The future of HR consulting is at a crossroads, and it’s being reshaped by a force that’s both powerful and polarizing: Artificial Intelligence (AI). New research from Kognitiv, a Workday Partner consultancy, reveals a startling truth—80% of HR leaders in the UK are demanding that consultancies better integrate AI into their services. But here’s where it gets controversial: nearly half of these leaders (44%) believe consultancies have been dragging their feet when it comes to adopting AI, leaving a widening gap between expectations and reality.
This eye-opening study, conducted among 500 HR decision-makers in the UK and Germany, is part of Kognitiv’s groundbreaking report, The New Age of Consulting. It uncovers a growing frustration with traditional consultancy models, where HR leaders feel their needs are being overlooked. For instance, 46% of UK HR leaders believe AI could replace most of the work done by consultants, and 70% admit they’ve already reduced spending on consultancies in favor of AI solutions. And this is the part most people miss: it’s not just about cost-cutting—it’s about efficiency, transparency, and staying relevant in a rapidly evolving industry.
When asked about the future, HR leaders are clear: they want more AI, more transparency, and fewer traditional consultants. Over half (59%) envision a hybrid model where AI and human expertise work hand in hand. Mark Grignon, CEO of Kognitiv, puts it bluntly: ‘This isn’t science fiction; it requires a human in charge, directing the work and maintaining oversight. Firms that aren’t figuring this out aren’t just limiting what AI can do for you—they’re sticking you with the bill for their own slow, expensive processes.’
But here’s the kicker: while 95% of UK HR decision-makers still work with consultancies, only 26% consider them essential. The rest? They’re either underwhelmed or outright disappointed. The biggest pain points? Lack of cost transparency (44%), limited flexibility (42%), inefficiency (41%), failure to understand business needs (40%), and long, restrictive contracts (29%). These issues create what Kognitiv calls the ‘Complexity Tax’—a hidden cost organizations pay when partnerships are bogged down by bureaucracy, outdated systems, and slow approvals. It’s a tax on time, budgets, and creativity, pushing HR leaders to seek AI-driven alternatives.
Now, here’s a thought-provoking question: Is the traditional consultancy model becoming obsolete, or can it evolve to meet the demands of AI-driven HR leaders? Kognitiv’s research suggests that the future lies in a blend of AI and human oversight, but not everyone agrees. Some argue that AI could eventually replace consultants entirely, while others believe human expertise will always be irreplaceable. What do you think? Is AI the savior or the disruptor of HR consulting? Share your thoughts in the comments—let’s spark a debate!
For those eager to dive deeper, Kognitiv’s full report, The New Age of Consulting: Powered by AI, Driven by People, is available for download. And if you’re wondering about the methodology, the survey was conducted online by Sapio Research in October 2025, involving 500 HR decision-makers in the UK and Germany.
About Kognitiv: Since 2016, Kognitiv has been a certified Workday AMS Services Partner, offering flexible, pay-as-you-use consulting that aligns with Workday’s innovation and agility. Their Post Production Support (PPS) model empowers Workday customers with on-demand support, breaking free from fixed-spend agreements. From ad-hoc ticket resolution to custom app development, Kognitiv covers every phase of the Workday product lifecycle, backed by world-class consulting teams.