Consulting 2024 Wrapped (Part 3: 2025 Opportunities and Predictions)

By: Kevin Plexico, Sr. Vice President of Information Solutions at Deltek

The consulting industry faced a turbulent 2024, marked by global uncertainties, economic shifts, technological disruptions and evolving client needs. From adapting to post-COVID realities to navigating AI adoption and overcoming client indecision, consulting firms had to innovate and adjust strategies to stay competitive. Recently, we asked some of the top industry thought leaders to discuss the challenges they faced this year and the opportunities they see for 2025 and the future. Part 3 of our series focuses on opportunities and predictions for 2025.

Opportunities and Predictions for the Consulting Industry in 2025

As the consulting industry looks toward 2025, opportunities abound for firms ready to adapt to shifting client demands and market dynamics. Many of the predictions for 2025 focused on AI and the different ways in which it will change the industry:

Prediction: AI as a Catalyst for Change

AI's impact on consulting is both profound and multifaceted, offering opportunities and challenges in equal measure. Luk Smeyers and Florian M. Heinrichs of The Visible Authority noted that AI projects often struggle to deliver on their promises, creating pressure for consultancies to demonstrate results. "AI will remain at the top of clients' minds in 2025, and work will center on areas like strategic reviews, pilots and advice on regulation," they explained. However, large-scale implementations remain elusive, signaling that 2025 will likely focus on experimentation and targeted applications.

Jennifer J Fondrevay, founder of Day1 Ready™, emphasized the transformative potential of AI, particularly in automating routine tasks and enhancing data analysis. "AI is set to revolutionize the consulting industry by automating routine tasks, enhancing data analysis and providing deeper insights," she said. Yet, she warned against over-reliance, stressing that consultants must leverage their unique expertise: "Our value lies in offering guidance and solutions built on our knowledge and wisdom, born from experience. The greatest opportunity remains what it always has been—to distinguish ourselves from the competition by offering unique and valuable insights beyond the noise."

Jason Mlicki of Rattleback highlighted the competitive pressure AI is creating, stating, "Clients are experiencing a lot of FOMO and are over-investing to catch or keep up. Virtually every consulting firm needs to have a POV on how AI is affecting the markets and clients they serve." His perspective underscores the need for consultancies to stay ahead of AI trends to maintain relevance.  Andy Jordan, President of Roffensian Consulting S.A., agrees that AI will continue to drive a large percentage of opportunities within the consulting industry.

Prediction: Expanding Practical AI Applications

Several leaders shared practical applications of AI that are already transforming consulting practices and some they see expanding in 2025:

• Content Creation and Marketing: Scott Montgomery of Worldgate, LLC, highlighted Generative AI's role in automating marketing efforts and enhancing social media activities.
• RFP and Proposals: AI will continue to allow consulting firms to generate tailored proposals faster and more accurately. It also minimizes manual effort by identifying key information within the RFP and suggesting relevant answers based on past responses and company data.
• Data Analysis: Consulting firms are using AI-driven analytics to uncover trends, predict future outcomes and offer actionable insights
• Enhanced Client Interaction: Many of our experts discussed the ways in which AI-driven chatbots and virtual assistants are being deployed to enhance client interaction, enabling firms to offer 24/7 support without straining their human resources.
• Regulatory Compliance: Scott Montgomery pointed to AI's ability to "automatically update employee records in accordance with state-specific regulations," streamlining HR processes for his organization.
• Autonomous Project Execution: Looking forward, the integration of artificial capable intelligence (ACI) could redefine the consulting value proposition. Faheem Moosa of Consulting Leap envisions a future where AI agents autonomously manage tasks like market research, delivering insights with unprecedented efficiency.

Firms that recognize the evolving nature of AI and creatively apply the right tools will stand out in their field, achieving true differentiation.

Prediction: Boutique Consulting Firms on the Rise

A significant trend for 2025 is the shift toward boutique consultancies. Luk Smeyers and Florian Heinrichs observed, "Many client organizations express a readiness to move from large traditional consultancies to specialized boutique firms." Several factors drive this shift:

1. Disillusionment with Big Firms: Clients are increasingly wary of large firms due to disappointing outcomes.
2. Demand for Expertise: Complex challenges require specialized knowledge that smaller consultancies can provide.
3. Agility and Responsiveness: Boutique firms offer faster, more adaptable solutions.
4. Direct Access to Senior Talent: Clients value the personalized experience that boutique firms deliver.

For consultants, this trend represents a golden opportunity. As Jennifer J. Fondrevay put it, "The greatest opportunity remains what it always has been – to distinguish ourselves from the competition by offering unique and valuable insights beyond the noise." Faheem Moosa shared a similar sentiment, "The biggest opportunity in consulting in 2025 isn't much different from recent years—it's the chance for consulting founders to share their knowledge on a wider scale."

Summary: The Consulting Landscape in 2025

The consulting industry is on the brink of a transformation driven by AI and shifting client expectations. Our experts discussed serval key opportunities, including:

• Leveraging AI for Differentiation: As AI continues to evolve, firms that creatively apply the technology will stand out. Moosa summed it up nicely: "Firms that recognize the evolving nature of AI and creatively apply the right tools will stand out in their field, achieving true differentiation."
• Educating the Market: Sharing expertise through digital platforms and thought leadership will build trust and authority, attracting new business.
• Adapting to Client Needs: Whether through boutique services or innovative AI applications, consultancies must remain agile and responsive.

As we move into 2025, the consulting industry must navigate these changes with a combination of innovation, expertise, and adaptability. By embracing AI thoughtfully and staying agile, innovative and client-focused, consulting firms can position themselves as indispensable partners and take advantage of market opportunities. Speaking of consulting opportunities, make sure to watch the 2024 Consulting Year-in-Review Roundtable, where industry leaders discuss the challenges they faced in 2024 and the opportunities they see for 2025 and the future. We reviewed tips to tackle uncertainty, discussed how consulting firms use AI and shared best practices to improve efficiency.

Thank you to our consulting partners who helped with this effort:

• Andy Jordan, President of Roffensian Consulting S.A.
• Dave Hofferberth, Managing Director, Service Performance Insight (SPI)
• Faheem Moosa, Founder of Consulting Leap
• Jason Mlicki, Principal of Rattleback
• Jennifer J Fondrevay, Founder & Chief Humanity Officer at Day1 Ready™
• Luk Smeyers, Founder of The Visible Authority
• Sean McDermott, CEO of Windward Consulting
• Scott Montgomery, Chief Customer Officer at Worldgate, LLC
• Tissa Richards, CEO and Leadership Expert