Understanding the market for AI-related consulting services

Why it’s reasonable to be sceptical 

Wind the clock back to 2022-23: As Arthur C Clarke famously said, “Any sufficiently advanced technology is indistinguishable from magic,” and ChatGPT certainly looked magical. But the level of interest it produced was driven more by the need for “magical” solutions at a time when the geopolitical order looked fragile and inflation appeared to be spiralling out of control than by an understanding of the technology involved. Consulting firms immediately saw multiple opportunities here: AI strategy, addressing the ethics and risks around AI deployment, and AI implementation. And clients seemed equally positive, with 60% saying in 2023 that they were very likely to seek external advice about AI.  

But based on conversations with consulting firms and clients themselves, intention didn’t always translate into action. This is where some of the confusion began: Enthusiasm was high, but opportunities were slower to translate into meaningful projects. Projects were scarcer, shorter, and sometimes free (as firms scrambled to strengthen their expertise and build credentials). For the many major firms who’d invested heavily ahead of the curve of demand, this was a significant disappointment—one that colours perceptions today. 

Why I think scepticism is a mistake 

In our most recent survey of the global consulting market, we changed the question we asked to focus on what clients had done about AI rather than about their intentions. In Q2 2025, 81% of clients said they’d paid for support from consultants around AI in the previous 12 months—a percentage that rose to 88% in Q1 this year. More importantly, there’s evidence that the scope (and therefore cost) of projects is increasing. There are still many small-scale projects aimed at testing out the application of this technology and using it to address specific pain points, some of which are substantial. 

Significantly, however, our most recent survey shows the percentage of clients undertaking large, complex, and potentially transformative projects has tripled. Moreover, the proportion of clients receiving pro-bono work has doubled, suggesting that many firms are prepared to make an investment in their clients because they think they’ll get a positive return in the future.  

Using consultants to help make effective use of AI has gone from being ranked 11th out of a list of consulting services last year to being ranked first. It probably helps that, despite negative media coverage about the quality of work consultants deliver in this space, satisfaction is strikingly high: Ninety-seven percent of clients say they’re satisfied with the consultants’ work and 43% describe themselves as highly satisfied. 

But it’s not just the perceptions of consultants that have changed: Clients are generally more positive about the impact of AI on their own organisation. Fifteen percent of organisations say they are already widely deploying AI, compared to 10% last year, and 30% are increasingly eager to make use of AI because they expect it will give them a competitive advantage. There are signs, too, that some of the barriers to the effective use of AI are being tackled: Twenty-nine percent of clients say they’ve been investing in data infrastructure to support AI, 23% that they’ve been creating the internal governance and policies around AI they need. 

Plan for the second wave 

Of course, it’s possible that all these more positive indications fizzle out, especially if the war in Iran escalates, significantly increasing costs for client organisations again. But if the dawn of the internet age and the dot.com explosion—and implosion—around the millennium are a guide here, consultants were never going to make a lot of money out of the first wave of client activity. Now, as then, the AI technology is costly and not yet quite good enough and this is coupled with businesses who haven’t yet fully grasped how this new technology can add value and be exploited economically.  

To say there won’t be a substantial market for AI services is to ignore the lessons of history. It also runs the risk of turning your back on an opportunity that’s on the verge of becoming a mainstream consulting service. 

What should firms do next?

Source’s AI impact model will help your firm identify the threats and opportunities arising from global AI adoption, so you can focus your investment to create the most value. To discover how AI could reshape your firm, get in touch.