There are positive signals coming out of the management consulting industry, with several major players expressing optimism about the market and business prospects for the year ahead.
In 2025, advisory services that are focused on resilience amidst geopolitical unrest and artificial intelligence are expected to dominate. Meanwhile, external acquisition opportunities are looming in the background.
Henrik Ringgaard Pedersen, Head of Nordic at PA Consulting, was among the consulting leaders interviewed by Inside Business to discuss the trends and drivers shaping the consulting industry in 2025. These are his key insights:
Henrik Ringgaard Pedersen sees significant opportunities in resilience advisory, particularly within the financial sector. He emphasises the growing importance of cyber and IT security and helping clients navigate change effectively. However, he acknowledges there is a shift in client attitudes and that consulting firms must adapt in order to remain competitive.
“I believe that, over the past year, many of us in the industry have realised that our clients have become highly skilled and have developed strong in-house capabilities. This marks the end of the traditional consulting approach, where generalist consultants could define problems and solutions from scratch. Today, delivering value to clients requires far more specialised expertise, industry knowledge, and deep insights,” he explains.
He adds: “Over the coming years, the industry must excel at two things: first, evolving alongside their clients, as their competencies and needs develop; and second, becoming even sharper at delivering measurable results. The latter will be critical to maintaining market position, as the value of management consulting often extends beyond what is immediately visible.”
Artificial intelligence as a gamechanger
Another topic expected to dominate in 2025 is artificial intelligence (AI), which many describe as a gamechanger for businesses. However, for businesses to fully reap the benefits, they must embrace AI strategically. While optimistic about the industry’s role in advancing AI adoption, Henrik Ringgaard Pedersen notes that clients sometimes have unrealistic expectations of the technology or look for AI solutions for problems that require other approaches.
“For PA Consulting – and the consulting industry as a whole – the focus in 2025 will be on advising clients on how to use AI wisely. We’ve moved from hype to reality, and now it’s about carefully considering how and to what extent AI should be used. This trend will only grow in the coming years,” he says.
Private equity interest in consulting firms
An additional trend gaining traction in 2025 is the increased internationalisation of the industry and the rising interest from private equity funds in acquiring consulting firms.
“Securing capital from private equity funds or even being acquired is undoubtedly a growth opportunity. Some firms are also exploring different structures to drive growth while staying relevant in the market. I believe we’ll see potential investments and acquisitions in the near future,” says Henrik Ringgaard Pedersen from PA Consulting, which transitioned from Carlyle Group ownership to that of industry player, Jacobs, in 2021.
Source: PA Consulting