# AI’s Quiet Takeover of the Consulting Industry
## A “Magical” Moment — With a Twist
Global top-tier consulting firm **McKinsey** has recently received an award from **OpenAI**, recognizing it as a major client in **token consumption**.
McKinsey proudly posted the medal on LinkedIn:
But something feels… off.
If you think about it: *clients pay millions for McKinsey’s PowerPoints, yet McKinsey turns out to be one of ChatGPT’s biggest customers?*
> This may suggest that those million-dollar strategy decks were, in fact, made — at least partly — by ChatGPT.
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## McKinsey’s AI Journey
Top consulting firms have **embraced AI with precision and efficiency**. McKinsey has been preparing quietly for years.
### Key Milestones
- **2015** – Acquisition of **QuantumBlack**, a UK-based data analytics company serving Formula 1 racing teams.
- Initially operated as an *experimental* data science team, developing algorithms, ML models, and visualizations.
- **2018** – Integrated fully into the McKinsey brand as the firm’s **AI-native consulting division**.
- **2023** – Launch of **Lilli**, McKinsey’s first internal AI tool, trained on **100,000+ internal documents and archives**.
### What Lilli Can Do
- Auto-generate PPTs from prompts.
- Polish text to match McKinsey’s tone.
- Draft project proposals and research summaries.
- Process **500,000+ queries/month**.
- Used daily by over **70% of McKinsey’s 40,000+ employees**.
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## Rivals in the AI Race
### Boston Consulting Group (BCG)
BCG has taken an even more aggressive AI approach:
- **8–9 internal AI tools** as of April.
- **Deckster** – Intelligent PPT editor.
- **GENE** – Voice assistant for brainstorming, podcasting, and live presentations.
- **AI usage rates included in employee performance evaluations**.
- **90%** adoption among 33,000 employees; half use AI heavily every day.
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## Efficiency Gains — and Layoffs
The widespread adoption of AI has **boosted productivity** but also led to **mass layoffs**:
- McKinsey has cut **5,000+ jobs** (~10% of workforce) in under two years.
- Layoffs attributed to:
- Post-pandemic right-sizing.
- Global consulting market slowdown.
- Tight client budgets.
- Impact of AI reducing need for junior roles.
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## AI Monetization Opportunities
Platforms like [AiToEarn官网](https://aitoearn.ai/) offer:
- **Open-source, global AI content monetization**.
- Multi-platform publishing (Douyin, Bilibili, LinkedIn, YouTube, X).
- Documentation at [AiToEarn文档](https://docs.aitoearn.ai/)
- Model ranking via [AI模型排名](https://rank.aitoearn.ai).
These ecosystems could become **strategic enablers** as consulting adapts to AI-driven workflows.
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## “Catfish” in Consulting Waters
The traditional synergy between tech and consulting is **being disrupted**:
### New Dynamics
- AI companies (OpenAI, Anthropic) offer direct enterprise solutions.
- Emergence of **consultancy tech startups** that automate core consulting tasks.
### Case Study: **Hasura’s PromptQL**
PromptQL provides:
- Customized AI analysts built from client data + large models.
- Continuous learning capabilities.
- $900/hour engineering support for AI-driven strategic consulting.
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## Funding Signals
Recent investment activity:
- **Parable** – $16.6M funding (employee time tracking AI).
- **Dialogue AI** – $6M funding (automated market research).
- **Xavier AI** – Seed stage (AI strategy consulting).
While small now, these startups are **eating into SMB-market share from second-tier consulting firms**.
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## The “Ship of Theseus” Transformation
Consulting is **replacing wooden planks (human consultants) with steel (AI systems)** — piece by piece.
McKinsey says:
> “AI takes over basic tasks. That doesn’t mean fewer consultants — just a shift to higher-value client work.”
But **entry-level hiring is plummeting**:
- June: Entry-level hires down **54% YoY**.
- AI is eroding the defensive moat around junior roles.
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## Tacit Knowledge: The Remaining Moat
AI still struggles to capture **tacit knowledge** — the insights born of human intuition and experience.
- Firms now prefer **experienced professionals** over fresh graduates.
- Economist **Brynjolfsson** warns junior jobs are at risk:
- AI can replace “book knowledge” roles.
- Employment rate for ages 22–25 down **13%**.
Seasoned professionals remain resilient; entry paths for juniors are **shrinking fast**.
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## New Career Paths in the AI Era
With the traditional ladder dismantled, professionals can:
- Leverage platforms like [AiToEarn官网](https://aitoearn.ai/) for AI-powered content monetization.
- Publish across **Douyin, Kwai, WeChat, Bilibili, Xiaohongshu, LinkedIn, YouTube, Instagram, X, Threads, Pinterest**.
- Track AI model rankings via [AI模型排名](https://rank.aitoearn.ai).
- Build portfolios and revenue streams outside traditional consulting.
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## Final Thought
The consulting industry’s **entry-level gateway is narrowing**, but as long as tacit knowledge retains its value, there’s still space for **human expertise** — now in combination with AI.
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**References:**
1. https://www.businessinsider.com/ai-consulting-startups-2025-10
2. https://www.businessinsider.com/bcg-head-of-people-ai-core-competencies-performance-evaluations-2025-9
3. https://www.linkedin.com/posts/mckinsey_were-honored-to-be-among-the-top-global-activity-7384392652550586368-o3Bx/
4. https://www.ft.com/content/68011c4a-8add-4ac5-b30b-b4127aee40ba?utm_source=chatgpt.com
5. https://digitaleconomy.stanford.edu/publications/canaries-in-the-coal-mine/
