AI-Powered Consulting Forces Reckoning: 65% of Enterprises Say Traditional Models No Longer Deliver Value

New study from HFS Research shows enterprises turning to AI-powered consulting in droves, leaving traditional models struggling to prove relevance. 

NEW YORK, Nov. 11, 2025 /PRNewswire/ -- Traditional consulting is failing to keep pace with the speed, intelligence, and adaptability that enterprises now demand, according to a new Market Impact Report by HFS Research and sponsored by IBM. The global survey of 1,002 senior executives across 16 industries and 14 countries reveals a deep shift away from human-led, effort-based consulting models toward AI-powered, outcome-driven approaches. 

Key findings include: 

• 65% of enterprises say traditional consulting models fail to deliver real value 
• 83% of executives report AI-powered consulting delivers greater value than traditional approaches 
• Headcount-based contracts are collapsing. While 49% of contracts today are tied to staff numbers, only 16% of leaders expect to use this traditional model within two years 
• 63% are highly concerned about managing vendor sprawl as AI service ecosystems expand 

"Consulting as we've known it is over. AI has blown up the model where armies of consultants spend months producing recommendations no one implements. If your consulting partner can't deliver measurable outcomes at the speed of AI, they're obsolete," said Saurabh Gupta, President, Research & Advisory Services, HFS Research. "This is the reckoning—and the industry won't survive it without tearing up the rulebook."

The research warns that while demand for AI-powered consulting is surging, most enterprises are far from ready. Fewer than 30% are fully prepared across workforce, data, governance, and vendor management dimensions. Only 20% have governance structures in place to manage AI accountability, and just 14% use AI-specific contracts. 

"Enterprises are done paying for advice that moves too slowly. They want consulting that delivers outcomes continuously, orchestrates across ecosystems, and matches the speed and intelligence they are building internally. AI isn't just enhancing consulting, it's rebuilding it from the ground up," said Dana Daher, Executive Research Leader at HFS Research and author of the study. 

Other insights from the study include: 

• Only 13% of leaders rated traditional consulting as "highly effective," revealing a major trust gap. 
• AI-powered consulting usage is projected to triple within two years, from 12% to 35% of services delivered. 
• Outcome-based pricing is set to become the dominant model, leapfrogging headcount-based contracts within two years. 

The study also highlights the orchestration challenge: most executives are worried about managing vendor sprawl, yet only a small fraction (19%) expect to handle integration and governance themselves. The majority will rely on lead service providers or external advisors to coordinate their AI ecosystems. 

"The traditional consulting model is changing rapidly because of AI. Consulting firms using AI driven proprietary tools, technologies and methods to deliver solutions more efficiently to their clients will outpace competitors," said Matt Candy, Global Managing Partner for Strategy & Transformation at IBM Consulting. "IBM is fusing human experience with our own AI technology + AI technology from strategic partners to scale and accelerate our clients' transformation through our IBM Consulting Advantage platform. When we leverage AI tools with human engagement, we are able to deliver faster, more scalable impact." 

Download the full report here: https://www.hfsresearch.com/research/consulting-that-delivers/ 

About HFS Research
HFS Research is a leading research and advisory authority on enterprise transformation, serving Fortune 500 companies with fearless insights and actionable strategies. With unparalleled access to Global 2000 executives and deep expertise in AI, automation, and digital business models, HFS empowers organizations to make confident decisions that create sustainable competitive advantage. For more information, visit www.hfsresearch.com. 

SOURCE HFS Research