Artificial intelligence is increasingly taking over work traditionally handled by consultants, according to “Shark Tank” investor Kevin O’Leary, who says the shift is already changing how companies operate and whom they hire.
AI Is Replacing Traditional Consulting Work, Says O’Leary
Last week, speaking on an episode of The Founder’s Mindset Podcast, O’Leary said companies he backs are increasingly turning to AI instead of hiring consultants for specialized business advice.
According to O’Leary, businesses that once paid consulting firms to analyze issues such as retail distribution strategies or organizational structures are now asking AI systems to perform similar evaluations at a fraction of the cost.
“Even the companies that I invest in that used to use a lot of consultants for very specific vertical situations … are first going to AI, which they can do for a lot cheaper,” he said.
O’Leary added that management teams are increasingly testing AI-generated recommendations internally, reducing the need to bring in outside advisors.
He noted that the trend has accelerated rapidly over the past two years.
O’Leary Questions Long-Term Consulting Careers
Beyond technology’s impact on consulting, O’Leary also questioned the value of spending too many years in the industry.
He said a short consulting stint can help young professionals gain exposure to different sectors and business models. However, he argued that lengthy consulting careers can become a liability for leadership candidates.
“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,” O’Leary said.
Not everyone would agree. Sundar Pichai began his career at McKinsey before joining Google, while former Meta Platforms, Inc.’s Chief Operating Officer Sheryl Sandberg also spent time in consulting before rising through the ranks of corporate America.
Consulting Firms Embrace AI Amid Industry Disruption
O’Leary’s comments come as major consulting firms race to adapt to the AI era rather than be displaced by it.
Many of the industry’s largest players have invested heavily in AI-focused services, partnerships and internal tools.
Consulting firms are increasingly helping corporate clients deploy AI technologies while also using those systems to streamline their own operations, Business Insider reported on Saturday.
The shift has become a major business driver. McKinsey has said roughly 40% of its work now involves AI-related projects, while Boston Consulting Group previously disclosed that about 20% of its work in 2024 was tied to AI initiatives.
AI Adoption Accelerates Across Businesses
AI adoption continues to accelerate.
As of December 2025, 17% of U.S. businesses reported using AI, rising to about 30% among firms with more than 250 employees.
Meanwhile, McKinsey found that 88% of mostly large companies use AI in at least one function, while generative AI adoption jumped from 33% in 2023 to 79% in 2025.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Kathy Hutchins / Shutterstock.com
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