Shares of Accenture have plummeted to their lowest level in nearly a decade, reflecting broader challenges facing the consulting industry amid rapid technological change and the rising influence of artificial intelligence. Over the past week, Accenture’s stock dropped 24 percent, with its value halved since the start of 2026, following a report of weakening business performance. The company, one of the few publicly traded firms in the sector, revealed a 3 percent decline in new bookings during the first quarter ending in May and lowered its full-year revenue growth forecast to below 4 percent.

This downturn is not isolated. Other leading consulting firms are also adjusting their workforce sizes in response to shifting market conditions. KPMG announced plans to reduce its U.S. headcount by approximately 4 percent and eliminate 600 jobs in the UK. McKinsey reportedly is considering a 10 percent staff reduction, while PwC trimmed 2,000 positions in the UK last year and significantly cut its graduate recruitment this year. Industry insiders indicate that additional workforce reductions may be occurring through attrition and hiring freezes.

The consulting sector plays a crucial role in the UK economy, generating estimated annual revenues between £14 billion and £20 billion and contributing close to £6 billion in exports. Globally, the industry is valued at more than $500 billion and serves as a key entry point for tens of thousands of graduates each year. A sustained contraction could have widespread economic implications.

Artificial intelligence is widely seen as a significant factor driving these changes. Tools such as ChatGPT and ClaudeAI are increasingly used to perform research and analysis tasks traditionally handled by human consultants, often at lower cost and faster turnaround. While AI adoption might be expected to boost consulting demand due to extensive digital transformation projects and the need for strategic guidance, the reality appears more complex.

Industry observers suggest that the rise of AI has highlighted the lack of substantive value in much of the routine consulting work. While firms often present themselves as leaders in innovation and change management, some of their offerings have been criticised as formulaic, high-priced services that can be partially replicated by AI tools. These technologies can efficiently produce business reports, mission statements, and HR strategies that match the quality of costly consultancy deliverables, undermining the traditional consulting business model.

Despite these challenges, there remains demand for high-level, innovative consulting that delivers original strategic insights and transformative solutions, the kind initially pioneered by firms like McKinsey, Bain, and the Boston Consulting Group. However, the growing AI capability to automate standardised consultancy tasks is forcing a reassessment of the industry’s value proposition.

The steep decline in Accenture’s share price is seen by some analysts as an early indicator of a broader structural shift. Without rapid adaptation and reinvention, major consulting firms risk significant upheaval as AI reshapes their market landscape.