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Federico
Coach

How AI Is Reshaping The Consulting Industry

Key Takeaways

  • AI is fundamentally changing how consulting work gets done. Repetitive research, analysis and production tasks are increasingly automated, while judgment, problem solving and client-facing work become more important.
  • The entry-level consulting role is not disappearing, but expectations are rising. Junior Consultants are expected to contribute more strategically and take greater responsibility earlier in their careers.
  • Candidates who combine strong consulting fundamentals with practical AI fluency can benefit from the shift. The key is not to compete with AI on speed, but to use it effectively while focusing on the judgment and critical thinking it cannot replace.

Few topics generate as much anxiety among the candidates I coach as AI. The question underneath it is always the same: if firms can now do in hours what used to take a junior analyst a week, why would they still hire me? It is a fair question, and the honest answer is that the entry-level job is changing faster than any part of consulting has changed in decades. But the conclusion most people draw from that (that the door is closing) is wrong. The work at the bottom of the pyramid is being compressed, not the demand for people who can think. If you understand what is actually shifting, this becomes one of the best moments in years to enter the profession, precisely because so many candidates are misreading it.

What AI is actually doing to the firms

The impact of AI on MBBs is undeniable. Each firm now runs an internal assistant trained on its own knowledge base: McKinsey has Lilli, Bain has Sage, and BCG has Navi, a proprietary assistant that navigates the firm's knowledge base, drafts materials, and surfaces insights. McKinsey reports Lilli handling more than 500,000 prompts a month, with around 30% time savings on the work of gathering and synthesizing information. These are not pilots. They are part of how the work gets done.

The commercial side is moving too. BCG has told investors it expects AI-related work to become a large share of revenue, and MBBs have signalled a shift toward pricing on outcomes rather than billable hours. That last point matters more than it sounds, because the billable hour is what historically justified large teams of juniors.

And the headcount signals are real. In 2025 and 2026 several firms cut roles or slowed hiring, with the analytical work at the base of the pyramid most exposed. But the picture is genuinely mixed, and this is the part the alarmist coverage skips. McKinsey has also signalled it intends to keep hiring at entry level while raising the bar for who gets in. BCG has been growing, tilted toward AI and tech specialists rather than generalists. The story is not "consulting is shrinking." It is "consulting is being reshaped", and the standard for entry is rising.

There is a useful way to picture this shift. In a Harvard Business Review article, "AI Is Changing the Structure of Consulting Firms," David Duncan, Tyler Anderson, and Jeffrey Saviano argue that the classic consulting pyramid (a wide base of juniors doing research, modelling, and analysis under a narrow apex of senior leaders) is giving way to what they call the obelisk: a taller, narrower structure with fewer layers, smaller teams, and more leverage at every level, built around AI facilitators, engagement architects, and client leaders rather than a large junior base. Whether or not the metaphor sticks, the direction it describes is the one already visible in the numbers above, and it points to the same conclusion: the base is thinning, and the work that remains is weighted toward judgment and client trust rather than volume.

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Why this is a threat if you do nothing

The classic entry-level value proposition (a smart graduate who can gather data, build a model, and turn it into clean slides faster than anyone else) is exactly the profile AI compresses best. That work is structured, high-volume, and document-heavy. If your entire pitch to a firm is that you are diligent and produce good output, you are competing directly with a tool the firm already owns.

This is not hypothetical. It is already happening to the market research and knowledge units inside MBBs. Their contribution was typically narrower than what a good junior consultant brings: largely retrieving and packaging information, with less problem-solving on top. That is precisely the task AI now does in a fraction of the time, which is why those functions are the first to feel the squeeze. The lesson for an aspiring consultant is direct: if your value is finding and organising information, the machine already does it faster.

The second-order effect is subtler. As firms shrink the number of juniors per case, each one is expected to operate closer to a manager: less producing slides from a brief, more directing the work and judging whether the output is right. The bar for what a first-year is expected to contribute is going up, not down. That is the real threat, and it is also, once you see it, the opportunity.

