Show Notes:

The conversation opens with an overview of the consulting market, mentioning the impact of interest rates, private equity, and AI on the industry. Chad shares his background, including his career at Deloitte Consulting, Bain, and Charles Aris, and the focus of his strategy recruiting practice. Chad explains the shift in Charles Aris's business from Fortune 500 strategy placements to private equity and portfolio companies. He details the types of roles his team places, including general strategy, chief of staff, transformation, and integration roles.

Four Phases in the Consulting Industry

Chad highlights the growth of private equity and its impact on the consulting market, including the increase in demand for consulting services. Chad outlines the four phases the consulting market has gone through over the past 24 months: downturn, rebound, downturn, and growth. Chad explains the impact of higher interest rates and tariffs on the consulting market, leading to reduced investments and consulting services.

AI Growth Phase

Chad discusses the rebound in 2025 due to lower interest rates and private equity adapting to the new normal. He highlights the current growth phase driven by AI and the understaffing of consulting firms due to previous downsizing. Chad emphasizes the candidate-driven market and the increased demand for consulting services, particularly in AI and go-to-market initiatives.

Private Equity

Chad identifies private equity and services firms (white and blue collar) as the two primary industries with high demand for consulting services. Chad explains the growth of private equity and its focus on due diligence and value creation initiatives. Chad discusses the impact of AI on due diligence, including commercial, operational, and technology due diligence. He highlights the demand for consulting services in white and blue collar services firms, driven by private equity investments.

Areas of High Demand

Chad transitions to discussing functional areas with high demand, starting with AI. Chad identifies AI as the number one functional area with high demand, focusing on increasing productivity and refocusing employees on high-value interactions. Chad explains the two types of AI consultants: AI strategists and AI implementers, and their roles in AI enablement. Chad discusses the importance of AI in various consulting projects and the need for consultants to embrace AI. Chad highlights the demand for go-to-market consulting initiatives, including CRM redesign, sales process redesign, and AI-powered territory optimization. Chad emphasizes the importance of understanding AI from a go-to-market perspective and the increasing demand for AI expertise.

The Role of Transformation Consultants in PE

Chad shares two AI use cases: an AI tool for a large international bank to automate research tasks and an AI sales planning platform for a pharmaceutical organization. Chad explains how AI automates repetitive tasks, allowing humans to focus on high-value interactions. Chad discusses the role of transformation consultants in private equity, emphasizing the need for a track record of getting things done, strong EQ, and analytical skills. Chad highlights the importance of influencing without direct authority and the analytical competencies required for transformation roles.

Maximizing Opportunities

Chad provides tips for client development with private equity firms, recommending reaching out to portfolio operations teams and deal partners. Chad identifies supply chain optimization and manufacturing footprint optimization as areas with declining demand due to the shift towards growth initiatives. Chad emphasizes that while some areas may have softened, there is still demand in most specialties. Chad discusses the relatively easy process of filling board roles and the limited demand for board searches. Chad advises independent consultants on positioning themselves to transition back to global firms, recommending reaching out to former colleagues and partners. Chad concludes by encouraging consultants to embrace AI and stay updated with market trends to maximize their opportunities.

Timestamps:

03:48: Chad Oakley's Introduction

23:14: Market Overview

31:08: Consulting Market Phases and Current Trends

39:47: Industries and Functions with High Demand

47:19: AI and Go-to-Market Consulting Demand

55:24: AI Use Cases and Transformation Roles

1:03:43: Declining Demand Areas and Board Roles

This episode on Umbrex: https://umbrex.com/unleashed/651-current-state-of-the-consulting-market-in-2026/

Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at www.umbrex.com.

*AI generated timestamps and show notes.

651. Chad Oakley, Current State of the Consulting Market in 2026

Unleashed - How to Thrive as an Independent Professional

651. Chad Oakley, Current State of the Consulting Market in 2026