Consulting Industry Faces Major Shift as AI Restructures Workforce Dynamics
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Contributed by: Bill Russell
Summary
Usman Sheikh discusses a notable shift in the consulting industry characterized by atypical corporate restructuring that affects senior staff with extensive experience, contrary to past layoffs that targeted junior employees. This trend, occurring during the busy consulting season, signals that firms are responding to the challenges posed by rapid advancements in artificial intelligence, which streamline tasks previously performed by analysts, as well as clients creating their own data teams. The rise of Software as a Service (SaaS) has further reduced the need for traditional consulting services, leading to a commoditization of analysis and a decline in premium fees. Sheikh anticipates a future where consulting firms will adopt smaller, more agile teams to meet client demands, shifting away from fixed staffing models and larger hierarchical structures.
