• The age of freewheeling AI spending may be coming to an end.
• Consulting firms are rethinking how much they, and their clients, spend on AI.
• Tell us how spending at your consulting firm has changed.

Companies are learning that there's such a thing as spending too much on AI.

As the cost of AI tools grows, executives are recalibrating. Amazon recently removed its employee-made leaderboard for tracking AI token usage because it encouraged excessive spending. Walmart, which developed a vibe-coding tool for employees, recently set limits on the use of tokens. Uber COO Andrew MacDonald said it's hard to justify the money his company is spending on AI.

Cisco Chief Product Officer Jeetu Patel also pushed back on the cost of tokens. He said at an event recently that the price is "far higher than the actual value these tokens are generating at scale."

For the consulting industry, the rise of AI was a near-existential threat. At first glance, chatbots can do a lot of the work of consultants, particularly those early in their careers. Most firms moved quickly to attract clients who needed help integrating the technology into their own companies. And they quickly adopted it themselves.

KPMG, for example, has built a dashboard to track how often employees in its US advisory division use AI tools, part of a broader effort to move from basic adoption to more sophisticated use. McKinsey plans to go further. CEO Bob Sternfels said in January that the firm uses roughly 25,000 AI agents alongside its 40,000 human employees, and hopes one or more agents will eventually support every employee.

The surge in spending, however, has raised a question: Are companies investing in AI strategically or simply spending to avoid being left behind? It's something consulting firms are working to answer for both their clients and themselves.

Tell us how AI spending has changed at your consulting firm:

For now, the answer appears to be: keep spending, but more strategically.

In a recent report on corporate AI investment, Boston Consulting Group found that companies expect to more than double their AI spending in 2026, from roughly 0.8% of revenue to about 1.7%. For large enterprises, that shift represents billions of dollars flowing into AI strategies that remain, in many cases, experimental and difficult to measure.

Russell Fradin, CEO and cofounder of Larridin, a platform that helps companies — including major consulting firms — measure the returns on AI usage, said the spending trend will continue.

"We haven't seen anyone talking about spending less in AI next year," Fradin told Business Insider. "They're just talking about instrumenting to understand where it goes."

Companies, Fradin said, are coming to the consensus that they "can't 10x spend every year forever."

• IBM's consulting arm monitors the work of AI agents using a real-time dashboard.
• IBM says AI agents have sped up security investigations, cutting task time from 45 to a few minutes.
• IBM Consulting's revenue reached $21 billion in 2025, driven by demand for AI solutions.

At IBM's consulting arm, the future isn't a slide deck or a strategy memo — it's a live dashboard where humans monitor the work of AI agents in real time.

Earlier this month, Mohamad Ali, senior vice president of IBM Consulting, walked Business Insider through the dashboard that the company both uses internally and recently released to clients.

"Every hour I can see what's going on with all the humans associated with digital workers," and vice versa, he said. "That is the new consulting model going forward."

The dashboard is known internally as "Consulting Advantage." The company unveiled it in 2024 to help its own consultants build and manage teams of AI agents. This January, it unveiled "Enterprise Advantage," a similar version of the platform for clients that allows them to build and manage AI agents at scale.

In recent years, the firm has made itself the testing ground for building and deploying digital workers as it prepares clients for a future defined by AI. Ali said the firm has digital staff working side by side with humans on more than 150 client engagements.

Take the example of a typical security operations center, he said. When an alert comes in, a human investigator would normally spend about 45 minutes combing through logs to figure out what went wrong and what to do next. At IBM, he said, that process is increasingly handled by AI.

Digital workers first "generate an investigation plan." Then they execute it in real time. Multiple agents tackle different parts of the problem simultaneously, passing tasks back and forth, he said. Then they run a risk analysis and produce a report. The process now takes just a couple of minutes. The findings are then passed back to a human — with key actions highlighted — and the human verifies it.

In January alone, IBM used this approach to complete 52,000 investigations, Ali said.

IBM has evolved dramatically from its early days as a maker of mainframe computers into a key player in the AI boom. The company said its generative AI department was valued at $12.5 billion during its fourth-quarter earnings call.

Its consulting department, especially, has seen an uptick due to demand for generative AI and services that help clients implement it. Consulting revenue for 2025 came in at over $21 billion, up from about $20.7 billion in 2024.

IBM Consulting has been around for decades. The company acquired PwC's consulting arm in 2002. PwC would later rebuild its consulting business after a five-year noncompete clause expired.

IBM Consulting now employs about 150,000 employees and says its work overlaps with the Big Four and more technology-focused firms like Accenture.

"We don't do, like, what markets you should be in," Ali said. "We do strategy around 'how do you take your corporate strategy and implement it?'"

And right now, he said, there's a big question in corporate strategy: How do you prepare for a world where humans work alongside AI agents?