According to new research from Kognitiv, a Workday services partner consultancy, 80% of UK HR leaders want their consulting partners to better integrate artificial intelligence, while nearly half (44%) believe consultancies have been too slow to adapt.
The findings, published in The New Age of Consulting report, reflect a shifting mood among HR decision-makers in the UK and Germany—one that’s increasingly impatient with legacy consulting models and hungry for data-driven, AI-augmented solutions.
The Rise of AI-Powered Advisory
In the UK, nearly half of HR leaders (46%) think AI can replace most of the work consultants do. Even more telling, 70% said AI tools have already helped them reduce spending on consulting services.
That’s not just a warning shot—it’s an existential threat to consultancies built on billable hours and broad PowerPoint decks.
But HR leaders aren’t predicting a full AI takeover. The future, they say, is AI plus human expertise—a hybrid model where automation accelerates delivery, but human oversight keeps strategy and ethics in check. 59% of respondents expect that blend to define the next generation of consulting.
“This isn’t science fiction,” said Mark Grignon, CEO of Kognitiv. “It requires a human in charge, directing the work and maintaining oversight. Firms that aren’t figuring this out aren’t just limiting what AI can do for you—they’re sticking you with the bill for their own slow, expensive payroll.”
Paying the “Complexity Tax”
Despite their frustrations, 95% of UK HR leaders still use consultancies in some form. The relationship, however, is increasingly strained. Only 26% consider consultancies essential, while 16% describe their experience as outright disappointing.
When asked what grates most, leaders pointed to familiar pain points:
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Lack of cost transparency (44%)
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Limited service flexibility (42%)
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Inefficiency (41%)
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Failure to understand business needs (40%)
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Long, restrictive contracts (29%)
Kognitiv calls this the “Complexity Tax”—the hidden cost organisations pay when consultancy partnerships get bogged down in bureaucracy, outdated systems, and slow decision-making. It’s a tax on time, budgets, and innovation, and one that AI-driven models are starting to undercut.
Consulting’s “Adapt or Die” Moment
The takeaway is clear: HR leaders are voting with their budgets. They’re shifting spend toward AI-powered platforms and consultancies that prioritize agility, transparency, and measurable ROI.
The implications stretch beyond HR. Across industries, consulting’s traditional high-touch, high-cost approach is giving way to technology-first advisory, where data models and automation augment strategic insight.
In that sense, Kognitiv’s report isn’t just a wake-up call—it’s a blueprint for the next era of professional services: fewer slides, more solutions; fewer billable hours, more real-time intelligence.
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