UK organisations are facing mounting pressure from rising costs, weak economic growth and escalating cybersecurity threats, while efforts to adopt artificial intelligence are being held back by skills shortages and concerns over data protection, according to new research.
The findings from the Management Consultancies Association (MCA) Client Survey 2026, conducted by Savanta, highlight the growing strain on both private and public-sector organisations as they attempt to manage tight budgets while modernising operations.
Cost control and budget constraints were identified as the single biggest concern for leaders, closely followed by heightened exposure to cybersecurity risks and data protection challenges, set against a backdrop of sluggish economic growth.
Cyber threats and data breaches have become a central operational concern for organisations, with increasing emphasis placed on resilience and compliance as digital systems expand across critical functions.
The consulting sector — identified by the Government as a priority growth industry — is responding to these pressures, with the MCA projecting growth of 6pc this year and 7pc next year, while some smaller and mid-sized firms are expanding at around 25pc.
Despite widespread recognition of artificial intelligence’s potential, adoption is being slowed by practical barriers rather than a lack of interest.
The survey found that 40pc of organisations cite data security and privacy concerns as a key constraint on AI deployment, while 34pc point to a shortage of skilled internal staff. A further 28pc highlight difficulties in establishing governance frameworks and clear strategic roadmaps.
By contrast, the direct cost of implementation is increasingly seen as a secondary issue, with fewer than a third of respondents identifying it as a major barrier.
The findings suggest that structural capability gaps — rather than financial constraints alone — are now the dominant brake on AI adoption across UK organisations.
The research also points to a change in how organisations evaluate external advisory support. Clients increasingly judge success by the delivery of agreed outcomes, relevance to specific challenges, and demonstrable value for money, rather than by broad claims of innovation or transformation.
The transfer of skills and knowledge is also emerging as a key requirement, reflecting a growing emphasis on internal capability-building rather than long-term dependence on external sources.
Demand remains strongest for digital and technology-related work, followed by strategy and programme management services. However, digital capability is now widely viewed as a baseline expectation rather than a competitive advantage.
Organisations are increasingly seeking to ensure that technology investments are directly linked to productivity improvements, risk management and operational resilience, rather than standalone transformation programmes.
Tamzen Isacsson, Chief Executive of the Management Consultancies Association, said:
“In challenging economic conditions consulting is helping organisations move faster, manage risk and deliver real productivity gains. The MCA Client Survey 2026 shows the competitive edge now lies in being able to provide judgement, sector knowledge and trust that is earned through outcomes. As UK organisations navigate cost pressures, digital disruption, and increasing governance demands, the leading MCA consulting firms will respond with practical expertise and genuine partnership.”