04/12/2025

Beyond the Algorhythm: Why Consultants Still Matter in the Age of AI

Hi ChatGPT! Can you replace a consultant?

We will be honest: when we first heard about AI taking over consulting, we panicked a bit. Sitting in our strategy class, watching demos of AI tools churning out market analysis in seconds, we wondered what the point of our degrees was. If ChatGPT can do a SWOT analysis in 30 seconds, what is left for us?
Then we interviewed Ms. Khushi Gupta, a consultant at GeeBee Consulting, and everything clicked. The real story is not about AI replacing consultants—it is messier, more interesting, and frankly, more human than that. More specifically, we wanted to understand: as AI takes over analytical tasks, how must the consultant-client relationship itself evolve? This question matters because the nature of consulting value is fundamentally shifting from delivering insights to co-creating implementation strategies.

The Reality Check 
AI is not some future threat, it is already embedded everywhere. Generative AI, machine learning, and automation have gone from experimental toys to core infrastructure in practically every industry. Thanks to AI-as-a-service platforms, even boutique consulting firms can access tools that used to cost millions.
But here is the catch, as Ms. Gupta explained during our conversation: "Companies are split into two camps: those using AI strategically with proper governance and ethical frameworks, and those just slapping it onto everything hoping something sticks." The firms treating AI like just another software purchase are struggling, while those thinking strategically about implementation are pulling ahead fast. This divide reveals something crucial: the competitive advantage is not in having AI, but in knowing how to integrate it into human workflows.

Where AI Actually Delivers
What AI does well is genuinely impressive. Data analysis that would have taken weeks now happens overnight. Scenario modelling that required entire teams can run dozens of simulations simultaneously. As Gupta noted, "Modern AI-powered tools process vast amounts of data faster and more accurately than traditional methods, leading to sharper insights."
Consider sentiment analysis on customer feedback. Traditional methods often miss subtle patterns in what customers actually want. AI can catch these nuances, enabling more targeted campaigns. She shared a concrete example from her work: "One project saw customer engagement jump 12% in six months after integrating AI-discovered insights." The technology identified preference patterns that focus groups and surveys had completely overlooked.
Another example from her experience illustrates the time-saving potential: a manufacturing client saved 30% of project time by automating market trend analysis. That freed-up time went into strategy workshops and actual client conversations, the work that actually moves the needle. As She emphasized, "We redirected that time toward activities that truly drove value and client satisfaction."

What Remains Beyond AI's Reach
We asked : Some tasks are perfect for automation: data cleaning, basic forecasting, competitive intelligence gathering. But other aspects of consulting? "No chance," replied Gupta emphatically.
Reading a boardroom, for instance. During restructuring projects, consultants spend considerable time building trust with anxious employees, navigating unspoken office politics, figuring out who is holding back information and why. "That is not a data problem, it is fundamentally a human problem requiring emotional intelligence no algorithm can replicate," She explained from her direct experience with change management initiatives.
Or take contextual judgment. Pure data might say "do X," but when working with clients in regions with specific regulatory quirks or cultural nuances, "X" might be completely unrealistic. Gupta recalled working with a financial services client where a purely data-driven strategy would have ignored local governance complexities that impacted execution. The numbers may say one thing, but reality often says another.
This raises a critical question for the profession: how do consulting firms systematically train their consultants to develop both contextual adaptation and creative thinking in an age where pattern recognition is automated? Creativity poses another challenge for AI. While algorithms excel at pattern recognition, genuinely novel strategies still require human intuition and lateral thinking. As She put it, "The most successful strategies often work precisely because they do not follow historical patterns."

The Human Element: Where Implementation Truly Happens
Implementation challenges reveal AI's limitations most clearly, and Gupta's experience with a logistics company perfectly illustrates this. The company implemented AI route optimization, analyzing traffic, weather, and delivery schedules in real-time. Technically flawless: the system delivered 15% fuel savings in the first quarter, according to Rajiv Mehta, the company's COO who worked directly with Gupta on the project.
Except the drivers hated it. "The AI suggested routes that ignored years of local knowledge—shortcuts not on any map, streets with chronic traffic issues the data had not captured," She explained. The technology was smart, but it was not wise.
The solution was not technological. As She described their approach: "We built feedback systems where drivers could share their expertise with the AI. We ran workshops so drivers felt involved rather than replaced." Mehta played a crucial leadership role by openly endorsing this collaborative approach and emphasizing that AI was a tool to support, not replace, human expertise. Once drivers had a voice in the process, resistance transformed into collaboration. The AI improved because humans stayed in the loop.
This experience reveals something fundamental about how quicker AI-enabled feedback loops are changing the consultant-client dynamic. Rather than consultants disappearing for months and returning with polished recommendations, the process becomes genuinely collaborative and iterative. But this shift also raises questions: what is the client's role in this new dynamic? How do we ensure clients develop the capability to continue this human-AI collaboration after consultants leave? These questions will define successful implementations going forward.

What This Means for the Future of Consulting
So what skills actually matter now? Data literacy is non-negotiable - understanding what AI can and cannot do, interpreting outputs critically, knowing when to question recommendations. As Gupta emphasized, "Familiarity with AI tools and platforms is becoming almost as important as traditional business acumen."
But here is the twist: soft skills matter more now, not less. Since AI handles routine analysis, what remains is the genuinely difficult work - problem framing, ethical considerations, stakeholder management, and relationship building. The human stuff. "Adaptability, critical thinking, and emotional intelligence have gained even more importance," She observed, noting how consultants must now focus on "areas where human judgment is irreplaceable."
Modern consulting teams work far more iteratively than even five years ago. AI enables rapid prototyping of strategies and faster feedback loops. She described a recent digital transformation project with a financial services client where her team used AI-driven simulations to iteratively test different customer engagement models. This agile method helped us quickly identify the most promising strategies and secure buy-in from stakeholders much faster than traditional linear approaches.
Clients appreciate continuous involvement instead of being handed polished decks at the end. This methodological shift from waterfall to agile consulting represents more than just faster delivery. It fundamentally changes the value proposition, consultants are less like external experts delivering answers and more like collaborative partners co-creating solutions.

AI is not replacing consulting - it is forcing the profession to evolve, and probably making it better. The consultants who will succeed are those comfortable with hybrid approaches; letting machines handle heavy analytical lifting while focusing human energy on creativity, empathy, and strategic thinking.
After our conversation with K. Gupta, we are not worried about our careers anymore. If anything, we are more excited. The tedious work is getting automated. Good. What remains is the interesting part: the messy, creative, human aspects of strategy that actually make a difference.
The question is not whether AI changes consulting which it obviously does. The real question is whether consultants adapt, recognising their value lies not in competing with machines at computation, but in offering what only humans provide: judgment shaped by experience, creativity sparked by intuition, and the empathy that transforms good advice into real impact. Most importantly, as the consultant-client relationship becomes more collaborative and iterative, success will depend on developing new capabilities - not just in consultants, but in clients themselves - to navigate this human-AI partnership long after any engagement ends.

Akash ANAND, Hamza BRIDAA & Matthieu PIETRINI

Students of Audencia's MSc "Business Strategy and Consulting"

October 2025