As generative AI transforms industries, consulting is next. Tools like McKinsey’s in-house AI platform “Lilli” are now drafting proposals and slide decks, automating work that was once billed by the hour. For some, this signals a crisis in traditional consulting. But for smaller, tech-native consulting firms, this shift isn’t a threat, it’s an inflection point.
In this article, we explore how AI disruption in consulting is changing delivery models, pricing, and client expectations, and why leaner, faster firms may be best positioned to lead the next era.
AI in Consulting: What’s Changing
Generative AI tools are now capable of producing structured content in seconds. Proposals, reports, even presentation drafts – what once took hours or days now takes minutes. Larger firms, with staffing pyramids built around junior analyst output, are most exposed. When AI handles 60-80% of that production, the business model starts to crack.
Smaller consulting firms, particularly those with tech-native operating models, are less affected. We already automate repetitive tasks, build AI into client workflows, and iterate fast. Instead of resisting change, we accelerate with it.
Unlike legacy players tied to institutional knowledge and slow-moving approvals, we can test different models, integrate copilots, and launch AI-driven features with agility. This flexibility is a clear advantage.
Why Smaller Firms Win on Speed and Delivery
Speed is no longer a nice-to-have, it’s the expectation. Clients want answers tomorrow, not next week.
Larger firms still move through multi-layered delivery loops: drafting, reviewing, formatting, approvals. Smaller firms like ours have less of that.
This isn’t just about technology, it’s a process shift. We don’t deliver static decks. We embed ourselves in conversations, co-create strategies, and use AI to test, validate, and adapt in real time.
When delivery happens in days – not weeks – clients win. And firms that are built for speed can outperform even the most prestigious names.
The Role of External Partners in the AI Era
There’s a myth that AI tools will make external consultants obsolete. But internal teams, while rich in context, often lack the time, political clarity, or technical bandwidth to implement change effectively.
That’s where external partners still matter, not just for insights but for execution.
Tech-native firms help teams go from AI outputs to real-world outcomes. We pressure test assumptions, guide implementation, and translate AI-generated ideas into business value. We also bring structure and accountability to decisions, something AI tools alone can’t do.
In the age of AI, consulting isn’t replaced, it’s redefined. Execution still wins.
How AI Is Changing Pricing, Staffing & Expectations
As delivery gets faster, pricing must evolve. If a proposal takes 4 hours instead of 40, hourly billing breaks. That’s why agile consulting firms already favor fixed-fee and outcome-based models.
These teams are hybrid by design – consultants, data engineers, and AI copilots working together. This lets them scale insight without inflating headcount.
Clients, too, are evolving. They expect transparency, co-creation, and tighter alignment. They want to see how thinking unfolds, not just the final result.
This environment rewards firms that are flexible, tech-savvy, and built for integration, not bureaucracy.
Conclusion: AI as a Multiplier, Not a Replacement
AI isn’t replacing strategy, it’s speeding it up. Clients still want clarity, challenge, and smart thinking. But now they expect it in days, not weeks, and they expect partners who know how to wield AI responsibly.
The real disruptor isn’t the tool. It’s the firm that knows how to use it.
For small, agile consultancies, this is a moment of equal footing. We may not have 10,000 employees, but we have speed, fluency, and the ability to deliver results faster and smarter.
That’s what modern consulting looks like in this day and age.