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Home Technology & Startups

Why AI is primed to be a huge benefit — and a major liability — for consulting’s Big Four

June 1, 2025
in Technology & Startups
Reading Time: 7 mins read
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KPMG offices.
KPMG is one of several consulting firms helping businesses make sense of tariffs.Liam McBurney/PA Images via Getty Images

Welcome back to our Sunday edition, where we round up some of our top stories and take you inside our newsroom. Elon Musk’s foray into politics was the final straw for Mahican Gielen. She traded in her beloved Model 3 for a BYD Sealion 7 Excellence. She said she’s overall happy with her new purchase, but there are a few Tesla features she misses.


On the agenda today:

But first: AI meets the consulting giants.


If this was forwarded to you, sign up here. Download Business Insider’s app here.


Company headquarters of EY, Deloitte, KPMG, PWC
Getty Images

If you’ve read BI lately, you know AI is proving to be an asset and a risk for the consulting industry. Several months ago, we asked Polly Thompson in London to take on coverage of the the Big Four: Deloitte, PwC, EY, and KPMG. She immediately zoned in on this tech and how it is poised to help — and disrupt — these massive firms. I chatted with Polly to find out more.

Polly, how do you size up AI adoption inside the Big Four? Is it more hype and hope, or embrace and happening?

Big Four firms are resting their futures on AI and have poured billions into developing in-house solutions. Employees don’t have much choice but to embrace it — the messaging is to learn AI or get left behind — and their Fortune 500 clients will be following their lead. We’ll see how quickly their efforts generate returns.

Tell us more about how AI is both an opportunity and, in some ways, an existential threat.

Consultants specialize in guiding companies through transformations, which means AI presents plenty of opportunities for the Big Four. They face a balancing act between meeting that demand and handling the massive upheaval that AI will bring to their operating models, leadership structures, and job roles.

What have you been learning about smaller consulting firms challenging the bigger rivals?

Midsize firms are in a sweet spot right now. Consultants increasingly are expected to become specialized and offer deep sector expertise — a demand many of these firms already fill. AI is also poised to help boost their productivity and widen their reach without the need to invest in a vast workforce. They see this as their opportune moment. That said, the midsize firms I’ve spoken to aren’t aiming to be the next Big Four.

What are the other top-of-mind topics in your coverage?

I want to dig into how these industry shake-ups affect employees at every level of the chain. How should firms train junior employees as AI takes on more? Why are some execs shunning high-paid partnerships? Is there a tech talent war coming at the Big Four? If anyone wants to reach out to me about those questions, email pthompson@businessinsider.com!


A lone CEO standing next to outlines of potential candidates
Getty images; Tyler Le/BI

The number of CEO changes for S&P 500 companies is on pace to reach 14.8% this year. With turnover up, BI spoke to corporate observers about how the search for new leaders is getting messy.

Poor succession planning, job-hopping, and cuts to middle management are damaging the pipeline. Despite the headache, companies aren’t settling, either.

“The musical chairs is broken.”


2 houses with price tags on them. The one on the left has multiple hidden price tags in comparison to the one on the right having one large price tag
Getty images; Tyler Le/BI

On May 12, a bipartisan-supported FTC rule cracking down on unfair and deceptive fees went into effect. You can now behold the glory of all-in pricing when you peruse Airbnb, Ticketmaster, Booking.com, or StubHub.

Some companies are trumpeting the news, even though showing costs up front wasn’t their idea. BI’s Emily Stewart took the new rule for a spin.

She said it’s pretty awesome.


Apple Store
The Consumer Technology Association is projecting record consumer tech spending in 2025 without Trump’s tariffs.Kevin Carter/Getty Images

The iPhone maker is the worst-performing Magnificent 7 stock in 2025, with shares down 20% year-to-date. One reason for the decline is the trade war, since most iPhones are assembled in China.

President Donald Trump even singled out the tech giant over the issue. Regardless, many Wall Street analysts and investors remain optimistic about Apple’s future.

To buy — or not to buy — the dip.


People walking past Target store
Mostafa Bassim/Anadolu via Getty Images

Target used to have a dedicated following of customers that treated shopping there as more of a pastime than an errand. In 2025, that’s all changed.

The retailer’s sales, foot traffic, and popularity have plummeted thanks to a DEI messaging fumble, declining in-store experience, and greater industry-wide headwinds.

Why former fans are disillusioned.


This week’s quote:

“Employee surveys mostly seem like a way for the executive suite to pat themselves on the back.”

— Nick Gaudio, creative director at chatbot startup Manychat, on the rise of employee satisfaction surveys.


More of this week’s top reads:

  1. Getting divorced is even harder for millennials than it was for boomers.

  2. The TACO trade is the new Trump trade. Here’s what to know about the meme ruling the stock market.

  3. Middle managers, beware: The Great Flattening layoff trend has moved beyond Big Tech and into retailers like Walmart.

  4. General Catalyst’s Hemant Taneja is trying to redefine venture capital — and baffling the industry.

  5. What did tech CEOs get for pivoting toward Trump?

  6. Amazon’s sprawling warehouse robot factories offer a glimpse into modern US manufacturing.

  7. Anthropic CEO says AI could wipe out half of all entry-level white-collar jobs.

  8. Meta is working on plans to open retail stores, internal communication shows.


    The BI Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Elizabeth Casolo, fellow, in Chicago.

Read the original article on Business Insider

Tags: BIBusiness InsiderConsulting firmsconsulting industryElon MuskGetty ImagesPolly ThompsonTrump
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