Consulting Salaries Remain Stagnant Despite High Demand as AI Boosts Productivity

The 2025 Consulting Salaries Report from Management Consulted reveals that starting salaries in the consulting industry have remained stagnant for the second consecutive year despite increased demand for consulting services. Based on data from over 4 million readers, individual customers, and consulting firms, the report shows first-year consultants from undergraduate programs can expect base salaries up to approximately $112,000, while MBA hires can expect up to approximately $192,000.

The stagnation in compensation is largely attributed to artificial intelligence's impact on productivity, with enhanced efficiencies enabling firms to accomplish more work with fewer staff members. This technological advancement has created a dynamic where consulting firms can maintain output levels without increasing labor costs, contributing to the flat salary structure observed across the industry.

Despite the salary stagnation, market dynamics show strong demand for consulting services, particularly in supply chain, cloud computing, and healthcare verticals. The report positions consulting industry trends as a leading indicator for the broader economy, noting that hiring and productivity patterns first seen in consulting often predict what large global corporations will implement. According to Management Consulted, where consulting demand emerges typically signals where economic growth will occur.

The report also highlights significant shifts in recruitment strategies, with firms increasingly prioritizing pre-MBA hires over MBA hires as a margin preservation measure. This strategic shift reflects the industry's adaptation to economic pressures and changing market conditions. Even if global macroeconomic activity improves in 2025, the report suggests challenges will persist, with inflation and persistently high interest rates potentially limiting industry growth opportunities.

Management Consulted maintains its industry leadership through partnerships with major organizations including Meta, American Express, and eBay, providing customized training programs that enhance team capabilities and improve advisory effectiveness. The labor market shows no signs of returning to the intensely competitive conditions that previously drove salary increases upward, allowing firms to maintain current compensation levels.