves, they’ll need a strong grasp of how AI works and how to apply it effectively. They must excel at working alongside AI systems rather than being replaced by them,” says Daniel.
What this means for business school grads
AI may be transforming the consulting industry, but business school remains one of the strongest pathways into a consulting career.
“Business schools excel at teaching core consulting skills: strategy, financial analysis, marketing, leadership, and communication. These will always be necessary,” says Daniel.
What’s changing is the value proposition. While firms are hiring more data scientists and AI specialists, Daniel explains, they continue to recruit MBA graduates for the strong consulting skills they bring, from strategy and communication to problem-solving.
“Business school provides a comprehensive framework for understanding business problems—something AI can’t do alone. AI may provide insights, but knowing how to interpret, contextualize, and present those insights is critical,” he adds.
To stay competitive, students and early-career professionals should start building AI literacy early on. That means understanding the basics of how AI works; practicing with ChatGPT and other relevant tools; and learning how to interpret AI-generated insights.
“Understanding and mastering certain tools can make you stand out in interviews and on the job. Familiarize yourself with AI tools commonly used in consulting, such as Tableau, Power BI, Python and R, Midjourney, and so on,” he explains.
Business schools are already responding to the growth of AI-powered consulting. Harvard Business School recently announced a new required AI course for all MBA students, while The Wharton School is launching a dedicated MBA major in Artificial Intelligence for Business.
“The most successful firms will be those that combine AI-driven insights with human expertise and creativity,” Daniel concludes.
