Consulting industry in 2025 faces challenges, but also opportunities
All around the world, companies large and small – and the consulting firms that support them in their projects – face a complicated set of issues. A new report from Nextcontinent lays out what the rest of 2025 may hold for the consulting industry.
The consulting industry has been on a bit of a rollercoaster ride in recent years, in more ways than one. Massive layoffs were seen at a number of firms as revenues have fallen. Accenture, for example, saw a $14 billion loss in market value due to uncertainty over the firm’s US government contracts caused by cuts from the Trump administration.
As various global challenges converge, the role of consulting is shifting in tandem with the changes that the corporate world is forced to confront. With constrained resources and a trend of slower decision-making, many companies are prioritizing more targeted, faster, and value-driven advisory support, according to Nextcontinent.
Geopolitical and economic troubles
Ongoing geopolitical conflict has been disrupting business as usual for years now. While the war in Ukraine has already been a factor since 2022, the escalating conflict in the Middle East now also complicates things further.
Sweeping U.S. tariffs also signal a protectionist trend that may lead to what some have called "deglobalization." If nothing else, shaking up global trade has again revealed the sensitivity of financial markets. The current unpredictability in global trade has added a new layer of complexity to strategic planning for multinational corporations and the consulting firms that advise them.
There is, of course, still some optimism despite the difficulties. Global GDP has continued to grow moderately and a majority of corporate leaders still feel confident in the business outlook for 2025, according to a previous study.
Many business leaders are shifting focus to operational efficiency, supply chain resilience, and sustainable growth, as they adapt to volatility and widening regional disparities in market conditions. Pro-business policies in the U.S. like deregulation and tax cuts are also driving demand for consulting services focused on growth and transformation.
“The strategy consulting sector is experiencing a moderate recovery that remains fragile and uneven,” according to the report.
“The industry’s primary revenue bases, North America and Western Europe, are facing a mix of structural maturity and economic unpredictability. Interestingly, smaller and more agile consulting firms appear to be weathering the storm more effectively.”
Supply chains
Global supply chains, already under increased pressure since at least the Covid-19 pandemic, continue to represent a major challenge. The combination of global political shifts, economic changes, new regulations, and cybersecurity risks is seriously straining supply chains.
Many companies are struggling to improve their resilience while also keeping up with sustainability and innovation. Supply chain leaders must move from reacting to problems to actively anticipating them.
Some business leaders are turning to digital tools like AI and blockchain to help make their supply chains stronger and more efficient. But many organizations struggle with unorganized data and limited integration of these technologies.
Consulting firms continue to play a role in closing this gap by offering services related to supply chains, like making data integration smoother and strengthening risk management.
Many consulting firms can assist clients in specific supply chain strategies like near-shoring. This helps reduce reliance on distant suppliers and lessens the risks associated with global political tensions. Whether attacks to ships in the Red Sea or a shutdown of the Strait of Hormuz, no one knows what tomorrow might bring.
Innovation
As technological advances continue, businesses feel the pressure to keep up in AI, data, and cybersecurity. There are, however, a lot of issues in successfully integrating new innovations. Many companies struggle with unstructured data and integrating AI into existing systems, for example.
Generative AI, in particular, is exploding in popularity as companies in a wide range of industries attempt to unlock extra value using an array of different types of tools. A previous study found that 95% of US companies are already using generative AI to some extent, though much of that is not organization-wide adoption, but rather individual use among employees.
AI is now also playing a big role in cybersecurity by fortifying defenses, yet also enabling more sophisticated attacks. Both offensive and defensive cyber strategies are being super-charged by increasingly complex AI tools, meaning companies need to keep up in this ‘cyber arms race’.
Automation, including robotics systems, is also playing a big role in some industries, like manufacturing. But it is not just physical robots, but also AI-powered chatbots, which are becoming ubiquitous in customer service departments. The boost to efficiency is often too good to pass up.
“The rapid acceleration of AI, data analytics, and automation presents a significant opportunity for consulting firms,” the report notes.
“While many businesses claim to be data-driven, the transformation remains slow. Consulting firms can help clients leverage AI to automate processes, improve decision-making, and enhance operational efficiency. Firms can provide specialized consulting services to help clients navigate this evolving landscape.”
Environmental, social, and governance (ESG)
Just as ESG initiatives were really picking up steam, with growing regulatory pressure and big corporate commitments, the entire movement for sustainability has been put into question after some major global shakeups – mainly from the U.S. – have made many companies begin to rethink.
With Trump again in the White House, the U.S. has again withdrawn from the Paris Agreement, the gold standard in terms of international frameworks for sustainability. Many diversity, equity, and inclusion (DEI) programs are also being dismantled, including in the consulting world.
“In Europe, despite historically stricter ESG regulations, there is now a trend toward regulatory simplification that increasingly mirrors the U.S. approach, leading to a clear slowdown in ESG enforcement,” according to Nextgeneration.
This shift has led to many companies rolling back or even abandoning their ESG targets, especially when they feel a financial crunch. Around 36% of companies are behind on Scope 1 and 2 emissions, while 51% are off track on Scope 3 emissions.
But as the climate crisis continues to be felt around the world and public angst grows, average people (as well as many corporate stakeholders) continue to demand action from companies. To be sure, ESG is not going away, it is simply evolving – and companies need to keep up.
The challenge here for consulting firms is to be able to assist clients in reevaluating their ESG goals to stay up to date with the changing regulatory landscape and consumer expectations.
“There is an opportunity to help companies create more effective, actionable sustainability strategies that align with both environmental goals and business performance,” the report states.
“Consulting firms can also help businesses stay ahead of regulatory requirements by offering compliance advisory services and leveraging technology, such as AI, to improve data management and reporting in line with ESG standards.”
Consulting in an unpredictable world
The main takeaway from the report is that the consulting industry faces a complex set of challenges in 2025. Firms must remain agile, focusing on AI, digital transformation, and supply chain optimization, while navigating complex regulations.
Success in the consulting industry hinges on evolving to meet client needs. Those that are best able to align strategies with emerging trends and regional nuances will be most likely to thrive in this unpredictable world.
