No Bullsh!t Leadership – Episode 372

Title: Has AI Already Made Consultants Redundant?
Host: Martin G Moore
Release Date: October 14, 2025

Episode Overview

Martin G Moore explores the disruptive impact of artificial intelligence on the consulting industry. Using recent scandals (notably Deloitte’s AI-generated report for the Australian Government), Martin dissects where AI is eroding traditional consulting value and where genuine opportunities for consultants remain. Drawing on both recent media and long-term consulting trends, he projects a future where some consulting roles survive—and others are swiftly automated. The episode is candid, critical, and packed with actionable leadership insights for organizations grappling with consultant decisions in the age of AI.

Key Discussion Points & Insights

1. AI Disruption in Consulting (01:30–07:00)

• Consulting, along with accounting and legal, is ripe for AI-powered disruption.
• Recent Deloitte scandal: An Australian government report was mostly AI-generated (errors, fake sources, hallucinations) but billed at $440,000 to taxpayers.
  • Quote: “There it was in all its glory, resplendent with phantom references, typos and AI hallucinations. And they charged the client $440,000...” (02:00)
• This incident spurs questions about the ongoing value and mystique of large consultancies.

2. Public & Industry Reaction (07:00–12:30)

• Media and expert reaction focused on regulating AI use (better disclosure, ‘human-in-the-loop’, improved fact-checking).
• Martin challenges if “keeping a human in the loop” really addresses the deeper value question.
  • Quote: “For me, this misses the point.” (08:40)
• Traditional consulting value—access to vast data sets, specialized knowledge, global IP—is being commoditized by AI tools.

3. Consulting’s Changing Value Proposition (12:30–15:30)

• Martin questions why to pay a third party to operate an AI when “you can do it just as effectively yourself… for free.”
  • Consulting jobs have historically been entry points to business leadership; top executives were often shaped in these roles.
  • Now, AI risks eliminating the “grunt work” where young consultants learn the ropes, possibly damaging the long-term talent pipeline.

4. The Erosion at the Top: McKinsey & Industry Trends (15:30–18:30)

• Citing an Economist article, Martin highlights how AI could soon replace much of the “grunt work” even at strategy consultancies like McKinsey.
  • Quote: “Eventually, the AI revolution may come for McKinsey as well. Strategy projects combine deep cogitation with a good deal of grunt work... plenty of consultants already sound like a bot.” (16:15)

5. Previous Insights & a Framework for Consultant Value (18:30–22:00)

• Recap of episode 220: There are three reasons to hire consultants:
  • Lack of capability: Expertise not possessed internally.
  • Lack of capacity: Scaling resource for a finite project.
  • Lack of independence: Obtaining unbiased/investigatory opinion.
• AI is eroding the “capability” value proposition—the IP consultants once sold is now accessible to all.
  • “It’s fair to say that AI is making this particular value proposition a lot less compelling.” (21:10)

6. Where Consultants Still Add Value (22:00–25:30)

Three Areas Where Consultants Remain Relevant

1. Operational Efficiency:
   • In-depth, in-person observation and process scrutiny require human skill.
   • Quote: “You need humans to do this type of work, at least as it stands today.” (22:40)
2. Digital Disruption & Technology Integration:
   • Complex change management and system integration still require external advice.
   • Quote: “Ironically, the same consultants that face being disrupted by AI will be the ones who guide their clients organizations on how to implement it.” (23:10)
3. The ‘Comfort Blanket’:
   • Boards crave brand-name consultancy endorsements as legitimacy or insurance even for decisions management could make internally.

7. Where Consultants Are Losing Ground (25:30–30:30)

Three Areas Under Serious Threat from AI

1. Audit & Compliance:
   • Large-scale, repetitive review work will be automated.
   • Quote: “The concept of having 100 qualified accountants in an office in Manila... will begin to look less attractive as AI learns how to crunch the numbers.” (26:05)
2. Capital Efficiency & Investment Analysis:
   • Detailed financial modeling, scenario analysis, and risk assessment can be done at speed and scale by AI agents.
3. Strategy:
   • Once seen as a “black art,” much core analysis and war-gaming is becoming automatable.
   • Quote: “With AI, you’ll be able to run a thousand ‘what-if’ scenarios in a matter of seconds. I think that strategy… is definitely under threat from AI.” (29:30)

8. The Human Impact & The Future of Consulting (30:30–33:00)

• Entry-level consulting jobs—which formed the foundation of future partners—are drying up.
• Raises tough questions about talent development; “Does this erode the foundations of the consulting skyscraper?”
• Only the most astute clients, understanding what aspects are human-critical, will continue to extract value from consultants.

Notable Quotes & Memorable Moments

• On Deloitte’s scandal:
  “Even the most generous interpretation of the evidence casts Deloitte in an incredibly unfavourable light.” (04:00)
• On AI capability:
  “Why pay a middleman to prompt an AI GPT when you can do it just as effectively yourself? For free.” (12:25)
• On consulting talent pipelines:
  “If the future is a world where AI does the low end repetitive grunt work, how do people learn the ropes so that they can ascend to a level where human cognition still has currency?” (14:30)
• On the ‘comfort blanket’ effect of big brands:
  “The comfort blanket of a big brand… is sometimes as much an insurance policy as anything else.” (24:30)
• On commoditization of IP:
  “The type of knowledge that the top firms used to call IP will be truly commoditised.” (21:00)
• On engaging consultants post-AI:
  “Hiring a consultant who borrows your watch to tell you the time used to be almost a business cliché, but in the future it could be a career limiting move.” (32:20)

Timestamps for Key Segments

• 01:30 — Introduction to AI’s threat to consulting
• 02:00 — The Deloitte-Australian Government AI report scandal
• 07:00 — Industry/media response; regulations and checklists
• 12:30 — The decline of consulting’s unique value
• 16:15 — Highlights from The Economist’s “How McKinsey Lost Its Edge”
• 18:30 — Recap: Three reasons to hire consultants (Episode 220)
• 22:00 — Where consultants retain value: Efficiency, Technology, Comfort
• 25:30 — Where AI is taking over: Audit, Investment, Strategy
• 30:30 — The future for consultants and the risk to talent pipelines
• 32:20 — Final thoughts: Client responsibility in the AI era

Tone, Language, and Style

Martin’s style remains direct, insightful, and wryly humorous. He pulls no punches about consulting’s excesses (“breathtaking incompetence,” “borrows your watch to tell you the time”) and addresses leaders as pragmatic decision-makers. His use of anecdotes, pop culture references (e.g., Chad GPT), and self-deprecating asides keep the episode lively and engaging.

Conclusion

Martin G Moore makes a compelling case that consulting, once esteemed for exclusive knowledge and analytical horsepower, faces a future where only human-centric activities—observational analysis, complex change management, and reputational comfort—are safe for now. He urges leaders to become savvy buyers of consulting services, knowing what truly requires a human consultant and what can be automated. As AI renders much of consulting’s “secret sauce” obsolete, both clients and consultancies will need to radically rethink their roles.

Recommended Related Episode:
Episode 220 – Management Consultants: Are They Worth It? (A deep dive into when and why to engage consultants, with a pre-AI perspective.)