Consulting Firms Race to Rebrand as AI-Native Tech Companies

The new consulting playbook

The consulting industry is undergoing its most significant identity shift in decades, with firms racing to position themselves as technology companies first and advisory services second. KPMG US CEO Tim Walsh made the transformation explicit at the World Economic Forum in January, declaring that "our firm is a tech company that delivers now on audit, tax, and advisory services."

For a firm with roots dating to 1897, the statement represents a dramatic departure. Rob Fisher, KPMG's vice chairman of advisory, acknowledged that a decade ago the firm would have described itself as a time-and-materials business focused on "smart people doing smart things." Today, clients increasingly demand subscription-style products and managed services rather than traditional strategy decks.

The shift extends across the industry's biggest names. PwC has restructured its entire training program around 30 core skills—15 AI-centric and 15 human-centric. In February, the firm introduced its first new career track in 170 years: an engineering track. EY is using AI as a training assistant to help staff anticipate role evolution, while McKinsey now uses its internal AI chatbot, Lilli, in recruitment.

Why it matters

This transformation reflects a fundamental change in what enterprise clients expect from consultants. Rather than external advisors who produce research and recommendations, firms must now deliver tangible tools, systems, and ongoing technical support. The shift creates a collision between traditional consulting and technology services, with implications for pricing models, talent requirements, and competitive dynamics. Consulting firms are becoming critical intermediaries in the AI boom, giving companies like OpenAI and Anthropic access to Fortune 500 clients while those clients still want the breadth and sector expertise of established firms.

Massive hiring and partnership shifts

The numbers tell the story. Accenture has added nearly 40,000 AI and data professionals in the past two years, according to recent annual reports. EY has brought on 61,000 technologists since 2023. These firms have also struck multibillion-dollar partnerships with OpenAI, Nvidia, Anthropic, and Microsoft to build internal tools and launch AI-enhanced platforms.

The work itself is changing rapidly. BCG reported in April that AI and tech-focused services now account for over 40% of its total global revenue, driven by 25% year-on-year growth in AI services. At McKinsey, AI initiatives represent roughly 40% of the firm's work, according to Alex Singla, a senior partner who co-leads QuantumBlack, the firm's AI arm.

Allison Heithoff, a consultant at midsize firm West Monroe, has witnessed the evolution firsthand. Her first years involved hands-on-keyboard work—gathering data, configuring systems, testing features. Five years later, AI handles much of that work, making her role more strategy-focused and technical despite her business administration background.

The gap between pitch and practice

Yet questions persist about whether the transformation is substantive or primarily marketing. Charlie Cheesman, a former senior AI consultant at EY who helped write the firm's UK AI strategy, told Business Insider that consulting firms remain "a long way from the frontier of what's possible" with AI. Professional services firms "were never built to be technical organizations," he said, and are having to change massively to keep pace.

Errol Gardner, global head of consulting at EY, pushed back on the notion that his firm's identity is fundamentally changing. "What we do is move clients from state A to state B in a safer way and as value-enabled a way as possible," Gardner said, describing AI as "a new tool in the toolbox."

Fiona Czerniawska, CEO of consulting intelligence firm Source Global, noted that while technology-related services have grown two to six times faster than traditional sectors over the past five years, most clients still think of top strategy firms as doing strategy and the Big Four as doing finance-related work. Client research shows that while 90% believe AI will affect service delivery, the share expecting significant impact has fallen from 60% in 2024 to 40% more recently.

There's also a pricing risk. Clients associate technology services with lower costs than traditional consulting, Czerniawska said. Firms that lean too heavily into the technology company positioning risk eroding the premium they've long commanded.

These details were first reported by Business Insider.