In this episode of “The Consultant’s Way Podcast,” hosts Dean McMann and Anthony Paluska discuss major shifts in the consulting industry. They open by highlighting the recent wave of layoffs across the Big Four firms, with 9,000 consultants let go and additional reductions in consulting budgets, particularly in Australia. This signals an unexpected talent influx, especially at the junior level, as younger consultants with a few years of experience now enter the job market in higher numbers than usual. The hosts suggest this may be partly due to overhiring during the previous years and waning demand in certain sectors, while others, like AI strategy consulting, continue to grow.
AI’s role in consulting garners considerable attention, as many firms have scaled AI-focused services. Some experts predict AI will become a billion-dollar consulting industry in a decade, not only for its impact on reducing operational costs but for its growing importance in developing corporate AI strategies. However, the introduction of AI also raises concerns about job displacement, as it automates tasks previously handled by junior consultants.
Geopolitical issues also loom large, especially in China, where consulting firms like PwC face restrictions due to national security concerns. U.S. political pressures further complicate consulting relationships with China, as some U.S. officials argue firms should avoid working with the Chinese government altogether. The hosts touch upon the industry’s reduced involvement in non-profit and diversity initiatives, attributing this shift to scrutiny and changing priorities amid layoffs. Finally, they ponder the possible effects of the U.S. election on consulting demand, especially regarding government spending policies that could either boost or reduce opportunities for firms. Overall, McMann and Paluska provide a candid assessment of an industry navigating economic instability, technological change, and geopolitical tension, with future growth paths that may significantly reshape its workforce and service offerings.
Anthony Paluska is a partner at McMann & Ransford, where he helps embedded Professional Services teams evolve into advisory-led growth engines. He advises PS leaders on portfolio transformation, service monetization, and go-to-market clarity.
He is also co-host of The Consultant’s Way, a podcast focused on highlighting industry leaders and expertise to help PS teams grow with intention.
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