Navigating the Intersectionality of Artificial Intelligence, Data Privacy, and Strategic Consulting: A Case Study on the EU’s Regulatory Framework

Abstract

The integration of Artificial Intelligence (AI) has sparked a significant strategic shift within the management consulting sector creating a divide in trust. AI surely does enhance the efficiency by automating the processes such as data analysis but the lack of transparency creates a rift making the erosion of data privacy as the most important concern. Data is surely the most important asset of any business consulting firm. This risk jeopardises the client confidentiality which is the cornerstone of the consulting relationships. This makes it mandatory for the consulting firms to incorporate the specialized AI governance into their administrative operations. This study explores the intersectionality between AI, Data Privacy and Strategic Consulting with a special focus on how the European Union’s regulatory framework is pushing the global firms to adapt their business models in order to attract the talent that combines AI expertise with crucial interpersonal skills thereby enhancing the role of the Hybrid Consultant. The results of the study indicate that the EU’s risk based extraterritorial regulations serve as regulatory mandate. The analysis reveals that AI is not a threat of job displacement but a catalyst for role transformation, automating repetitive tasks and challenging the traditional consulting pyramid model. The firms are compelled to shift their service offering towards responsible AI advisory and governance, placing ethical compliance as the core strategic differentiator for sustaining long term market relevance and client confidence.