Consulting reimagined, powered by AI

As artificial intelligence makes it easier for humans to wield technology, software is supercharging talent—allowing people to create business value in ways that weren’t previously possible.

In this environment, organization leaders expect to work with AI-enabled consultants who can tackle complex problems with unprecedented speed and precision. They want trustworthy partners who are obsessed with results—and can help them adapt to rapid change.

To understand how expectations are evolving, the IBM Institute for Business Value, in collaboration with Oxford Economics, surveyed global executives who buy consulting services. We found that 75% expect AI to have a positive impact on their use of consulting.

Executives plan to increase overall consulting spend—but they expect consultants to deliver greater value with AI.

So, it’s no surprise that 86% of consulting buyers say they’re actively looking for services that incorporate AI and technology assets. Two-thirds go even further: They’ll stop working with consulting providers that don’t incorporate AI into services provided.

That’s because consulting buyers know they can’t run tomorrow’s business with today’s skills, processes, or technologies. In key functions—led by customer service, IT, research and development, and marketing—organizations are already tapping into generative AI, machine learning, and other AI technologies to drive productivity and innovation. This explains why enterprise spending on AI surged 78% between December 2022 and March 2024.

But AI as a tool can only take organizations so far. It needs to be married to the right expertise, skills, decision-making prowess, and technical capabilities—and easy for people to use—to deliver real business value. And this dependency promises to fundamentally change how consulting services are delivered and consumed.
 

Redefining the consulting operating model

The cost of reinvention

New technology improves productivity, of course. But truly transformational technologies, including AI, also create opportunities to reimagine what can be done, creating whole new businesses, industries, and economies.

Rather than replacing consultants, AI advancements make them even more essential. In fact, 86% of consulting buyers expect to spend more on consulting in the future, and 94% expect AI to positively impact consulting efficiency. Average consulting spend, which is 2.8% of total revenue today, is expected to climb above 4% by 2026—an increase of more than $500 billion annually when applied across the Fortune Global 500.

89% of buyers now expect consulting services to incorporate AI for improved productivity and quality.

As AI adoption opens a new world of business opportunity, the companies that reinvent themselves the fastest can gain a competitive advantage. And executives expect their consultants to help them rise to this digital transformation challenge. 89% of buyers now expect consulting services to incorporate AI for improved productivity and quality—and 80% say they want more digital delivery models.

While buyers expect consulting companies to leverage AI to help them reimagine what’s possible, they also want AI to help them get more for their money. 78% of consulting buyers say they expect cost savings and delivery benefits.

It’s the dream scenario—more value faster, and at a lower cost. But can consultants deliver on these demands? Only if they take a technology-driven approach focused on evidence-based experimentation, continuous iteration, change management, and user-centric design.

In this model, consulting partnerships become much more symbiotic. Consultants aren’t contracted to solve a single problem or streamline isolated business processes. They’re charged with identifying widespread opportunities to improve business performance and designing solutions to deliver specific outcomes. Instead of contracting for time-boxed engagements with specific, limited deliverables, organization leaders and their consultants build long-term partnerships that deliver continuous value and align with business strategy.

AI assistants, reusable assets, and proven methods power a continuous improvement flywheel.

However, not all consultants are created equal. Consulting buyers will need to be strategic and responsible in selecting partners and using AI models and platforms that fit their unique business needs. More and bigger models and assets are not always better. It’s about using the right tools at the right time for what you’re trying to do. Good governance, responsible AI, trust, and transparency should be at the core of how assets are used.

Download the report to learn how the consulting operating model is changing, how consulting relationships need to adapt—and what business leaders should look for as they build trusted, long-term partnerships for an AI-enabled future.