I spotted a set of consulting related stories. I think there’s a larger story to tell.
The consulting industry is facing a significant shift that could make it increasingly difficult for professionals to climb the career ladder. According to Revelio Labs, job postings in consulting have declined by 26% since peaking in 2022, with entry-level positions dropping by 54% year-over-year in June 2025. Analysts suggest that this restructuring is due to several factors including overhiring during the pandemic, a growing emphasis on specialized expertise, and the increasing use of artificial intelligence, which could reduce the need for entry-level analysts. Notably, firms like McKinsey and Bain have reported a slowdown in hiring and fewer partners being promoted, indicating a challenging environment for newcomers aiming for long-term careers in consulting.
This shift, driven by evolving market dynamics, is expected to impact various sectors across the business landscape. Amid this change, the article emphasizes that firms are increasingly exploring innovative approaches to revenue generation, moving away from traditional equity models. For example, a hedge fund has begun seeking revenue cuts from the technology companies it supports, indicating a broader trend towards alternative financial strategies in the consulting realm. As these developments unfold, they signal a pivotal moment for both consulting firms and their clients, who may need to adapt to a new consultancy paradigm.
Over in Channelholic, In a warning to managed service providers, Art Gross, CEO of Breach Secure Now, highlights the emerging threat posed by AI consultants who are increasingly positioning themselves as experts in AI strategy. He notes that businesses worldwide are projected to spend $307 billion on AI solutions this year, according to International Data Corporation. Gross recalls a similar trend from 2009 when new consultants capitalized on government incentives to sell electronic health record services, undermining established providers. He emphasizes that these new AI consultants often lack deep knowledge of AI but excel in sales, directly appealing to company management with promises of returns on investment and efficiency. To combat this, Gross recommends that managed service providers begin offering their own AI services or partner with other vendors to develop capabilities and maintain their competitive edge.
Why do we care?
Consulting is getting squeezed. Revelio says postings are down 26 percent, entry-level roles down over 50. The big firms aren’t growing armies of analysts anymore—AI and specialization are eating that work.
And right on cue, a wave of “AI consultants” shows up. Remember 2009, when consultants sold EHR systems to every doctor’s office? Same playbook. They’re chasing 307 billion in AI spending this year, pitching executives directly, with slick sales and not much technical depth.
That’s your lane. Business process, digital transformation—that’s consulting. If you don’t step up with your own AI services, or partner to build them, you risk losing the client relationship to someone who talks a better game. Don’t let shadow consultants define AI strategy for your customers. Clients want answers to their labor problems, and if you don’t own that advisory role, someone else will sell them AI snake oil.