Enterprise leaders face relentless pressure to transform faster, operate leaner, and deliver measurable impact at scale. Strategic advice alone is no longer enough. They expect consulting partners to deliver solutions that move at the speed of artificial intelligence (AI) rather than the pace of traditional projects.
That shift is exposing the limits of the traditional consulting model, which was built for a world of slower cycles, linear transformations, and manual delivery. The core premise that human-led analysis drives enterprise value is being fundamentally reexamined. With AI introducing new client expectations and service dynamics, clients want more than recommendations—they expect outcomes that can be delivered continuously, not periodically.
This is not just a shift in tools. It’s a rearchitecture of how value is delivered, bought, and governed. IBM and HFS Research surveyed 1,002 senior executives across 16 industries and 14 countries to understand how enterprise demand is reshaping the consulting model.
Key insights
-
-
The traditional consulting model struggles to meet today’s enterprise demands
The enterprise trust gap is widening. Only 13% of leaders rated traditional consulting as “highly effective,” and 65% said it no longer delivers real value. The model takes too long, lacks embedded intelligence, and fails to justify its cost.
-
AI is redefining consulting’s core, not just improving it
Eighty-three percent (83%) of executives said AI-powered consulting delivers greater value than traditional approaches, and usage is expected to triple within two years. AI is not just assisting consultants; it’s delivering core service functions and redefining what consulting really means.
-
Human expertise is still essential, but it belongs upstream
Ninety-four percent (94%) of leaders said the most effective models integrate human expertise with AI. However, human contribution is being repositioned. Strategy, creativity, and critical thinking are most needed at the top of the value chain, not embedded in every delivery layer.
-
The economics of services is being rewritten
Effort-based contracting is being rapidly phased out. While 49% of contracts are still tied to headcount today, only 16% of the leaders expect to use this model within two years. Outcome-based pricing and platform-licensed pricing emerge as the default. Internally, firms must evolve their KPIs to reflect AI-infused value creation—not just utilization.
-
Most enterprises are demanding AI-powered services, but few are ready
Less than 30% of the organizations are fully prepared across any core dimension of readiness. Only 20% have governance structures to manage AI accountability, and just 14% use AI-specific contracts. 63% are highly concerned about managing multiple providers.
-
Orchestration is the new premium
Nearly two-thirds (63%) of executives are highly concerned about managing vendor sprawl. Just 19% expect to manage integration and governance across AI providers themselves. Clients need partners that can ensure interoperability across AI platforms, reusable agent libraries, and seamless handoffs—not proprietary lock-in.
These findings are more than augmentation. They signal a fundamental shift in how services are structured, delivered, and valued.
To read the complete report, click the download button below.