Business Insider reports that investor Kevin O'Leary said on "The Founder's Mindset Podcast" that companies he backs are bypassing traditional consultants and turning to AI for tasks once outsourced, citing lower cost. O'Leary is quoted saying this shift has unfolded "in the last 24 months." Business Insider also reports that major consultancies are increasing AI-related work: McKinsey says about 40% of its work now comes from AI-related projects, BCG reported 20% was AI-related in 2024, and Accenture consolidated services into an AI-focused unit called "reinvention services." The article frames the situation as both a threat and an opportunity for large consulting firms.
What happened
Business Insider reports that investor Kevin O'Leary said on "The Founder's Mindset Podcast" that companies he backs are skipping external consultants and going straight to AI for problems they would previously hire firms to solve. Business Insider quotes O'Leary: "Even the companies that I invest in that used to use a lot of consultants... are first going to AI, which they can do for a lot cheaper." He is also quoted saying, "This has only been the last 24 months."
What happened (continued)
Business Insider reports that large consultancies have been shifting work toward AI: McKinsey says about 40% of its work now comes from AI-related projects, BCG said 20% of its work was AI-related in 2024, and Accenture reorganized several units into a single AI-focused unit called "reinvention services," per Business Insider.
Editorial analysis - technical context
Companies automating advisory tasks often rely on a mix of data integration, model-driven scenario analysis, and retrieval-augmented generation workflows to synthesize recommendations at lower cost. Observed patterns in the sector show that routine tasks such as market-sizing, distribution-scenario modeling, and policy drafting are the most automatable, while high-touch change-management and client-facing implementation remain more human intensive.
Industry context
Business Insider reports consultancies are also adopting AI, developing internal tools, piloting solutions with clients, and hiring forward-deployed engineering teams. Industry observers note a common pattern where incumbent service firms both compete with and resell technology from Silicon Valley, creating hybrid delivery models that blend human expertise with ML-powered automation.
What to watch
Observers following the sector will watch for changes in consultancies' revenue mix toward AI engagements, client procurement choices favoring in-house AI pilots, metrics on automation replacing repeatable analysis work, and hiring trends for "forward-deployed" engineers versus traditional consultant headcount.
Scoring Rationale #
Investor opinion piece (Kevin O'Leary podcast comments) combined with reported stats on consulting firms' AI revenue mix. The adoption signal is real but the primary evidence is anecdotal commentary from a single investor rather than disclosed financial data or independently verified consulting metrics. Solid context for practitioners tracking AI-driven enterprise workflow automation, but not a data-driven or technical story.
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