Consultants deploy shadow AI copilots to survive industry layoffs
Elite consultants are secretly using unauthorized AI tools to stay competitive amid widespread job cuts driven by automation.
May 27, 2025 - Consulting firms are rapidly adopting generative AI, leading to significant workforce reductions. Major players like PwC, EY, Accenture, and McKinsey have announced layoffs, with IBM CEO Arvind Krishna acknowledging AI's role in replacing hundreds of HR roles. This has created a survival mindset among consultants, who are increasingly relying on unauthorized "shadow AI" tools to maintain their competitive edge.
The Rise of Shadow AI
Fearing job losses, elite consultants are building custom AI applications using Python and APIs from platforms like OpenAI, Google Gemini, and Perplexity. These tools, often developed without IT approval, are used for:
- Pitch and proposal automation
- Market segmentation and targeting
- Financial modeling and scenario analysis
- Client relationship management
According to Cyberhaven, 73.8% of workplace ChatGPT accounts are personal, not corporate, highlighting the widespread use of shadow AI. Prompt Security CEO Itamar Golan notes, "We see 50 new AI apps a day, and we’ve already cataloged over 12,000."
The Scale of the Phenomenon
VentureBeat's research, based on data from Prompt Security, WinWire, and interviews with 14 top consulting firms, estimates:
| Use Case Category | Estimated Shadow AI Apps (Q2 2025) | Primary Tools Used |
|---|---|---|
| Pitch & Proposal Automation | 12,000 | GPT-4, Gemini, Replit, Colab |
| Market Segmentation | 9,000 | Perplexity, Gemini APIs |
| Research Assistants | 15,000 | Claude 3, Google Search APIs |
| Total | 74,500+ |
Governance Challenges
Vineet Arora, CTO of WinWire, emphasizes that traditional IT tools lack visibility into shadow AI. He recommends:
- Regular shadow AI audits
- Creating an Office of Responsible AI
- Deploying AI-aware security controls
- Avoiding blanket bans, which can fuel further shadow AI development
The Future of Shadow AI
Projections suggest shadow AI apps could exceed 160,000 by mid-2026. What began as productivity hacks has evolved into a parallel delivery stack, operating outside formal governance yet powering high-value client work.
"Shadow AI is no longer a fringe toolset," says Arora. "It’s now a decisive factor in how consultants deliver client value."
Consulting firms must balance innovation with governance to harness shadow AI's potential while mitigating risks.
About the Author
Alex Thompson
AI Technology Editor
Senior technology editor specializing in AI and machine learning content creation for 8 years. Former technical editor at AI Magazine, now provides technical documentation and content strategy services for multiple AI companies. Excels at transforming complex AI technical concepts into accessible content.