Artificial intelligence is coming for the consultants. Inside McKinsey, 'this is existential.'

Companies pay dearly for McKinsey's human expertise, and for nearly a century they have had good reason: The elite firm's armies of consultants have helped generations of CEOs navigate the thorniest of challenges, synthesizing complex information and mapping out what to do next.

- Chip Cutter

Now McKinsey is trying to steer through its own existential transformation. Artificial intelligence can increasingly do the work done by the firm's highly paid consultants, often within minutes.

That reality is pushing the firm to rewire its business. AI is now a topic of conversation at every meeting of McKinsey's board, said Bob Sternfels, the firm's global managing partner. The technology is changing the ways McKinsey works with clients, how it hires and even what projects it takes on.

And McKinsey is rapidly deploying thousands of AI agents. Those bots now assist consultants in building PowerPoint decks, taking notes and summing up interviews and research documents for clients. The most-used bot is one that helps employees write in a classic "McKinsey tone of voice"—language the firm describes as sharp, concise and clear. Another popular agent checks the logic of a consultant's arguments, verifying the flow of reasoning makes sense.

Sternfels said he sees a day in the not-too-distant future when McKinsey has one AI agent for every human it employs.

"We're going to continue to hire, but we're also going to continue to build agents," he said.

Already, the shape of the company is shifting. The firm has reduced its head count from about 45,000 people in 2023 to 40,000 through layoffs and attrition, in part to correct for an aggressive pandemic hiring spree. It has since also rolled out roughly 12,000 AI agents.

"Do I think that this is existential for our profession? Yes, I do," said Kate Smaje, a senior partner Sternfels tapped to lead the firm's AI efforts earlier this year. But, "I think it's an existential good for us."