A study of UK consulting industry clients has found that two-in-five organisations are looking to consulting firms for support with digital and technological transformations. Data from the Management Consultancies Association confirms this trend is sharpest in the public sector – where more than half of clients are prioritising technology investment.
Conducted by research firm Savanta, the Management Consultancies Association 2026 Client Survey polled more than 350 leaders from a wide-range of organisations who use the services of consulting firms. Sectors ranged from financial services and manufacturing to those working in central and local government.
Highlighting the most pressing challenges facing UK organisations across the private and public sectors, the MCA’s analysis shows that UK organisations are under intensifying pressure from rising costs, cyber security risks and low economic growth, while efforts to adopt artificial intelligence are being slowed by skills shortages and security concerns. In particular, after three years of unrestrained hype, businesses are coming under pressure to show returns on investment for artificial intelligence.
Source: Management Consultancies Association. Consultancy.uk analysis.
This has resulted in a growing caution among businesses around the adoption of AI. While client organisations still say they recognise AI’s potential, 40% now fear progress is being held back by data security and privacy concerns, while 34% cite a lack of skilled internal teams, and 28% note difficulties establishing clear governance and strategic roadmaps. Meanwhile, the cost of implementation is noted as a constraint by just under a third of respondents.
This is fuelling demand for consulting services, according to the MCA, as the highest-demand service line for the sector among clients remains digital and technology advisory – just ahead of strategy and risk management on 34% each. With the MCA predicting the sector will achieve 6% growth this year and 7% in 2027, helping clients to get more from their AI and digital transformations is becoming central to the health of the consulting industry. Small and mid-sized players specialising in the sector may also find a fruitful space to disrupt the sector, too, with SMEs expected to grow at an even faster 25%.
Tamzen Isacsson, chief executive of the Management Consultancies Association, commented, “In challenging economic conditions consulting is helping organisations move faster, manage risk and deliver real productivity gains. The MCA Client Survey 2026 shows the competitive edge now lies in being able to provide judgement, sector knowledge and trust that is earned through outcomes. As UK organisations navigate cost pressures, digital disruption, and increasing governance demands, the leading MCA consulting firms will respond with practical expertise and genuine partnership.”
Source: Management Consultancies Association. Consultancy.uk analysis
The public sector has historically been the second largest client-sector for consultants in the UK, behind the nation’s financial services market. And reflecting this – as the government looks to press ahead with key initiatives to digitalise public services, and wire AI into the heart of the state – public sector client priorities are heightened in comparison to their private sector counterparts.
When it comes to responding to technological change, those working in the public sector are taking proactive steps. A 56% majority are upskilling or retraining staff in digital skills, compared to 45% in the private sector. Around 51% of public sector clients are also investing more in new technologies than 45% of private clients. Importantly for the professional services sector, meanwhile, public sector entities are also more likely to turn to external consultants or advisors for digital transformation initiatives. This is something they have regularly done in recent years to plug the skills shortages which still linger in government departments – having been left short-staffed by a sustained period of austerity, ahead of a decade of rapid change.
With scrutiny still being heaped on the UK government’s consulting spend, however, 48% of public sector clients also noted efficiency concerns, compared to 31% of private peers. Looking ahead, demonstrating value for money will remain a key priority for consultants looking to make the most of demand in this space, then.
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