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The Growing Role of AI in HR Consulting

A recent study by Kognitiv, a consulting firm dedicated to Workday services, highlights a significant shift in the human resources sector. Conducted among 500 decision-makers in HR from the UK and Germany, the research reveals that 80% of HR managers are eager for consulting firms to better incorporate artificial intelligence into their operations. Moreover, nearly half of the respondents, precisely 44%, feel that these firms are slow to adopt or adapt to AI technologies.

This report, titled "The New Age of Consulting", sheds light on the frustrations surrounding traditional consulting partnerships. HR managers express a disconnect between their expectations and the actual services delivered by consulting firms. Notably, 46% of UK HR managers believe that AI could replace a majority of the tasks currently handled by consultants, while 70% acknowledge that AI has already succeeded in reducing consulting expenses.

As the survey participants reflected on the future of the industry, there were clear calls for increased AI usage, transparency, and reduced reliance on traditional consultants. Over half of the respondents, 59%, anticipate that a successful consulting model will merge AI capabilities with human expertise, indicating a preference for AI to enhance, rather than replace, human oversight in the consulting process.

Mark Grignon, CEO of Kognitiv, emphasized the necessity of tackling client challenges by leveraging extensive knowledge and data to craft smarter AI models and solutions. He noted, "Our sole objective is to resolve client issues. This requires intelligent oversight of AI-driven processes, ensuring they remain efficient without obsolescence. Companies failing to recognize this limit the potential benefits of AI while incurring steep costs for outdated consultant fees."

The research further identifies a notable gap between the services expected from traditional consulting firms and what they provide. A staggering 95% of HR decision-makers in the UK still engage with consulting firms; however, only 26% view them as essential to their work. Although 58% recognize that consulting services can address specific challenges, 16% report their experiences as disappointing.

When discussing the main pain points in consultancy services, respondents highlighted:

• - Lack of cost transparency (44%)
• - Restricted service flexibility (42%)
• - Inefficiency (41%)
• - Misunderstood business needs (40%)
• - Long-term restrictive contracts (29%)

These frustrations have led Kognitiv to propose the term "complexity tax," referring to hidden costs that organizations face when partnerships devolve into slow approvals and bureaucratic hurdles. This complexity comes at the expense of time, budgets, and creativity, signifying that the traditional consulting model no longer satisfies the evolving needs of HR managers, pushing them to opt for AI as a more viable alternative.

For those interested, the entire research report by Kognitiv is titled "The New Age of AI-Powered Consulting: Driven by People" and is accessible for download.

About Kognitiv

Kognitiv is a certified Workday AMS partner offering consumption-based consulting, consistent with Workday’s innovation and agility. Since 2016, Kognitiv’s Post Production Support model aids Workday customers in obtaining necessary support when needed, without fixed contract obligations. They encompass all aspects of the Workday product lifecycle, from handling ad-hoc requests to full project management, backed by world-class consulting teams equipped with the necessary expertise.

Research Methodology

The research was carried out online by Sapio Research in October 2025, targeting decision-makers in HR across Germany and the UK through email invitations and online surveys.