New research from Kognitiv, a dedicated Workday services partner, reveals a significant disconnect between HR leaders and traditional consultancies, with a strong demand for greater AI integration. The study found that 80% of UK HR leaders want consultancies to better incorporate AI, and 44% believe the industry has been slow to adapt to the technology, leading to frustration and a shift in spending.
Quick Intel
80% of UK HR leaders want consultancies to better integrate AI into their services.
44% believe consultancies have been slow to adopt or adapt to AI technology.
70% of HR leaders confess that AI has already helped them cut spending on consultancies.
Top consultancy pain points include lack of cost transparency (44%) and inefficiency (41%).
59% believe the future model is a combination of AI and human expertise.
This frustration creates a "Complexity Tax" of hidden costs on time and budgets.
A Growing Shift Towards AI Solutions
The research highlights a clear trend of HR leaders turning to AI as an alternative to traditional consultancy models. A significant 70% of UK respondents admitted that AI has already helped reduce their spend on consultancies, and nearly half (46%) believe AI can replace most of the work consultants currently do. This indicates a move towards more efficient, technology-driven support solutions.
The "Complexity Tax" of Traditional Partnerships
Despite 95% of UK HR decision-makers still working with consultancies, only 26% find them essential. The majority described their biggest pain points as a lack of cost transparency (44%), limited flexibility (42%), and general inefficiency (41%). Kognitiv identifies these hidden costs—resulting from slow approvals and outdated systems—as a "Complexity Tax," a drain on organizational time, budgets, and creativity that is driving clients away.
The Future: A Hybrid AI-Human Model
The findings point to a new, preferred consultancy model that blends artificial intelligence with human oversight. Over half (59%) of HR leaders believe the future involves a combination of AI and human expertise, where technology is directed and overseen by skilled professionals. As Mark Grignon, CEO at Kognitiv, stated, "This isn't science fiction; it requires a human in charge, directing the work and maintaining oversight. Firms that aren't figuring this out aren't just limiting what AI can do for you; they're sticking you with the bill for their own slow, expensive payroll."
The Kognitiv report signals a pivotal moment for the consulting industry. HR leaders are no longer willing to pay the "Complexity Tax" associated with outdated models and are actively seeking partners who can leverage AI to deliver smarter, faster, and more transparent services, fundamentally redefining the value proposition of external expertise.
About Kognitiv
Kognitiv is a certified Workday AMS Services Partner delivering flexible, pay-as-you-use consulting that aligns with Workday's innovation and agility. Since 2016, Kognitiv's Post Production Support (PPS) model has empowered Workday customers to get the support they need–when they need it–without being locked into fixed-spend agreements. From ad-hoc ticket resolution and fully managed services to new SKU deployments, custom app development, project management, and change management, Kognitiv supports every phase of the Workday product lifecycle. Clients are backed by world-class consulting teams with the right blend of skills to support the full spectrum of Workday functionality.
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