As Consulting Firms Turn to AI, Employees Develop Shadow Apps to Remain Relevant

Published: 31 May 2025
The surge of AI adoption by consulting firms triggers job cuts, provoking employees to develop 'shadow AI' applications to maintain their relevance.

Advancements in generative AI have begun to revolutionise the consulting industry. A wave of automation has hit, leading to significant workforce upheavals and layoffs. Major players like PwC, EY, Accenture, and McKinsey have already been pulled into this tide. They’ve eliminated thousands of jobs and faced slowing growth and increasing tech costs as AI transitions from experimental to a core business necessity.

Amidst this transformation, the IBM CEO’s open declaration regarding AI replacing hundreds of human resources roles has caused further unease. This unsettling scenario amplifies the urgency confronting employees conducting rote process tasks. As AI agents are increasingly seen as existential threats, a survival mindset is palpable among workers. This fear has led many to defensively develop shadow AI applications as a strategy to maintain their relevance.

This new wave of AI-driven paradigm shift is redefining the contours of knowledge work faster than anticipated. Through the creation of these resident AI applications, employees are creatively responding to the threats imposed by the advancing wave of AI. As they grapple with the tumultuous shifts brought on by automation, it’s evident that those who embrace transformative tech are set to shape the future of consulting.