AI Is Forcing a Rethink of HR Consulting: What HR Leaders Want Next
HR leaders are sending a clear message: integrate AI, cut the fluff, prove the value. New research from Workday services partner Kognitiv shows 80% of UK HR leaders want consultancies to better integrate AI, while 44% say firms have been slow to adopt it. The result? Spend is shifting.
In the UK, 70% of HR leaders say AI has already helped reduce consultancy costs, and 46% believe AI can replace most of the work consultants do. Still, the future isn't "AI only." Most (59%) expect a hybrid model-AI doing the heavy lifting, guided by experienced people who own outcomes.
Key findings at a glance
- 80% of UK HR leaders want consultancies to include AI more effectively
- 44% say consultancies have been slow to adopt or adapt to AI
- 70% in the UK have already cut consultancy spend thanks to AI
- 46% in the UK think AI can replace most consultant work
- 59% expect a model that blends AI with human oversight
- 95% still work with consultancies, but only 26% see them as essential
- 58% say consultancies help with specific challenges; 16% report disappointing experiences
The "Complexity Tax" holding teams back
HR leaders highlight five recurring pain points that inflate time and budgets-what Kognitiv calls the "Complexity Tax." It's the hidden cost of slow approvals, outdated systems, and red tape that stalls progress and drains creativity.
- Lack of cost transparency (44%)
- Limited flexibility of services (42%)
- Inefficiency (41%)
- Failure to understand business needs (40%)
- Long, restrictive contracts (29%)
As Kognitiv CEO Mark Grignon puts it: "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."
What this means for HR
- Expect AI-first delivery: Ask partners to show which tasks, workflows, and reports will be AI-accelerated, and how that reduces hours and cost.
- Insist on transparency: Get clear pricing, delivery timelines, and measurable outcomes tied to your KPIs.
- Prefer flexible models: Pay-as-you-use support beats long, restrictive retainers-especially for Workday run-state needs.
- Keep a human in charge: Use AI for speed and scale, but keep governance, data quality, and change management with accountable experts.
Questions to put to any consultancy now
- Which parts of our scope will be automated or AI-assisted, and by how much time/cost?
- How do you ensure human oversight, testing, and auditability of AI outputs?
- What data sources and guardrails do you use to reduce bias and errors?
- Can we start with a small, outcome-based sprint instead of a long contract?
- How will you transfer knowledge so my team becomes self-sufficient?
Practical moves for HR teams
- Map quick wins: Identify 3-5 repetitive Workday tasks (reporting, ticket triage, org updates) that AI can accelerate.
- Set procurement standards: Add AI requirements and transparency clauses to all new consulting SOWs.
- Pilot, then scale: Run a 60-90 day pilot with clear KPIs (cycle time, cost per ticket, data accuracy) before expanding.
- Upskill your team: Build AI literacy across HRBPs, COEs, and Ops so you can evaluate vendors and keep control of outcomes.
Context: Workday + AI
Given Workday's ongoing AI investments, HR leaders should expect stronger automation across reporting, data hygiene, talent insights, and case management. If a partner can't demonstrate this in live workflows-not slides-it's a red flag.
Want to accelerate AI skills in your HR team?
If you're building internal capability to evaluate vendors and run AI-assisted HR operations, here's a curated place to start:
About the research
The findings come from Kognitiv's report "The New Age of Consulting: Powered by AI, Driven by People," based on an online survey of 500 HR decision makers in the UK and Germany. The research was conducted by Sapio Research in October 2025.
About Kognitiv
Kognitiv is a certified Workday AMS Services Partner offering flexible, pay-as-you-use consulting across the full Workday product lifecycle-from ad-hoc support and managed services to deployments, app development, and change management.
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