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The AI Wave in HR Consulting: Insights from Kognitiv's Research

A recent study conducted by Kognitiv, a specialist partner of Workday, has unveiled significant trends in the HR consulting sector, revealing the need for better integration of artificial intelligence (AI) in consultancy services. The research surveyed 500 HR leaders across the UK and Germany, and the findings are not only enlightening but also indicative of a crucial shift in the industry's dynamics.

Key Insights from the Study

According to the report, titled "The New Age of Consulting", an overwhelming 80% of HR leaders in the UK expressed that they expect consulting firms to better integrate AI technology into their services. This sentiment underscores a growing frustration within the HR community regarding the pace at which traditional consulting firms are adapting to modern technological advancements.

Interestingly, nearly half of the respondents—44%—feel that these firms are lagging behind in their adoption of AI technologies. This hesitation poses a challenge, particularly as AI continues to redefine traditional business operations and workflows in various sectors.

The Role of AI in HR Functions

The research delves deeper into the potential impact of AI, revealing that 46% of HR leaders believe that AI could replace a significant portion of the work currently done by consultants. Moreover, a substantial 70% of participants admitted that AI technologies have already assisted them in reducing consulting-related expenses. This trend indicates not only a shift in preference but also a tactical move towards optimizing HR budgets in favor of technology-driven solutions.

With this backdrop, it's clear that HR leaders are not just hopeful for AI integration; they are actively pivoting towards it. In response to the evolving landscape, more than half—59%—forecast a future consulting model that combines both human expertise and AI capabilities. This shift emphasizes the necessity for a hybrid approach wherein AI tools are guided and managed by human oversight, rather than a complete replacement of human consultants.

Discrepancies and Challenges

Despite the clear demand for AI integration, Kognitiv's study highlighted a dichotomy in expectations versus reality. A staggering 95% of HR leaders continue to collaborate with consultancy firms, yet only 26% consider these relationships to hold significant relevance for their operations. While more than half believe that consultancies could tackle specific issues effectively, a worrying 16% describe their experiences as disappointing.

The survey also identified major pain points for HR leaders working with consulting firms. The most cited difficulties include:

• - Lack of transparency in pricing (44%)
• - Limited service flexibility (42%)
• - Inefficiency in processes (41%)
• - Misalignment with business needs (40%)
• - Restrictive long-term contracts (29%)

These challenges contribute to what Kognitiv terms the 'tax of complexity'—a hidden cost organizations incur as consultancies entangle partnerships in antiquated processes and protracted approvals. This phenomenon drains time, budget, and innovative potential, confirming that the traditional consulting model is increasingly misaligned with the contemporary needs of HR leaders.

Looking Ahead

Mark Grignon, CEO of Kognitiv, stated, "Our sole focus is solving client issues, and that means leveraging our extensive expertise and datasets to craft AI models and solutions that expedite and enhance support. This isn’t science fiction; it requires human oversight steering the process. Firms that fail to recognize this not only limit AI's capabilities but also charge clients for slow and expensive practices."

With the evolving expectations set by HR leaders, the need for consulting firms to embrace and integrate AI is not merely recommended; it’s essential. The full report, "The New Age of Consulting Powered by AI, Driven by People", can be accessed here.

About Kognitiv

Kognitiv operates as a certified partner of Workday AMS Services, providing flexible consulting modeled on usage-based payment—a novel approach that aligns with Workday's innovative ethos. Since 2016, Kognitiv has enabled Workday clients to acquire necessary services as needed without tying themselves to fixed-cost agreements, comprehensively supporting product lifecycles from one-off requests to complete administrative services.

Methodology

The poll conducted involved 500 HR executives in Germany and the UK, carried out online by Sapio Research in October 2025 through email invitations and online surveys.

For further details, visit Kognitiv's official website.