The consulting world is undergoing a significant transformation, with artificial intelligence (AI) taking on tasks previously handled by junior employees. McKinsey & Company, a leading global consulting firm, is at the forefront of this shift, increasingly relying on its generative AI platform to draft proposals and create PowerPoint slides. This move signifies a fundamental change in the way consulting firms operate and allocate resources, potentially impacting the roles and responsibilities of consultants at all levels.
The Rise of AI in Consulting: McKinsey’s Lilli Platform
McKinsey’s AI platform, known as Lilli, is a proprietary system designed to leverage the firm’s extensive knowledge base and streamline various consulting tasks. Unlike publicly available AI tools like OpenAI’s ChatGPT, Lilli allows consultants to input confidential client data with confidence, ensuring data security and compliance. This is crucial for maintaining client trust and protecting sensitive information in the competitive consulting landscape.
Lilli offers a range of AI-powered capabilities, including the ability to generate PowerPoint slides from simple prompts and ensure reports maintain the appropriate tone through a feature called “Tone of Voice.” These tools are designed to enhance efficiency and consistency, allowing consultants to focus on higher-level strategic thinking and client interaction.
Named after Lillian Dombrowski, the first professional woman hired by McKinsey in 1945, Lilli has rapidly evolved since its launch in 2023. Today, McKinsey views Lilli as an integral member of its consulting teams, with over 75% of the firm’s employees actively using the tool on a monthly basis. This widespread adoption underscores the growing importance of AI in the consulting process and its potential to reshape the industry.
The development of Lilli represents a significant investment by McKinsey in AI technology. The firm recognized early on the potential of AI to transform the consulting industry and made a strategic decision to build its own proprietary platform. This decision gives McKinsey a competitive advantage by allowing them to control the development and deployment of AI tools tailored to the specific needs of its consultants and clients.
Lilli’s architecture is designed to be scalable and adaptable, allowing it to incorporate new AI technologies and algorithms as they emerge. The platform is constantly being updated and improved based on user feedback and performance data. McKinsey’s commitment to continuous innovation ensures that Lilli remains at the cutting edge of AI technology.
The platform also incorporates robust security measures to protect client data from unauthorized access and cyber threats. McKinsey understands the importance of maintaining client confidentiality and has implemented strict protocols to ensure that all data is handled securely.
The successful deployment of Lilli has required a significant cultural shift within McKinsey. Consultants have had to learn how to work effectively with AI tools and integrate them into their daily workflows. McKinsey has provided extensive training and support to help consultants adapt to this new way of working.
The firm has also established a dedicated AI team to oversee the development and deployment of Lilli. This team is responsible for ensuring that the platform is aligned with the firm’s overall strategy and that it is delivering tangible benefits to consultants and clients.
AI-Driven Efficiency and the Evolving Role of Consultants
The integration of AI into consulting operations raises questions about the future of junior employees and the tasks they typically perform. However, McKinsey’s leadership suggests that AI is not intended to replace consultants but rather to augment their capabilities and free them from mundane tasks.
According to Kate Smaje, McKinsey’s global leader of technology and AI, AI can automate tasks like creating PowerPoint presentations, allowing consultants to focus on more strategic and valuable activities for clients. This shift in focus can lead to improved client outcomes and a more fulfilling work experience for consultants.
Instead of needing “armies of business analysts creating power projects,” technology can handle these tasks, freeing up consultants to engage in more complex problem-solving and client relationship management. This shift is not necessarily about reducing the number of consultants but rather about enabling them to perform higher-value work.
The traditional consulting model often involves junior consultants spending countless hours on tasks such as data collection, analysis, and presentation preparation. These tasks, while important, can be time-consuming and repetitive. AI can automate many of these tasks, freeing up junior consultants to focus on more strategic and analytical work.
For example, AI can be used to automatically generate reports from client data, identify key trends and insights, and create compelling visualizations. This allows junior consultants to spend more time interpreting the data, developing recommendations, and presenting their findings to clients.
The integration of AI also allows consultants to handle more complex projects and deliver more comprehensive solutions. By automating routine tasks, consultants can free up their time to focus on more strategic issues and develop innovative solutions.
Furthermore, AI can help consultants to identify and mitigate risks. By analyzing large datasets, AI can identify potential problems and vulnerabilities that might otherwise be missed. This allows consultants to take proactive steps to prevent problems from occurring and protect their clients’ interests.
The evolving role of consultants in the age of AI requires new skills and competencies. Consultants need to be able to understand and interpret AI-generated insights, develop recommendations based on those insights, and communicate their findings to clients in a clear and concise manner.
They also need to be able to work effectively with AI tools and integrate them into their daily workflows. This requires a willingness to learn new technologies and adapt to changing work patterns.
McKinsey is investing heavily in training and development programs to help its consultants acquire these new skills. The firm is providing consultants with access to online courses, workshops, and mentoring programs designed to enhance their AI capabilities.
McKinsey’s Workforce and the Broader Adoption of AI in Consulting
McKinsey currently employs approximately 40,000 staff globally, a decrease from over 45,000 at the end of 2023. While it’s difficult to attribute this reduction solely to the adoption of AI, it’s clear that technology is playing an increasingly significant role in shaping the firm’s workforce needs.
Other consulting firms are also embracing AI, both through internal tools and AI-focused consulting services. This widespread adoption suggests that AI is not just a passing trend but a fundamental shift in the way consulting services are delivered.
Bain & Company utilizes Sage, a proprietary chat platform powered by OpenAI, to enhance consultant productivity and knowledge sharing. PwC’s Strategy& unit relies on Microsoft Copilot to assist with various consulting tasks, demonstrating the diverse approaches firms are taking to integrate AI into their operations.