 

Why it is an opportunity for those who adapt

  1. The premium on judgment rises. When the mechanical work is cheap, the scarce thing is knowing which analysis to run, spotting when a number is wrong, and framing what it means for the client. AI produces an answer instantly; it cannot tell you whether it is the right answer to the right question. That discernment was always what separated good consultants from fast ones. Now it separates them earlier.
  2. The learning curve compresses in your favour. The tasks that used to consume a junior's first two years (formatting, first-pass research, assembling the base case) are the tasks AI absorbs. Handled well, that frees you to spend your early years on the parts that actually build a consultant: client exposure, structuring problems, forming a point of view. You can become genuinely useful faster than the generation before you, if you use the freed time deliberately rather than coasting on it.
  3. Fluency is now a differentiator, not a nice-to-have. Firms increasingly expect new joiners to manage AI workflows rather than work around them. The junior who can get a genuinely useful first draft out of these tools, and knows where they break, is more valuable than one who ignores them or trusts them blindly. Two years ago this was optional. It is quickly becoming table stakes, which means demonstrating it early sets you apart from a field that mostly still treats it as an afterthought.

 

What you can actually do about it

Know which AI skills actually matter. You do not need to code or become a data scientist; firms are not hiring juniors to build models. What matters is practical fluency with the everyday tools: getting a useful first draft of an analysis, a structure, or a research summary out of them, and knowing where they are wrong. That means being able to prompt well, sense-check what comes back against your own logic, and catch the confident errors these tools produce. The relevant skill is judgment applied to AI output, not engineering behind it. You can build it now, on your own prep, before you ever join.

Talk about AI the way a consultant would. In an interview, how you frame AI says more about you than any tool you have used. Do not oversell it as a magic solution, and do not dismiss it. Treat it as a lever with clear uses and clear limits, exactly as you would talk about any resource on a team. Have one real example ready of using it well on something you actually did, and be able to say plainly where you would not trust it. Almost nobody at your level talks about it this way, which is why it lands.

Once you are in, treat AI as leverage on the human work, not a substitute for learning it. Let it take the mechanical first pass, then spend the time you save on the parts that compound: understanding the client's business, building relationships with the people who staff the good cases, forming a genuine point of view. AI gives every junior the same free hours. What separates them is whether those hours go into coasting or into learning the parts of the job that actually count.

Do not compete where you will lose. Never position yourself, in an interview or on a case, as someone whose value is producing output quickly and accurately. That is the one contest you cannot win against a tool the firm already owns. Position yourself as someone who decides what is worth producing and whether it is right. That framing is available to you now, years earlier than it used to be, and it is the whole game.

 

A word on the fear itself

Consulting has been here before. When the spreadsheet arrived, a large part of the junior job was manual. The tool wiped that work out almost overnight. It did not shrink the profession. It moved the value up, toward deciding which analysis mattered and what the numbers meant, and it raised the bar for everyone who stayed. AI is the same shift on a wider front. Every real shift in this industry has looked, from the outside, like the end of the opportunity, and turned out to be a reshuffling of who wins inside it. The candidates who thrive through this one will not be the ones who out-produce the machine. They will be the ones who let it do what it is good at and concentrate on the judgment it cannot replicate.

 

Federico
Coach
Ex-BCG Partner, Interviewer & Career Advisor | Fully tailored approach

Common Questions About AI In Consulting

AI is unlikely to eliminate Junior Consultant roles entirely. However, it may reduce the amount of repetitive work and increase expectations for what entry-level Consultants contribute.

AI is particularly strong at tasks such as Research, information synthesis, First-Pass Analysis and creating initial drafts of materials. These are traditionally some of the most time-consuming tasks for Junior Consultants.

Judgment, Problem Solving, Critical Thinking and Client Communication will become even more important. Consultants also need to know how to use AI effectively and critically evaluate its output.

Candidates do not need to become Data Scientists or AI Engineers. Practical AI Fluency, such as prompting well, reviewing outputs and identifying errors, is much more relevant for most consulting roles.

Candidates should avoid presenting AI as either a perfect solution or a major threat. A stronger approach is to explain where AI creates value, where its limitations are and how human judgment remains essential.

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