McKinsey, the elite consulting firm, is facing an existential crisis. With AI capable of analyzing information, crunching data, and delivering slick PowerPoint decks within seconds, the firm’s human expertise is being threatened. But instead of fighting the trend, McKinsey is embracing AI and rewiring its business.
The firm has already deployed thousands of AI agents to assist consultants in building PowerPoint decks, taking notes, and summing up interviews and research documents for clients. The most-used bot helps employees write in a classic ‘McKinsey tone of voice’, while another popular agent checks the logic of a consultant’s arguments.
The firm’s global managing partner, Bob Sternfels, sees a day when McKinsey has one AI agent for every human it employs. This shift is expected to change the way the company works with clients, hires, and takes on projects.
The consulting industry is emerging as an early test case for how an industry must adapt to stay relevant in the AI era. McKinsey, like its rivals, grew by hiring professionals from top universities and throwing them at projects for clients. But with AI, many projects can be done with far fewer people, and junior employees will likely be affected most immediately.
To stay ahead, McKinsey is shifting its focus from strategy advice to helping clients implement new systems and manage change. The firm is also experimenting with new business models, such as outcomes-based arrangements where McKinsey is paid partly on whether a project achieves certain results.
The question is, will McKinsey be able to adapt quickly enough to stay relevant in the AI era?