McKinsey leans into AI

⏳ TL;DR

• McKinsey has deployed 12,000 AI agents internally to automate tasks like PowerPoint creation, research, and logic verification
• The firm’s headcount dropped from 45,000 to 40,000 since 2023 as it shifts toward leaner teams
• About 40% of McKinsey’s revenue now comes from AI-related projects, signaling a major business transformation
• Junior consultants face job disruption, but senior partners remain valuable due to irreplaceable human insight

✍️ The Story

In an era where artificial intelligence is reshaping industries, McKinsey & Company stands as a real-world laboratory for how professional services must evolve—or risk obsolescence. For decades, the firm built its reputation on elite strategy work, with junior consultants grinding through endless PowerPoint decks to deliver insights to C-suite clients. Now, that model is being rewritten by Lilli—the firm’s internal AI agent system—deployed across 12,000 instances.

Bob Sternfels, McKinsey’s global managing partner, says AI isn’t just a tool—it’s a conversation starter at every meeting. And it’s already changing the game: what once took 14 consultants days can now be done by a handful of experts paired with AI agents. The result? A workforce shrinkage of about 5,000 people since 2023, but also a shift toward outcome-based consulting—where clients pay for results, not just recommendations.

The implications ripple beyond McKinsey. As one commentator put it, this isn’t just about efficiency—it’s about redefining value. Junior roles focused on grunt work are disappearing, but the most seasoned consultants—who bring context, judgment, and lived experience—are becoming more valuable than ever. After all, AI can draft slides, but it can’t understand the messy reality of a boardroom or the nuance of a client’s culture.

This transformation isn’t happening in isolation. McKinsey’s $1 billion investment in AI signals that the future belongs to firms that don’t just talk about digital transformation—they live it. The question now isn’t whether AI will disrupt consulting—it’s who will lead the next wave of innovation.

🔥 Why It Matters

• This case shows how even the most prestigious firms must adapt to stay relevant in the AI age
• It highlights the tension between automation and human expertise—especially for developing future leaders
• The shift from hours-based billing to outcomes-based pricing could redefine entire industries

🔗 How It Connects

• McKinsey’s move mirrors broader trends in professional services, including law, accounting, and healthcare
• Related: Wall Street Journal report on McKinsey’s AI investment
• See also: How AI is transforming the consulting industry