Building the AI-Era Consulting Firm

Every firm is being told AI changes everything. Few can tell you what it's actually worth to them. We benchmark over 700 consulting firms, and our data puts revenue per employee near $160K today. Over the next couple of years, we expect the leading firms to double it, by turning the tools and data they already run on into an intelligent ecosystem that drives action across the firm. Season 3 opens on the question that defines the rest of it: what does healthy growth and profitability actually look like in the AI era?

Building the AI-era consulting firm
Go deeper
Subscribe to the Projectworks Podcast
Watch Video

Season 3 of the Projectworks Podcast opened with a live poll:

How confident are you that AI is making your firm grow faster or more profitably?

Just 43% of consulting leaders on the call said "slightly confident."

Almost nobody said very.

That result is the reason this season of the Projectworks Podcast exists. Every firm has heard AI changes everything. Very few can point to the line on the P&L where it shows up.

The maturity model hasn't changed. The tools have.

The episode starts where every season starts, with the consulting maturity model AKA the Projectworks MethodTM.

The Projectworks Method consulting maturity model

AI doesn't retire this model. A firm still has to sell work, deliver it at margin, and keep admin from eating the week. What changes is how fast a firm can climb, and firms that were already strong in one column will likely compound that strength faster than they can patch a weak one.

AI is reshaping productivity

Productivity leap cycles are compressing. Each leap arrives faster than the last. The cycle is collapsing toward years, not decades.

AI is reshaping productivity
For consulting firms, we now see disruption arriving on a ~2-year cycle.
The gap between these leaps keeps getting smaller, and the world is moving faster. We all feel it. From ChatGPT popping up in '23 to everybody working on agentic AI now, it's come a really long way in a short time.
Mark Orttung · CEO, Projectworks

What factory electrification teaches consulting firms about AI

Electrification reshaped the factory the same way AI is reshaping the firm.

When electricity reached factories in the 1880s, it arrived in three stages:

  1. The lightbulb lit workstations and changed nothing about how work flowed.
  2. The group drive put one motor on a shared shaft, faster, but the same layout.
  3. Real productivity gains waited until 1913, when Ford's Highland Park plant put a motor on every machine and rebuilt the floor around the flow of work.

Stage 1

The lightbulb

Electric lighting, 1880s

Electric light made the floor safer and cleaner, but work still flowed through the same machines, shafts and belts. The operating logic did not change.

Stage 2

The group drive

Shared shafts, 1890s to 1910s

One motor drove a cluster of machines through a shared shaft. Cheaper and easier than rebuilding, so it won, but the old factory layout stayed put.

Stage 3

The unit drive

Ford's Highland Park, 1913

A motor on every machine freed the floor from the shafts. Ford rebuilt the plant around the flow of work, and productivity climbed for a decade.

Consulting firms in 2026 are mostly at stage two.

Teams share tools, chat with assistants, and move a bit quicker. But, for many firms, AI is still sitting at the lightbulb stage. It's bolted onto old workflows, drafting emails and summarizing notes at the edges. The firms about to pull ahead are the ones rebuilding the workflow itself.

The unit-drive moment for a firm means mapping its actual business processes, deciding which steps AI can run fully or partially, and putting people on the judgment work only they can do.

A lot of us are chatting with a chatbot, doing better search, getting more interesting answers. That's a little bit like turning on the lightbulb. A lot of people then move to small work groups, working together and collaborating. Our hypothesis is you're kind of like the people with all the crazy belts sitting around a desk, and you've gotten more productive. But there's a lot more to go: deeply understanding your business processes, figuring out which pieces can be fully or partially automated, and getting the humans working on the more challenging, more creative, more interesting steps.
Mark Orttung · CEO, Projectworks

(Source: Azeem Azhar and Nathan Warren, 'Why AI isn't showing up on your bottom line', Exponential View, 2026.)

Revenue per employee is the metric that matters

If AI is genuinely making your firm more productive, one number should move: Revenue per employee.

Revenue per employee is the cleanest read on whether your experts are producing more value, or just producing the same value slightly faster.

Revenue per employee

As revenue per employee climbs, the same people generate more revenue.

Consulting Growth StackTM

Growth

  • Cost per proposal
  • Client acquisition cost (CAC)
  • Lifetime value (LTV)
  • LTV:CAC ratio
  • Win rate
  • Book to Bill ratio
  • Pipeline growth
  • Revenue bridge
  • Company growth rate

Profitability

  • Time to invoice
  • Month-end timeframe
  • Admin as a % of revenue
  • Project margin
  • Recoverability / revenue leakage
  • Utilization
  • Gross margin
  • Operating profit
  • EBITDA

None of this works without knowing what to measure. The Consulting Growth Stack is the metric set underneath the maturity model, nine growth metrics and nine profitability metrics, from cost per proposal through to EBITDA, drawn from the Projectworks Method and 150+ years of building and scaling firms. Most firms already track a handful. Few know which one AI will move first.

That's the work of the season. Each episode takes a metric from the stack and pulls it apart. What good looks like, where AI shifts it, and what to ignore. First up, cost per proposal, and how AI wins new clients with less non-billable time.

Share:
Watch the pod live

RSVP to get notified and listen to our podcast, live!

You’ll be invited to our exclusive listening sessions of our live pod recordings

UP next:
2026-07-23T11:30:00

AI-Driven Business Development

Keep reading

Listen to moments from similar podcasts

Podcast

Mark Orttung (Projectworks CEO) and Dominique Rennell (Projectworks CCO) are joined by Christophe Delaire, the CEO of Marshall Day Acoustics, to discuss what good differentiation looks like at different stages. Marshall Day Acoustics is a one-of-a-kind acoustics consultancy with a global team of experts working everywhere from concert halls to wind farms.

By
Ria Parish
June 11, 2026
Podcast
Double your growth rate
Podcast

New Projectworks data from over 700 firms points to one operational habit separating the fastest growers from the rest. (Spoiler alert: It's resource optimization.)

By
Ria Parish
May 27, 2026
Podcast
What's my firm worth?
Podcast

What is your consulting firm actually worth? Allen Debes and Mark Orttung have bought and sold more than 10 consulting firms between them. In this episode, they break down how buyers arrive at a number, what moves your multiple, and why exit preparation starts earlier than most founders think.

By
Ria Parish
May 13, 2026
Podcast