AI replacing – Kevin O’Leary says the companies he invests in are increasingly using AI for tasks that once went to consulting firms, and he expects consulting to become a short-term stop rather than a long career track. His comments come as major consultancies already repor
Kevin O’Leary doesn’t sound worried about the future of consulting so much as impatient with it.
The “Shark Tank” investor. currently focused on opening a hyperscale AI data center in Utah. said the companies he backs are already shifting away from consultants for certain kinds of work. On a recent episode of “The Founder’s Mindset Podcast. ” he described a pattern he’s seeing inside businesses—especially when decision-making involves specific vertical scenarios.
“Even the companies that I invest in that used to use a lot of consultants for very specific vertical situations, like changing retail distribution, or should they keep two tiers of distribution versus three, are first going to AI, which they can do for a lot cheaper,” O’Leary said.
In his telling, these companies are asking their internal management teams to test ideas directly, bypassing the traditional consulting workflow. “These companies. he said. are asking their internal management teams to test those ideas. bypassing the need for traditional consultants altogether.” He also estimated that the shift has been happening quickly: “This has only been the last 24 months. ” he said. adding how fast he believes he’s watching the move take hold.
O’Leary framed the change against a wider industry scramble. Over the past few years. consulting firms have raced to reinvent themselves as AI advanced—developing internal tools. piloting them with clients. hiring large teams of forward-deployed engineers. and building ties with AI startups across Silicon Valley. He acknowledged the threat while also pointing to the opportunity that many large firms see in the technology.
That tension shows up in the scale of AI work consultancies say they already do. McKinsey said about 40% of its work now comes from AI-related projects. BCG said 20% of its work was AI-related in 2024. Accenture. which reported earnings this week. consolidated multiple parts of its business—its strategy. consulting. song. technology. and operations services—into a single unit organized around AI called “reinvention services.”.
Those moves, in O’Leary’s view, align with a broader reality: consulting firms are not just selling AI deployments to clients—they are adopting AI themselves.
And yet, even if consulting survives the AI revolution, O’Leary said the profession’s pull is limited for careers. Consulting. he argued. is a path with a “ceiling.” A short stint can help young professionals map out where they fit. he said—especially for people trying to find their footing in the labor market.
“One of the things that you could argue is good about consulting is, if you spend less than two years there, and you’re going to search all 11 sectors of the economy to find out where you fit, that makes sense to me,” O’Leary said.
Beyond that, he warned, the experience can stall a person’s growth and even dull ambition. “In the long term. however. it can lead to stagnation — or worse. a career of ‘mediocrity.’” He was blunt about what he looks for when evaluating leadership ambition. “When I see a résumé where someone wants to be a CEO of one of my companies. and has been at a consulting firm for seven years. I just tear that up.”.
Not everyone would agree with that harsh line. O’Leary noted that Google CEO Sundar Pichai got his start at McKinsey. He also pointed to former Meta COO Sheryl Sandberg, who also began at McKinsey.
For readers watching how work gets priced, bought, and executed—from strategy down to operational decisions—the shift O’Leary describes is simple: when AI can run the analysis cheaper, faster, and in-house, the spending pattern can change quickly. He says it has already been changing for 24 months.
Kevin O’Leary Shark Tank AI data center Utah consultants AI adoption McKinsey BCG Accenture reinvention services consulting careers Sundar Pichai Sheryl Sandberg