Aon | Professional Services Practice
Navigating Risk and Opportunity: Key Takeaways from Aon’s 2025 Consulting Firm Symposium
Release Date: January 2026Technological innovation, evolving regulatory landscapes, and shifting talent dynamics are rapidly transforming the practice of consulting. The Professional Services Practice at Aon’s November 2025 Consulting Firm Symposium explored the most pressing risks and emerging opportunities facing consulting firms.
Key Takeaways
- The Professional Services Practice hosted a Consulting Symposium in New York on November 4, 2025
- The Symposium included panels with discussions on AI, cyber security, claims, governance and the primary importance of talent
- Consulting firm success will depend on proactive risk management, investment in talent, transparent client relationships, and agile adaptation to regulatory and technological change
AI Drives New Risk Profiles
Generative and agentic AI are transforming how consulting firms deliver value. They are also increasing competition by enabling smaller and startup firms to compete with larger established firms. Winners in this environment are the firms that can adapt and drive change but also balance rapid AI adoption with responsible use.
Key areas of concern are:
- Client Demands: Firms need to provide transparency and seek consent around AI use in client engagements. This also requires rigorous vetting of third-party vendors and technology platforms, which increasingly have built-in AI features.
- Regulatory Patchwork: Although there is movement on a federal AI framework, firms currently must navigate a maze of state-level data privacy laws. Adopting the most comprehensive standards (e.g., California Privacy Protection Agency (CPPA)) is often the safest route.
Cybersecurity and Data Privacy: Ongoing Challenges for Consulting Firms
The valuable data held by professional service firms ensure that they will remain prime targets for increasingly sophisticated cyber-attacks. Ransomware and business email compromise (BEC) remain leading incident types.
Among the trends noted by incident response firms:
Human Error Remains Decisive
The vital need for vigilance and ongoing training is underscored by human error accounting for 95% of incidents.
Ransom Demands
Professional services firms are increasingly a top target for ransomware demands. The average ransom demand increased to $1,130,070 in the second quarter 2025, a 104% jump from the previous quarter. However, firms are increasingly opting not to pay the ransom.
Notification Obligations
Knowing your notification obligations in the event of a cyber incident is particularly complicated for U.S.-based professional service firms, as regulations vary by state. Firms need to look at state, federal, and international law, their contractual obligations and precedents based on the outcome of regulatory enforcement actions.
Class Action Litigation
Data breach class actions are on the rise, aided by AI allowing plaintiff’s firms to more easily watch for incidents, identify named plaintiffs and file suit. Consulting firms should implement best practices to mitigate the impact of potential litigation, such as:
- retaining a full inventory of all metadata tracking technologies and ensuring the collection of consent in line with legal requirements
- ensuring the alignment of their actual practice with their privacy policy
- keeping the potential notice population as small as possible by not retaining any sensitive information that is not absolutely required
Rising Claim Costs and Complexity
The evolving professional liability landscape includes increases in the value of losses and in the amounts paid on defense costs, with management consulting claims driving the frequency of publicly known consulting professional liability claims.
In navigating this dynamic environment, it is important for firms to understand the structure of their insurance placement, their policy reporting requirements and current market dynamics.
Our claim advocates suggest following these best practices:
- Timely Reporting of Matters: When in doubt, report. Overreporting is preferable to risking late notice. Early engagement with insurers can make all the difference in severe cases.
- Underwriter Relationships: Strong relationships with insurers are vital in the event of a claim. Firms accessing the Bermuda market are well served by regular in-person meetings.
The Boardroom: Governance and Risk Oversight
Boards oversee not just financial performance but also risk management, especially around AI and cyber. By prioritizing governance and risk oversight, boards can help their firms navigate uncertainty, protect reputation, and maintain stakeholder confidence in an increasingly complex operating environment.
Some key takeaways about governance and risk oversight include:
- Risk Committees on the Rise: Establishing dedicated risk and compliance committees is becoming best practice. These committees identify, assess, and monitor emerging risks, such as data privacy, cyber threats, and technology-driven disruption. By formalizing risk oversight, boards can ensure that risk management is integrated into strategic decision-making.
- Legal Obligations: Courts and regulators expect boards to demonstrate active engagement in risk oversight, including responding to warning signs (“red flags”) and ensuring appropriate systems are in place to address potential issues.
People and Relationships Matter
Even in the context of rapid technological advances, regulatory change, and the adoption of AI, consulting firms consistently identify people and relationships as their most valuable assets. Throughout the symposium, industry leaders emphasized that AI can automate processes and augment decision-making, but it cannot replace the judgment, creativity, and trust that human consultants bring to client engagements.
Key areas of concern are:
Talent
Attracting, retaining, and developing talent remains essential. Firms are investing in apprenticeship models, upskilling, and fostering cultures of adaptability to ensure their teams are equipped for the future. As AI takes over technical tasks, the human element – empathy, ethical judgment, and relationship-building – will become even more central to sustaining client loyalty and driving innovation.
Relationships and Client Trust
Relationships with clients, colleagues, and partners are the foundation of success for consulting firms, enabling them to deliver tailored advice and build trust in an increasingly complex environment. Building and maintaining client trust is fundamental to the consulting industry, particularly as firms adopt new technologies and navigate complex regulatory environments. Transparent communication about how data and AI are used, combined with rigorous privacy and cybersecurity practices, helps reinforce confidence and strengthen long-term client relationships.
Conclusion
The consulting industry stands at a crossroads, facing unprecedented risks and opportunities. Success will depend on proactive risk management, investment in talent, transparent client relationships, and agile adaptation to regulatory and technological change.
Insurance brokers and risk advisors have a crucial role to play in guiding firms through this complexity, helping them not just survive, but thrive.
Contact
The Professional Services Practice at Aon values your feedback. To discuss any of the topics raised in this article, please contact Lisa DeMotta or Catherine Jones or a member of your Aon client service team.
Lisa DeMotta
Vice President and Director
New York
Catherine Jones
Senior Vice President and Executive Director, Consulting Firm Leader
New York
About Aon
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