How changes to consulting could impact the wider business world

Summary

The consulting industry is being reshaped by a mix of AI adoption, changing client needs and narrower promotion pathways. Firms are slimming teams, leaning on automation and rethinking entry-level hiring — PwC has signalled reduced graduate intake over the next three years with AI a key reason. At the same time, many senior consultants are leaving amid shrinking pay and a tougher route to partner.

Because consulting is both an adviser to companies and a major feeder of white-collar talent into industry, these shifts could ripple across the broader business world: how companies buy advice, where they source mid‑ and senior‑level hires, and how quickly new tech and operating models spread through corporates.

Key Points

AI and automation are cutting the need for some junior roles and changing consulting delivery models.
Major firms (eg PwC) plan to reduce graduate hiring, shrinking a key pipeline into corporate roles.
Seniors are exiting as pay and promotion prospects decline, tightening the path to partner.
The way companies engage and pay for consulting work is likely to change as firms restructure.
A reduced consultant pipeline means fewer ex‑consultants entering in‑house roles — affecting talent supply for many businesses.
Consulting alumni have historically advanced to major corporate roles; fewer entrants could alter future leadership pools.
Despite disruption, consultants are well‑placed to adapt because their core business is advising on change.
Secondary market impacts include potential shifts in recruitment strategies, training and internal capability building within firms.

Context and relevance

This matters if you hire externally for strategy, rely on consulting to make big decisions, or recruit former consultants into your business. The trends reflect wider labour‑market changes driven by AI, cost pressures and evolving client expectations. If consulting provides your organisation with both advice and talent, expect changes to hiring pipelines, consulting costs and the speed at which new practices spread across industries.

Why should I read this?

Short version: if you work in HR, strategy, or run a business that buys external advice — pay attention. This piece explains why your next batch of shiny ex‑consultants might be thinner on the ground, why consulting invoices and engagement models could look different, and why you may need to build more capability in‑house. We’ve skimmed the noise so you can spot the practical consequences fast.

Author style

Punchy: the changes flagged aren’t niche — they touch hiring, promotions and the advisory ecosystem. Read the detail if you want to anticipate shifts in talent pipelines or how decisions get made post‑consultancy.