Boston Consulting Group (BCG) has seen significant growth in its AI-related advisory services, which now comprise a fifth of its overall revenue. This growth highlights the increasing demand for AI expertise among clients and the potential for consulting firms to capitalize on this trend. BCG expects its AI-related revenue to continue growing significantly in the coming years.
The adoption of AI in consulting is being driven by a number of factors, including the increasing availability of powerful AI tools, the growing demand for AI expertise among clients, and the need for consulting firms to improve their efficiency and competitiveness.
As AI becomes more prevalent in the consulting industry, firms are increasingly looking for ways to leverage this technology to improve their services and gain a competitive edge. This includes developing internal AI tools, offering AI-related consulting services, and partnering with AI vendors.
The decline in McKinsey’s workforce illustrates the impact that AI can have on employment levels. While AI may not eliminate jobs entirely, it can automate certain tasks and reduce the need for human labor. This can lead to a decrease in headcount, particularly in areas where tasks are highly repetitive or easily automated.
However, the adoption of AI can also create new job opportunities. Consulting firms need experts to develop, deploy, and maintain AI tools. They also need consultants who can understand and interpret AI-generated insights and communicate their findings to clients.
The key to navigating the changing workforce landscape is to invest in training and development programs that help employees acquire the skills they need to thrive in the age of AI. This includes providing employees with access to online courses, workshops, and mentoring programs that enhance their AI capabilities.
The Expanding AI Ecosystem
McKinsey’s AI ecosystem extends beyond its proprietary platform, Lilli, to include partnerships with leading AI companies such as Anthropic, Cohere, and Mistral AI. This diverse ecosystem allows McKinsey to access the latest AI technologies and tailor solutions to meet the specific needs of its clients.
By partnering with multiple AI vendors, McKinsey can offer a wider range of AI capabilities and avoid being locked into a single technology provider. This flexibility is crucial in the rapidly evolving AI landscape, where new technologies and approaches are constantly emerging.
The firm’s AI arm, QuantumBlack, further enhances its AI capabilities, providing specialized expertise in areas such as machine learning, data science, and AI strategy. This combination of internal expertise and external partnerships allows McKinsey to deliver comprehensive AI solutions to its clients.
The development of a robust AI ecosystem is essential for consulting firms to stay ahead of the curve. By partnering with leading AI companies, firms can access the latest technologies and expertise, which can help them to develop innovative solutions for their clients.
McKinsey’s approach to building its AI ecosystem is based on the principle of "best of breed." The firm seeks out the most innovative and effective AI technologies and solutions from a variety of vendors and partners.
This allows McKinsey to offer its clients a wide range of AI capabilities, tailored to their specific needs. It also prevents McKinsey from being locked into a single technology provider, which could limit its ability to adapt to changing market conditions.
QuantumBlack plays a key role in McKinsey’s AI ecosystem. The firm provides specialized expertise in areas such as machine learning, data science, and AI strategy. This expertise is essential for helping clients to understand and implement AI solutions effectively.
QuantumBlack also works closely with McKinsey’s other business units to integrate AI into their consulting services. This allows McKinsey to offer its clients a comprehensive suite of AI-enabled solutions.
The success of McKinsey’s AI ecosystem depends on its ability to attract and retain top AI talent. The firm is investing heavily in training and development programs to help its consultants acquire the skills they need to thrive in the age of AI.
McKinsey is also actively recruiting AI experts from around the world. The firm offers competitive salaries and benefits, as well as opportunities for professional growth and development.
The Future of Consulting: AI as a Catalyst for Innovation
The integration of AI into consulting is transforming the industry, creating new opportunities for innovation and efficiency. By automating routine tasks, AI frees up consultants to focus on higher-value activities such as strategic planning, client relationship management, and complex problem-solving.
As AI technology continues to evolve, it’s likely to play an even greater role in the consulting process. Consulting firms that embrace AI and invest in developing their AI capabilities will be well-positioned to thrive in the future.
The shift towards AI-driven consulting also raises important questions about the skills and training needed for consultants in the future. Consultants will need to develop a strong understanding of AI technologies and how they can be applied to solve business problems. They will also need to be able to effectively communicate with AI systems and interpret the results they generate.
The consulting industry is at a pivotal moment, with AI poised to reshape the way services are delivered and the roles of consultants. By embracing AI and adapting to the changing landscape, consulting firms can unlock new levels of efficiency, innovation, and client value.
The future of consulting is likely to be characterized by a greater emphasis on data-driven decision-making, personalized solutions, and continuous innovation. AI will play a key role in enabling these trends.
Consultants will need to be able to leverage AI to analyze large datasets, identify key trends and insights, and develop tailored solutions for their clients. They will also need to be able to communicate effectively with AI systems and interpret the results they generate.
The consulting firms that are best able to adapt to these changes will be the ones that are able to attract and retain top AI talent, invest in training and development programs, and build a robust AI ecosystem.
These firms will be well-positioned to help their clients navigate the challenges and opportunities of the AI age and to achieve their business goals. The consulting industry is experiencing a paradigm shift, and AI is at the heart of it all. The firms that embrace this technology and adapt to the changing landscape will be the ones that thrive in the future. The firms that resist or lag behind risk becoming obsolete. The future of consulting is here, and it’s powered by AI. The time to act is now. Consulting firms must embrace AI, invest in their AI capabilities, and prepare their workforce for the changes to come. Only then can they unlock the full potential of AI and deliver exceptional value to their clients. This transformation requires a holistic approach, encompassing technology, processes, and people. Consulting firms must invest in the right AI tools, streamline their workflows to incorporate AI, and train their consultants to effectively leverage these new capabilities. The future of consulting is not just about technology; it’s about how we use technology to empower our consultants and deliver better outcomes for our clients. It’s about creating a new kind of consulting firm, one that is agile, innovative, and data-driven.