The Consulting Middle Is Disappearing

AI is set to double client consulting spend from 0.8% to 1.7% of revenues this year. That sounds like good news. It isn't, uniformly.

The money is flowing to two places: scaled ecosystem integrators who can run nine-figure transformation programs, and deep specialists who own a narrow lane and win on genuine expertise. Cybersecurity. Pricing analytics. Vertical AI in healthcare or financial services. What's shrinking is the generalist mid-market firm that tries to do everything at medium scale.

I've watched this split accelerate over the past two years. Large firms are deepening hyperscaler partnerships and competing on global transformation budgets. Boutiques are winning on narrow expertise with the kind of speed that bigger shops can't replicate. The middle (firms too big to be nimble and not big enough to compete on scale) is getting squeezed by clients who now demand measurable operational outcomes and route to whoever can show the tightest expertise-to-outcome connection.

Improving's answer to this is our position as a global boutique. We have the scale to move with large firms, and we can maintain the boutiques' connectedness. It's not easy, for sure, but the practices we've put in place allow us to continue. Couple this with our deep AI delivery expertise in a specific market, and we are moving the needle. With our relationship density that global firms can't replicate, and the delivery depth that boutiques can't scale, we've found ourselves in an interesting position. That positioning only works if we keep sharpening what we're actually best at. 'AI consulting' is not a differentiator. 'AI delivery in the mid-market with a track record' starts to be one.

The bifurcation doesn't ask for your opinion. It just routes the money.