IBM Consulting’s chief, Mohamad Ali, has issued a stark warning to the consulting industry, urging firms to evolve into software-driven organizations or risk being left behind. Speaking about the rapid transformation brought by artificial intelligence (AI), Ali emphasized that traditional consulting models are losing relevance as technology reshapes how clients expect value and efficiency.

AI Disruption Forces a Rethink in Consulting

Ali highlighted that the consulting landscape is undergoing one of its most significant shifts in decades. With AI automating complex tasks once handled manually, clients are demanding faster, data-backed solutions rather than time-intensive advisory work. According to Ali, consultancies that fail to adapt their business models toward software and automation will struggle to remain competitive in this new environment.

From Traditional Advice to Software-Driven Solutions

The IBM executive explained that the future of consulting lies in integrating technology directly into service delivery. Instead of relying solely on human expertise, firms must embed digital tools and intelligent systems into their operations. This shift, he noted, will enable consultancies to deliver outcomes more efficiently while maintaining quality and precision for clients navigating digital transformation.

IBM’s Strategy: Thousands of Digital Agents

To lead this evolution, IBM Consulting is developing thousands of digital “agents” designed to automate routine tasks across its operations. These agents—powered by AI—are intended to streamline workflows, reduce manual effort, and enhance productivity across projects. The company aims to convert a substantial portion of its business into software-based delivery, positioning itself at the forefront of technology-enabled consulting services.

Client Expectations Driving Change

Ali also pointed out that client skepticism toward traditional consulting models has grown as organizations seek measurable results from their investments. Businesses now expect partners who can provide not only strategic advice but also tangible technological solutions that improve performance and efficiency. This shift in expectations underscores why consultancies must evolve beyond advisory roles into active technology enablers.

The Competitive Edge of Early Adopters

Firms that embrace automation early stand to gain a significant advantage in an increasingly crowded market. By leveraging AI tools and software platforms, these companies can deliver faster insights, reduce costs, and enhance client satisfaction—all critical factors for long-term survival in the digital era. Ali’s message serves as both a warning and an opportunity for firms willing to innovate before disruption overtakes them.

As artificial intelligence continues redefining industries worldwide, the consulting sector faces a pivotal moment of transformation. Mohamad Ali’s remarks reflect a broader truth: adaptability is no longer optional but essential for survival. Companies that integrate AI and software-driven strategies will not only endure but thrive in a future where technology defines success across every professional service domain.