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AI Adoption Drives Shift Away From Traditional Consulting, Says Investor Kevin O'Leary
Kevin O’Leary, the Canadian investor best known for his role on Shark Tank, told The Founder's Mindset Podcast that the companies he backs are increasingly sidestepping external consulting firms in favor of AI solutions. Business Insider reports that the shift emerged over the past 24 months and that his portfolio firms turn first to AI because it can be deployed at a lower cost.
O’Leary’s remarks arrive amid a broader industry shift. McKinsey & Company says roughly 40 % of its work now comes from AI‑related projects, while Boston Consulting Group (BCG) announced that 20 % of its 2024 engagements were AI‑focused. Accenture has reorganized several service lines into a single AI‑centric unit called Reinvention Services, according to Business Insider. These figures show that large consulting firms are reallocating resources toward AI, developing internal tools, piloting solutions with clients, and hiring engineering teams that work directly on client sites.
The tasks most amenable to automation are becoming clearer. Business Insider notes that routine activities such as market‑sizing, distribution‑scenario modeling, and policy drafting can be handled by data‑integration pipelines, model‑driven scenario analysis, and retrieval‑augmented generation workflows. In contrast, high‑touch change‑management and client‑facing implementation remain more human‑intensive, suggesting that AI will augment rather than replace all consulting work.
Industry observers point to a hybrid delivery model emerging among incumbent service firms. These firms both compete with and resell Silicon Valley technology, blending human expertise with machine‑learning‑powered automation. Analysts predict shifts in consultancies’ revenue mix toward AI engagements, client procurement choices favoring in‑house AI pilots, metrics on automation replacing repeatable analysis work, and hiring trends that favor forward‑deployed engineers over traditional consultant headcount.
While the evidence is largely anecdotal—O’Leary’s comments are the primary source of the investor perspective—Business Insider provides corroborating data from the consulting firms themselves. The absence of disclosed financial data or independent verification means the story remains a snapshot of current industry sentiment rather than a definitive measurement of AI’s impact on consulting revenue.
In summary, AI adoption is reshaping the consulting landscape. Companies that have historically relied on external advisors are now turning to AI for cost‑effective solutions, a trend that has accelerated in the last two years. Major consultancies are responding by increasing their AI‑related work share, reorganizing services, and building engineering capabilities. The extent to which AI will continue to displace traditional consulting roles, and how firms will balance automation with human expertise, will be key questions for the industry in the coming months.
O’Leary’s remarks arrive amid a broader industry shift. McKinsey & Company says roughly 40 % of its work now comes from AI‑related projects, while Boston Consulting Group (BCG) announced that 20 % of its 2024 engagements were AI‑focused. Accenture has reorganized several service lines into a single AI‑centric unit called Reinvention Services, according to Business Insider. These figures show that large consulting firms are reallocating resources toward AI, developing internal tools, piloting solutions with clients, and hiring engineering teams that work directly on client sites.
The tasks most amenable to automation are becoming clearer. Business Insider notes that routine activities such as market‑sizing, distribution‑scenario modeling, and policy drafting can be handled by data‑integration pipelines, model‑driven scenario analysis, and retrieval‑augmented generation workflows. In contrast, high‑touch change‑management and client‑facing implementation remain more human‑intensive, suggesting that AI will augment rather than replace all consulting work.
Industry observers point to a hybrid delivery model emerging among incumbent service firms. These firms both compete with and resell Silicon Valley technology, blending human expertise with machine‑learning‑powered automation. Analysts predict shifts in consultancies’ revenue mix toward AI engagements, client procurement choices favoring in‑house AI pilots, metrics on automation replacing repeatable analysis work, and hiring trends that favor forward‑deployed engineers over traditional consultant headcount.
While the evidence is largely anecdotal—O’Leary’s comments are the primary source of the investor perspective—Business Insider provides corroborating data from the consulting firms themselves. The absence of disclosed financial data or independent verification means the story remains a snapshot of current industry sentiment rather than a definitive measurement of AI’s impact on consulting revenue.
In summary, AI adoption is reshaping the consulting landscape. Companies that have historically relied on external advisors are now turning to AI for cost‑effective solutions, a trend that has accelerated in the last two years. Major consultancies are responding by increasing their AI‑related work share, reorganizing services, and building engineering capabilities. The extent to which AI will continue to displace traditional consulting roles, and how firms will balance automation with human expertise, will be key questions for the industry in the coming months.
