Small Business Awards 2023 | 7 MCA 2025 report reveals agility and AI readiness key to business success Relationships more important than ever, we must not forget our human-centred approach. 2025 is a pivotal year for the consulting industry, with the sector showing resilience after stagnant growth in 2024. But whilst there is renewed optimism ahead, we cannot afford to take relationships for granted - as, unfortunately, many do. The MCA’s latest report identifies shifting client expectations; it has never been more important than now to combine expertise with empathy, agility and a readiness to rapidly adapt to technological change. Key growth sectors highlighted by the report reveal the areas in which businesses need the most help - and therefore, the areas which have had the biggest impact on business this year. By looking at these expectations, consultancies will find their path forward signposted by listening to what their clients really need, with milestones on the map of key growth sectors. For example, while the term ‘digital transformation’ is now a tautology, the emergence of AI has revived the need for clearer guidance on the impact of new digital tools. Digital and technology consulting now 39% of fee income, with AI, cybersecurity and cloud transformation leading demand. NHS and government AI/cyber projects within the public sector remain steady, despite public sector spending overall declining. In parallel, business transformation fees more than doubled, from 7 - 22%, reflecting client urgency to restart strategic change, efficiency and M&A activity. Sustainability and net zero are also key areas of growth, with consulting on emissions reduction and sustainable transformations increasingly embedded into wider programmes. Global demand is also on the rise, with fee income rising outside Europe (by 5%). Socio-economic policies are therefore shaping how businesses invest in future solutions. Clients now demand more than technical solutions. They expect trusted partners who understand their challenges, work alongside them, and adapt quickly. Which is why, perhaps, mid-sized consultancies are thriving (+4% growth, increased market share from 13% to 21%); their ability to be flexible, responsive, and peoplecentred means they can adapt to these changing needs and give their clients what they really need at each step along the way. Empathy in consulting means listening, co-creating, and ensuring strategies are grounded in client realities rather than one-size-fitsall models. The report reveals talent pipelines within consulting are shifting, with graduate and apprentice hiring down, whilst experienced hires are on the rise, which could risk long-term talent sustainability. With the UK’s Big Four accountancy firms significantly increasing adoption of generative AI to automate the entry-level administrative tasks, graduate job intake is seeing the chop with cuts as high as 29% in some firms. This is another example of AI being integrated inefficiently and in a way which makes scaling challenging. And as a business consultancy leading transformation, this is perhaps another reason why the midsize consultancies are seeing such growth in comparison. There is an inherent agility, but more so an understanding of how to assess ‘AI readiness’. AI readiness isn’t just about systems; it’s about preparing people and organisations for change. Relying on AI to plug a skills gap for the next generation is short-sighted; it is still a tool that only has real impact when employed by a human with experience of the problems you’re trying to solve. The adoption of generative and agentic AI has shifted from experimentation to implementation across sectors such as defence, healthcare, and finance. The real challenge isn’t AI availability, but AI readiness: do organisations have the right data, governance, skills, and culture to deploy AI responsibly? The MCA report identifies shifting client expectations, and these expectations are increasingly leaning on AI’s capabilities. The role of the consultant is to help them navigate what’s driving these expectations and how they may harness AI effectively within their business. As AI isn’t just an add-on, there is a need to fully assess the company’s tech stack and identify ways in which AI could help serve its customers’ needs. When we look at each of the fastest-growing industry sectors in the UK, it’s clear that AI is rapidly changing the landscape. But, whilst AI offers exciting prospects, consulting must remain human at its core. Empathy, diversity, and collaboration are the levers for long-term success. The firms that combine technological expertise with agility and human understanding will be best placed to thrive. Clients should view consultancies not just as delivery partners, but as empathetic, agile allies in navigating complexity. By Pete Smyth, CEO, Leading Resolutions
RkJQdWJsaXNoZXIy MTUyMDQwMA==