AI Is Changing the Structure of Consulting Firms
By: David S. Duncan, Tyler Anderson and Jeffrey Saviano
Source: Harvard Business Review | Posted by Datatribes on September 13, 2025
AI Isn’t Killing Consulting — It’s Reshaping It
The impact of AI on consulting isn't about extinction — it's about transformation. The traditional pyramid model of consulting, reliant on layers of junior staff performing research, analysis, and slide building, is being rapidly disrupted by AI tools that now do much of that work faster, better, and more affordably.
Generative AI, predictive models, and agent-based assistants are automating key tasks across firms like McKinsey (Lilli), BCG (Deckster), Bain (Sage), Deloitte (Zora), and PwC (Agent OS), shifting the value proposition of consulting away from scale and toward speed, precision, and strategic depth.
The Collapse of the Pyramid
As AI replaces junior consultants’ workloads, the consulting pyramid begins to crumble. This doesn’t erase the demand for consulting — firms still need independent expertise and guidance — but it does force a rethink of how that value is delivered.
The Rise of the Obelisk Model
A new structure is emerging: the Consulting Obelisk — leaner, more agile, and AI-native. It replaces traditional hierarchies with three key human roles:
- AI Facilitators – tech-savvy early-career consultants managing AI workflows.
- Engagement Architects – mid-level leaders interpreting AI outputs and shaping strategies.
- Client Leaders – senior partners building long-term relationships and guiding clients through change.
This model is not about cutting costs — it's about reallocating human energy to where it matters most: judgment, creativity, and strategic impact.
AI-Native Boutiques: Leading the Way
Emerging firms like Monevate, SIB, Unity Advisory, and Disruptive Edge are pioneering this new model. These firms:
- Bypass traditional analyst layers.
- Use AI to produce insights and prototypes in days, not months.
- Operate with small, senior-heavy teams.
Unity Advisory, for instance, eliminates entry-level hires entirely, using agile pods of senior consultants and proprietary AI tools to deliver fast, conflict-free strategy support.
Why Traditional Firms Will Struggle
The consulting pyramid is deeply embedded — in culture, economics, training models, and compensation structures. Even as firms invest in AI, many treat it as a bolt-on rather than a reason to re-architect delivery from first principles.
Key barriers include:
- Incentives tied to headcount and billable hours.
- Outdated workflows that resist lean transformation.
- Lagging cultural and talent realignment.
Implications: A Call for Reinvention
Firms that continue to rely on junior-heavy models risk becoming slower, more expensive, and less relevant. Those that embrace the obelisk model can unlock:
- Smarter workflows powered by AI.
- Redesigned talent strategies focused on fluency in AI and data systems.
- Ethical governance models embedded directly in team workflows.
Jeffrey Saviano, one of the authors and an AI ethics researcher at Harvard, stresses the need for firms to proactively govern AI themselves — not wait for regulation. Ethics in the obelisk model must be embedded, distributed, and accountable.
Bottom Line
This is not a time for incrementalism. The firms that will lead the future are those that act now to reimagine consulting from the ground up — not just with tools, but with new thinking, structures, and mindsets.
Consulting isn’t dying — but the pyramid is. And the obelisk is rising in its place.
photo credits: HBR Staff/Pexels