AI Upends $300 Billion Consulting Model, Pressuring Fees and Graduate Hiring
Updated
Updated · CNBC · Nov 12
AI Upends $300 Billion Consulting Model, Pressuring Fees and Graduate Hiring
2 articles · Updated · CNBC · Nov 12
Summary
Consulting firms are scrambling to rethink pricing and staffing as AI erodes the value of traditional advice and automates junior-level work that long underpinned the industry's economics.
KPMG says clients increasingly want outcome-based fees, but procurement teams still benchmark projects by headcount and hourly rates, even as AI adds new costs such as computing power and model-usage charges.
Elixirr argues smaller AI-native consultancies can move faster, charging for fixed deliverables rather than time and helping clients build products like AI insurance platforms instead of just offering recommendations.
Graduate pipelines are also under strain because AI can handle research, analysis and presentation work, raising questions about how juniors will build judgment and experience.
EY and KPMG say the answer is not to stop hiring graduates but to redesign entry-level roles, push responsibility earlier and create new jobs around data, platforms and technology risk.