Amanze ChinonyeTop consulting firms that once promised to lead the corporate rush into artificial intelligence are now facing growing backlash from their clients. McKinsey, PwC and Deloitte, among others, are under pressure after billion-dollar AI projects delivered underwhelming results, prompting some enterprises to cut ties, demand fee reductions, or turn to in-house teams instead.
Global spending on AI consulting soared from $1.34 billion in 2023 to $3.75 billion in 2024, fueled by firms marketing themselves as indispensable partners for generative AI adoption. But many executives say the rollouts have produced little beyond glossy reports, while their own technology teams often prove more capable of developing practical applications.
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Executives at companies spanning healthcare, pharmaceuticals and finance told the Wall Street Journal that consultants lacked the technical depth to move proof-of-concept projects into scalable business solutions. One pharma executive likened hiring a big firm to “paying someone to learn on your dime.”
Frustration has translated into financial pressure. PwC has faced requests for “AI discounts,” as clients argue that if consultants are leaning on automation to deliver faster, savings should be passed on. Some enterprises ended contracts early, while others redirected investments toward in-house innovation teams already fluent in digital systems.
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Deloitte Under Fire
Deloitte came under particular scrutiny in Australia after a government review discovered that a report it submitted contained fabricated references. At least half a dozen academic citations and a court ruling quoted in the report were found to be nonexistent.
While Deloitte admitted to “referencing errors” and pledged to correct them, critics said the incident deepened suspicions that AI tools were used to generate content without proper fact-checking a damaging misstep for a firm that advertises expertise in digital trust and governance.
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McKinsey Warns of Scaling Pitfalls
McKinsey, meanwhile, has publicly cautioned that many generative AI projects are struggling to deliver measurable impact. The firm identified two main reasons for failure: poor data governance and difficulty in scaling pilot programs into enterprise-wide solutions. Its State of AI survey found that although corporate experimentation with generative AI is widespread, only a minority of projects are producing tangible business benefits.
Between Hype and Hard Reality
Analysts say consulting firms may have overreached by rushing to the bleeding edge of technology before reliable enterprise use cases were established. While Accenture has reported $100 million in new AI bookings in a single quarter and KPMG sees $1.4 billion in potential U.S. projects, clients remain wary of inflated promises.
For the big consulting houses, the real profits may come in a “second wave” of AI adoption when tested applications require large-scale deployment and integration. Until then, they face mounting scrutiny over their current value.
The stakes extend beyond consulting reputations. Enterprises are investing billions in AI initiatives meant to reshape productivity, supply chains and competitiveness. If disappointments persist, trust in both AI and the advisers promoting it could erode, accelerating a shift toward in-house innovation.
For McKinsey, PwC and Deloitte, the backlash is not just about missed projects, it is a warning that their dominance in digital transformation is no longer guaranteed.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
