Consulting Point notes that the debate about whether AI will affect consulting has effectively ended. Generative AI is now widely embedded across research, analysis, documentation and proposal development. In a short period, these tools have moved from experimentation to everyday use.
However, adoption alone does not equate to transformation. Most firms are applying AI to existing activities rather than redefining how value is created and delivered.
Efficiency Versus Value
AI has accelerated delivery. Tasks that once took days or weeks can now be completed far more quickly. While this improves efficiency, it also introduces a fundamental tension within traditional consulting models.
If less time is required to produce work, the basis of time-led pricing becomes harder to defend. Consulting Point believes this is why the billable hour is coming under increased scrutiny, not as a future risk, but as a present commercial challenge.
Rethinking Commercial Models
In response, firms are experimenting with new approaches. Some are investing heavily in AI capabilities and repositioning themselves as transformation partners. Others are exploring outcome-based pricing, subscription models, or blended fee structures.
These shifts are complex and often uncomfortable. They require firms to reassess long-standing assumptions and have more transparent conversations with clients about value and expectations.
The Human Impact of AI
AI also changes how consultants work. Increased speed often leads to higher expectations, with fewer people expected to deliver more output. Consulting Point observes that this can create pressure rather than sustainable productivity, particularly when reflection and judgement are squeezed by constant acceleration.
This dynamic risks blurring the line between efficiency and effectiveness if not actively managed.
From Information to Insight
AI excels at synthesising existing information, but insight requires interpretation, context and judgement. The consultants who remain most valuable will be those able to challenge AI outputs, understand organisational realities, and apply experience to ambiguous situations.
This distinction becomes even more pronounced in high-growth markets, such as Saudi Arabia, where AI is being used to accelerate large-scale transformation rather than reduce costs. Expectations of senior advisors in these environments are rising accordingly.
Consulting Point believes AI is not replacing consulting, but revealing its true value proposition. As low-value effort is stripped away, firms must decide whether they are selling hours, outputs, or clarity of judgment.
The billable hour may persist, but it will be questioned more directly than ever before. The firms that succeed will be those willing to rethink their operating models, commercial structures and talent expectations, rather than simply layering new tools onto old assumptions.