AI-driven consulting startups now outpace Big Four, Business Insider reports
The consulting world has been humming with AI buzz for years, yet the promise of smoother projects and lower fees has hit an unexpected snag. While the majors poured resources into their own labs—think Deloitte’s AI Institute and PwC’s billion‑dollar AI push—leaner outfits have been slipping past the usual gatekeepers. These startups, built around generative models and data‑driven tools, are landing contracts that once belonged to the Big Four.
Their speed and price points make them hard to ignore, especially for midsize clients looking for quick, tech‑first solutions. The shift isn’t just a footnote; it reshapes how firms compete for talent, data, and market share. In this context, the following observation from Business Insider becomes especially relevant.
Business Insider recently highlighted how smaller firms, which are basically consulting startups using AI, have become the biggest competition to the Big Four consulting firms. Every large firm has pushed aggressively on AI. Deloitte built the Deloitte AI Institute, PwC announced a billion-dollar commitment, EY launched EY.ai, and KPMG tied up with Microsoft and AWS for large AI programs.
After spending more than $3 billion on AI, the firm described the returns as underwhelming. The company is now also rebranding its 8,00,000 workforce as 'reinventors' to adapt with AI and has announced a partnership with OpenAI to integrate ChatGPT Enterprise to all its employees.
The Business Insider piece makes clear that AI‑driven consulting startups are now the most immediate threat to the Big Four. Deloitte’s AI Institute, PwC’s billion‑dollar AI push and similar moves from EY, KPMG and Accenture show the incumbents are not standing still. Yet the same report notes that the industry’s AI rollout has exposed “cracks” rather than delivering a seamless upgrade.
It isn’t a collapse, but a pressure test of long‑standing business models. Smaller firms, built around AI‑first services, have begun to win work that once flowed automatically to the majors. Whether this shift will translate into lasting market share remains uncertain; the startups’ scalability and client retention are still being measured.
Meanwhile, the Big Four continue to invest heavily, suggesting they see AI as essential rather than optional. The picture is mixed: genuine innovation on one side, and unanswered questions about durability and impact on the other.
Further Reading
- McKinsey, BCG, and Deloitte's New Competition Is Fast and Driven by AI - Business Insider
- AI Is Changing the Structure of Consulting Firms - Harvard Business Review
- The Big 4's AI Gambit: Embracing Disruption or Racing Against It? - FinRep AI
- Big 4 struggle with AI adoption, while midsized & boutique firms win - The Finance Story
More in Business & Startups
Virtusa Acquires SmartSoC, Adds Semiconductor Chip Design to Cloud Services
Virtusa’s latest move pulls the curtain back on a strategy that’s been hinted at for months.
Amazon to invest USD 35 B in India by 2030, add 1 M jobs, digitise 1.2 cr small firms
Amazon announced a $35 billion infusion into India that will stretch to 2030, with a pledge to...
Leading AI firms unite under Agentic AI Foundation to set agent standards
The AI world is coalescing around a new collaborative body. Earlier this month, several of the...
OpenAI appoints former Slack CEO as CRO, bringing 14 years at Salesforce
OpenAI’s latest hire signals a clear push toward the business side of artificial intelligence.
Brand‑Context AI Makes Marketing AI a Strategic Partner, Not Isolated Output
Marketing teams have spent years feeding AI models with endless data feeds, only to get back...
Common Questions Answered
How are AI‑driven consulting startups outpacing the Big Four according to Business Insider?
Business Insider reports that AI‑focused consulting startups are winning contracts that traditionally went to the Big Four by offering faster delivery and lower fees. Their lean structures and generative‑model tools let them compete on speed and price, making them a growing threat to established firms.
What AI initiatives have the Big Four launched, and how much have they collectively spent?
The Big Four have each rolled out major AI programs: Deloitte created the Deloitte AI Institute, PwC committed a billion dollars to AI, EY launched EY.ai, and KPMG partnered with Microsoft and AWS for large AI projects. Together, they have spent more than $3 billion on AI, though the returns have been described as underwhelming.
Why does the Business Insider article describe the AI rollout as exposing ‘cracks’ in the consulting industry?
The article notes that despite heavy investment, the AI rollout has not delivered seamless upgrades and has highlighted weaknesses in traditional consulting models. These “cracks” refer to inefficiencies and slower adaptation compared to the agile, AI‑driven startups that are now capturing market share.
What specific partnerships has KPMG formed to advance its AI capabilities?
KPMG has tied up with both Microsoft and Amazon Web Services (AWS) to develop large‑scale AI programs. These collaborations aim to leverage cloud infrastructure and AI tools, positioning KPMG to compete more effectively against both incumbents and emerging AI consulting firms.