Elon Musk’s cost-cutting purge is underway. But the most interesting takeaway from The Economist article is this:
It’s about Palantir emerging as a potential competitor to the consulting industry.
Palantir, a data analytics company known for its work with governments and corporations, builds AI-driven platforms that analyze vast amounts of data to uncover patterns, risks, and opportunities.
I’ve been saying this for a while now about consulting. Disruption will likely come from outside the industry – from a tech firm that also employs specialists with deep domain expertise.
Independents and boutiques may be more niche but they still need to step up and roll with the times. Here’s my take on how AI and data firms are disrupting consulting and what it means for independent and smaller firms.
✅1. AI + Human Expertise: Faster Insights, Better Decisions
AI-powered platforms can rapidly detect inefficiencies, forecast risks, and optimize operations – transforming months-long consulting work into real-time insights. Rather than replacing consultants, AI enhances their ability to deliver faster, more precise recommendations that drive results.
✅2. Software is Scalable. Consulting? Not So Much
AI platforms provide ongoing value, unlike consulting firms that rely on billable hours. Companies may prefer decision-support tools over traditional advisory engagements, pushing consultants to integrate AI into their services or risk being replaced.
✅3. The End of Consulting’s “Black Box”
Traditional firms operate on proprietary frameworks, but AI brings transparency. Executives now access live insights, scenario models, and predictive analytics – without relying on consultants to interpret data for them.
✅4. Smaller Teams, More AI-Powered Solutions
AI-driven models are learning industry-specific problem-solving, reducing the need for large consulting teams. Companies may only require a small team of specialists with deep domain expertise – armed with AI tools – to deliver high-impact insights.
>> What This Means for Independent Consultants and Small Firms
⭐️Expertise alone won’t do. AI-driven analysis will be expected, but consultants who blend AI-driven insights with human judgment to provide rapid, actionable insights will have a unique edge and be in high demand.
⭐️Consulting teams will shrink. A single expert with the right AI and data tools could replace entire project teams. Small firms that embed AI into their process will be more competitive against larger consultancies.
⭐️Value delivery will shift. Clients will increasingly pay for solutions and outcomes, not just hours spent. The consultants who position themselves as AI-empowered problem solvers will win more business.
AI and data analytics firms aren’t just enhancing consulting – they’re competing with it. Independent and boutiques who embrace AI and data science will thrive. Those who don’t may struggle to stay relevant.
Ready to add $100k-$500k revenue to your consulting business in 12 months or less without burning out? Schedule a call and let me show you how.
Image credit: Dalle-3
