Survey says: UK consulting firms ramp up hiring amid market recovery

The consulting industry in the United Kingdom experienced a significant downturn following the post-pandemic boom, with major firms implementing substantial staff cuts throughout 2023 and 2024. In 2025, the sector is showing signs of recovery, primarily driven by increasing demand for artificial intelligence expertise and advisory services.

Market Overview: The UK consulting market is projected to grow by 5 percent in 2025, rebounding from a 3.4 percent contraction in 2024.

• Nearly half of global companies utilizing consulting services anticipate significant increases in spending over the next three years
• Technology consulting is expected to grow globally by 7 percent to $421 billion this year
• The Big Four firms (Deloitte, EY, PwC, and KPMG) are recovering from previous workforce reductions, including Deloitte’s 800 redundancies in 2023

AI-Driven Growth: Artificial intelligence implementation and strategy consulting have emerged as primary drivers of industry recovery.

• 67 percent of respondents in a Statista survey identified AI as the biggest growth area for UK consultancies over the next three years
• Consulting firms are investing an average of £1.9 million in AI technology over the next two years
• Companies are seeking consultants to integrate AI throughout their operations rather than treating it as an auxiliary function

Workforce Transformation: The consulting industry is adapting its hiring and operational practices to meet evolving market demands.

• Firms are actively recruiting for specialized skills in data, cloud services, cybersecurity, and risk management
• AI implementation is improving consultant productivity by automating routine tasks like PowerPoint presentations
• Recruitment strategies now emphasize candidates with both AI program management capabilities and strong interpersonal skills

Sector-Specific Demands: Different industries are driving consulting growth through varied needs and priorities.

• Energy, infrastructure, digital, and technology sectors represent the largest markets for consulting services
• Cost reduction projects rank as the third most significant growth driver, following AI and digital technology initiatives
• There is growing demand for consulting services related to extreme weather event resilience

Market Challenges: Despite positive indicators, the UK consulting sector faces ongoing hurdles in its recovery.

• The country’s economic downturn remains the biggest threat according to 60 percent of survey respondents
• Hiring levels are not expected to match those seen 5-10 years ago, partly due to increased consultant productivity
• Firms are increasingly relying on offshore hiring to manage costs while meeting demand

Future Trajectory: While the consulting industry’s recovery appears sustainable, it will likely follow a different pattern than previous growth cycles.

• The emphasis on AI and digital transformation suggests a fundamental shift in how consulting services are delivered
• Firms are focusing on developing interchangeable skills that can adapt to AI-driven changes
• The need for specialized sector expertise, particularly in senior roles, indicates a more nuanced approach to talent acquisition