Major Consultancies Freeze Entry-Level Pay Amid AI Efficiency Gains

Leading global consulting firms have paused increases for starting salaries. This move coincides with industry debate about artificial intelligence (AI) reducing the need for large teams of junior analysts. These firms traditionally operate a "pyramid" model. They hire many junior staff to handle routine research and data work, which supports fewer, senior partners. Now, AI tools can perform many of these foundational tasks, challenging that decades-old structure. The salary freeze suggests firms are re-evaluating their reliance on entry-level labor. As AI boosts productivity, the demand for traditional junior advisory roles may decline, potentially reshaping career paths in the sector. Industry executives are actively discussing how to adapt their business models. The focus is shifting toward staff with skills to manage and apply advanced technologies, even as the long-term impact on hiring remains unclear.