Navigating the Intersectionality of Artificial Intelligence, Data Privacy, and Strategic Consulting: A Case Study on the EU’s Regulatory Framework
Keywords:
Artificial Intelligence, Data Privacy, Strategic Consulting, EU AI Act, Qualitative Analysis
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.
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2. Axelsson, F., & Leufvén, J.K. (2025). Exploring AI Usage in Management Consulting Leveraging AI for Potential Benefits at the Intersection of Business and Technology [Masters Thesis, Chalmers University of Technology]. https://odr.chalmers.se/server/api/core/bitstreams/0b29c234-159c-4e33-83fa-92bb589c9a0a/content
3. Basavaraju, C. (2025). The Role of Artificial Intelligence (AI) in Shaping Sustainable Business Practices and the Evolving Landscape of Management Consulting [Masters Thesis, National College of Ireland]. https://norma.ncirl.ie/7787/1/chiragbasavaraju.pdf
4. Ciobanu, A. C., & Meșniță, G. (2021). AI ethics in business – A bibliometric approach. Review of Economic and Business Studies, 14(2), 169–202.
5. Congressional Research Service. (2025). Regulating artificial intelligence: U.S. and international approaches and considerations for Congress. https://crsreports.congress.gov/product/pdf/R/R48555
6. Dell’Acqua, F., Saran, A., Mcfowland, R., Krayer, L., Mollick, E., Candelon, F., Lifshitz-Assaf, H., Lakhani, K., & Kellogg, K. (2023). Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality. Harvard Business School Working Paper No. 24-013. https://www.hbs.edu/ris/Publication%20Files/24-013_d9b45b68-9e74-42d6-a1c6-c72fb70c7282.pdf
7. Edwards, L. (2022). The EU AI Act: A summary of its significance and scope. Ada Lovelace Institute.
8. European Commission. (2021). Proposal for a regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021PC0206
9. European Commission. (2024, March 8). European AI Office – Shaping Europe’s digital future. https://digital-strategy.ec.europa.eu/en/policies/ai-office
10. EY Global. (2024, July 17). Why companies must prepare now for the new EU AI Act. EY Insights. https://www.ey.com/en_gl/insights/public-policy/why-companies-must-prepare-now-for-the-new-eu-ai-act
11. EY Global. (2025). How EY is navigating global AI compliance: The EU AI Act and beyond. https://www.ey.com/en_gl/insights/ai/how-ey-is-navigating-global-ai-compliance-the-eu-ai-act-and-beyond
12. Forradellas, R. F. R., & Gallastegui, L. M. G. (2021). Digital Transformation and Artificial intelligence applied to Business: legal regulations, economic impact and perspective. Laws, 10(3), 70. https://doi.org/10.3390/laws10030070
13. Gupta, A., Amarnani, M., Soanki, S., & Kishore, J. (2025). AI and data privacy in business. 2025 First International Conference on Advances in Computer Science, Electrical, Electronics, and Communication Technologies (CE2CT), 109–114.
14. International Council of Management Consulting Institutes. (2024). Navigating the future: A guide to AI in management consulting. ICMCI.
15. Kamaruddin, R. I. (2023). ChatGPT and the future of management consulting: Opportunities and challenges ahead [Masters thesis, Massachusetts Institute of Technology].
16. KPMG International. (2024). Decoding the EU Artificial Intelligence Act: Understanding the AI Act’s impact and how you can respond. https://home.kpmg/xx/en/home/insights/2024/02/decoding-the-eu-artificial-intelligence-act.html
17. Li, Z. (2024). AI ethics and transparency in operations management: How governance mechanisms can reduce data bias and privacy risks. Journal of Applied Economics and Policy Studies, 13, 89–93.
18. Luget et al. (2025, January 9). Insights on responsible AI from the Global AI Trust Maturity Survey. McKinsey & Company. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/tech-forward/insights-on-responsible-ai-from-the-global-ai-trust-maturity-survey
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20. Mbah, G. O. (2024). Data privacy in the era of AI: Navigating regulatory landscapes for global businesses. Int. J. Sci. Res. Anal, 13(2), 2396-2405.
21. Mohan, S. K. (2024). Management consulting in the artificial intelligence–LLM era. Management Consulting Journal, 7(1), 9–24.
22. Musch, S., Borrelli, M. C., & Kerrigan, C. (2023). Balancing AI innovation with data protection: A closer look at the EU AI Act. Journal of Data Protection & Privacy, 6(2), 135-152.
23. Nwaimo, C. S., Oluoha, O. M., & Oyedokun, O. (2023). Ethics and governance in data analytics: Navigating innovation and regulation. Journal of Data Ethics and Governance, 5(2), 45–67.
24. Oarue-Itseuwa, E. (2024). Artificial intelligence’s impact on the management consultancy sector over the next five years. Management Consulting Journal, 7(1), 49–58.
25. Olatoye, F. O., Awonuga, K. F., Mhlongo, N. Z., Ibeh, C. V., Elufioye, O. A., & Ndubuisi, N. L. (2024). AI and ethics in business: A comprehensive review of responsible AI practices and corporate responsibility. International Journal of Science and Research Archive, 11(1), 1433-1443.
26. Pattanayak, S. (2021). Navigating Ethical Challenges in Business Consulting with Generative AI: Balancing Innovation and Responsibility. International Journal of Enhanced Research in Management & Computer Applications, 10(2), 24-32.
27. Potturi, P. (2025). Ethical AI in Business Intelligence: Balancing Innovation with Responsible Data Use. European Modern Studies Journal. Vol. 9 No. 4.
28. Samokhvalov, K. (2024). The transformative impact of artificial intelligence on the management consultancy sector. Management Consulting Journal, 7(1), 59–68.
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31. Soller, H., Ohme, A., Schmitz, C., Strandell-Jansson, M., Chapman, T., & Zwiebelmann, Z. (2024, November 13). The European Union AI Act: Time to start preparing. McKinsey & Company. https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/the-european-union-ai-act-time-to-start-preparing
32. Tiwari, S. P. (2025). The implications of artificial intelligence in management consulting: A risk and barrier assessment. Multidisciplinary Reviews, 8(8), 2025244–2025244.
33. Vivek. (2025, March 18). EU AI Act: Understanding compliance costs and penalties. EU-ai. https://ai-eu-act.eu/blog/eu-ai-act-understanding-compliance-costs-and-penalties/
34. Whittlestone, J., Nyrup, R., Alexandrova, A., Dihal, K., & Cave, S. (2021). Ethical and societal implications of algorithms, data, and AI: A guideline for responsible innovation. Leverhulme Centre for the Future of Intelligence.
35. Wilson Sonsini. (2024). 10 things you should know about the EU Artificial Intelligence Act. Wilson Sonsini Goodrich & Rosati.
Published
2026-02-23
How to Cite
Harshita, H. (2026). Navigating the Intersectionality of Artificial Intelligence, Data Privacy, and Strategic Consulting: A Case Study on the EU’s Regulatory Framework. International Journal of Social Science Research and Review, 9(3), 209-222. https://doi.org/10.47814/ijssrr.v9i3.3285
Section
Main Articles
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