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Chronicles

The story behind the story

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Source Global: the US consulting market is set to grow 7% in 2026, the fastest pace in the post-COVID era, as companies seek advice on profiting from AI

Financial Times Stephen Foley

Context & Ripple Effects

AI advisory had already become a material growth area for large consultancies: major firms reported rising demand for AI advice, while BCG had tied a growing share of revenue expectations to helping clients integrate the technology. Source Global's forecast extends that evidence from firm-level demand to the broader US consulting market.

The story matters because it frames AI less as a discrete technology purchase and more as an enterprise-change mandate requiring outside help to identify use cases, redesign operations, and capture returns.

First-order effects

  • Consulting firms serving US corporate clients gain a stronger demand backdrop for AI strategy and implementation work, while buyers are likely to expand spending on external advice aimed at turning AI deployments into business results.
  • AI-related work becomes a more central source of near-term growth for consultancies, reinforcing the shift already visible in BCG's integration-focused revenue targets.

Second-order effects

  • Competition for AI advisory work should intensify between established strategy and IT consultancies and smaller specialists, including the AI-focused startups formed by departing UK consultants.
  • Clients will have greater incentive to scrutinize whether advisory engagements produce measurable gains, creating pressure on firms to connect recommendations to implementation rather than sell AI strategy in isolation.

Third-order effects

  • If AI remains a primary consulting growth engine, the sector's value proposition will shift toward helping enterprises operationalize technology and organizational change, rather than relying chiefly on conventional advisory projects.
  • That shift could alter consulting economics: related coverage points to a move toward outcome-based project pricing as AI labs develop advisory arms, challenging the traditional billable-hour model.

The trend: AI adoption is expanding the market for implementation-oriented advisory services while pushing consultancies to prove outcomes, not merely provide expertise.