The perception that human-centered strategies are becoming less critical for businesses has been gaining traction across professional discussions and business commentary. However, I believe that the reality is more nuanced: the role of human-centered approaches is evolving, creating fresh opportunities for businesses to build enduring value by blending technological advancements with meaningful engagement strategies for customers and users.

Why Human-Centered Strategies Matter

A human-centered approach focuses on crafting products and services that align with customer journeys, values, and goals. When executed well, this approach identifies new growth opportunities, strengthens customer loyalty, and fosters repeat business. Beyond that, embedding these principles early in the innovation cycle can boost market positioning and drive long-term success.

Over the years, methodologies like user research, service design, and behavioral modeling have become staples in the toolkit of human-centered design (HCD) professionals. These approaches have empowered businesses to address increasingly complex markets. Yet, shifts in the economic landscape have placed new pressures on how these strategies are executed and valued, especially by independent consultants and agencies.

Shifting Economic Priorities

In recent years, macroeconomic factors—such as the pandemic, geopolitical uncertainty, and climate-related challenges—have reshaped business priorities. Companies are increasingly cautious in their investments, emphasizing short-term shareholder returns over longer-term customer value. This pivot has led to declines in customer loyalty, as many businesses focus on transactional services that don’t align with customer expectations or values.

Terms like “customer experience” have, in some cases, lost their transformative power, becoming associated with manipulation rather than meaningful engagement. While sectors like healthcare, public services, and durable goods still value long-term HCD strategies, even these industries face pressures to cut costs and prioritize quick wins.

This tension has created a critical opportunity for businesses that remain committed to long-term customer engagement as a differentiator. Leaders who embrace human-centered strategies—integrating them with cutting-edge technologies like AI—can redefine their market relevance and create sustainable growth.

The Rise of In-House Teams

One significant trend reshaping HCD is the insourcing of human-centered capabilities. Companies increasingly rely on internal teams to manage research and design, citing benefits such as cost savings, better integration, and improved data security. However, these teams often lack strategic influence, operating as siloed production units within IT or marketing departments. This limits their ability to deliver transformative customer value.

At the same time, businesses are engaging external consultants more selectively, often for overflow work or specialized expertise. The emergence of roles like “Customer Success Manager” reflects an industry-wide acknowledgment that retaining customers is more cost-effective than acquiring new ones. These positions could provide opportunities for experienced HCD professionals to work in partnership with internal teams to enhance their strategic impact.

The Role of Technology and AI

Technology has become integral to modern business value propositions, particularly as affordable software solutions allow companies to scale quickly. However, this shift has changed the role of HCD. Rather than focusing on strategic planning, many HCD efforts now center on execution, driven by standardized tools like Figma and data-driven metrics such as Net Promoter Scores (NPS).

The rise of AI has further accelerated this trend. Companies are reallocating resources to AI-driven solutions, drawn by promises of speed and efficiency. While AI tools can streamline certain research and design processes, they often fall short in capturing the nuanced “why” behind customer behaviors. By focusing on quantitative data, these tools risk overlooking outliers, workarounds, and aspirations—key insights that can spark innovation.

This is where experienced HCD professionals can step in. By combining storytelling with rich qualitative insights, they can complement AI-driven approaches, ensuring businesses remain connected to their customers’ deeper needs and motivations.

New Opportunities for Independent Consultants

The consolidation of consultancies by larger firms over the past decade has reshaped the landscape for independent HCD professionals. While many larger firms have deprioritized HCD in favor of core business services, independent consultants and boutique agencies have an opportunity to fill this gap. By leveraging their expertise and flexibility, they can offer specialized solutions that larger organizations might overlook.

Moreover, the demand for high-quality customer insights—particularly in industries like healthcare, energy, and financial services—remains strong. Independent consultants who can integrate human-centered strategies with emerging technologies stand to play a critical role in shaping the future of these sectors.

Looking Ahead

As businesses navigate this period of rapid change, the importance of putting people first remains clear. Companies that prioritize human-centered strategies will not only stand out in competitive markets but also build the resilience needed to thrive in an uncertain future. However, this requires a commitment to understanding customers beyond the surface level, investing in long-term value creation rather than short-term gains.

For independent consultants, the challenge is equally significant. By embracing new tools, staying connected to evolving customer needs, and positioning themselves as strategic partners, they can help businesses achieve sustainable success in this new paradigm.

The road ahead is complex, but one thing is certain: organizations that keep people at the heart of their strategies will be the ones to lead in the years to come. I’d love to hear your thoughts on how human-centered strategies are evolving and what opportunities you see in this shifting landscape. Let’s discuss in the comments!