AI Is Reshaping How Consulting Firms Operate and Are Structured

The conversation around AI’s role in consulting often swings between two extremes — that it will either replace consultants entirely or simply make them more valuable. The truth lies somewhere in between. Consulting isn’t disappearing; it’s being redefined.

For decades, the consulting industry has operated on a familiar “pyramid” structure — a large base of junior consultants handling research, analysis, and modeling, supporting a small group of senior leaders who shape strategy and manage client relationships. This model has long driven the economics and identity of consulting.

AI is now disrupting that foundation. Tools such as generative AI, predictive analytics, and automated research systems are taking over much of the routine work that once filled the early years of a consultant’s career. As this transformation accelerates, firms must adapt their delivery models or risk fading into irrelevance.

At Disruptive Edge, an AI-native consulting firm led by David Duncan and Tyler Anderson, the team is experimenting with how AI can enhance every stage of consulting — from automating repetitive research to strengthening analytical and strategic output. The goal is not just speed, but precision: enabling consultants to focus on judgment, creativity, and meaningful client engagement. Alongside their coauthor, Jeffrey Saviano, an expert in AI governance and ethics, they are exploring how consulting firms’ structures — from talent development to governance — must evolve in this new era.

The Decline of the Pyramid

The fundamental reasons organizations hire consultants remain unchanged — access to expertise, external perspective, flexible capacity, and credible validation. What is shifting is how those needs are met.

Traditionally, consulting firms relied on armies of junior analysts to collect data, build models, and create presentation materials for senior consultants to interpret. Today, AI can do much of this work faster, cheaper, and often more accurately.

Leading firms are already adopting AI-driven solutions: McKinsey’s “Lilli” assistant is used by over 70% of its staff, reducing research time by roughly 30%. BCG’s “Deckster” generates presentation decks in minutes, while Bain’s “Sage” leverages the firm’s proprietary intellectual capital. Deloitte’s Zora and PwC’s agent OS are deploying agent-based AI systems that automate entire workflows.

The tasks being automated are not minor — they form the core of traditional junior consulting work and are increasingly encroaching on mid-level responsibilities. If AI absorbs the work that once justified thousands of billable junior hours, the base of the consulting pyramid will effectively vanish.


The Rise of the Consulting Obelisk

In place of the pyramid, a new structure is emerging — the consulting obelisk. It is taller, narrower, and built for agility rather than scale. This model depends on fewer layers, smaller teams, and higher leverage at every level. It revolves around three key human roles:

  • AI Facilitators – Early-career consultants skilled in advanced AI tools and data pipelines. They design and fine-tune AI workflows, accelerating insight generation and fostering a new kind of apprenticeship grounded in technical expertise and judgment.

  • Engagement Architects – Experienced consultants who define client problems, interpret AI outputs, and convert them into actionable strategies. They lead projects, integrate human reasoning with AI-driven insights, and ensure that solutions translate into tangible results.

  • Client Leaders – Senior advisors who maintain long-term relationships with executives, helping them navigate disruption and adapt their strategies to evolving technologies and markets.

These three functions — workflow execution, strategic synthesis, and relationship building — are essential for any consulting firm. Together, they form a sustainable pipeline for talent growth in an AI-driven environment.

The obelisk model reflects a deliberate move away from scale for scale’s sake. Its goal is sharper thinking, faster delivery, and leaner operations. More than a cost-saving adaptation, it’s a structural evolution of how consulting firms create value.


Comments

Popular posts from this blog