AI Disrupts Consulting: McKinsey Faces Existential Challenge from Generative Tech

What Happened

According to The Wall Street Journal, consulting giant McKinsey is grappling with the rapid impact of generative AI on its traditional business model. Internal sources describe the challenge as \”existential,\” as automation and AI tools can now perform analysis, generate reports, and develop client-ready presentations that were once labor-intensive. This threatens McKinsey\’s high-margin advisory services and puts pressure on thousands of consultants worldwide. Top industry leaders are reevaluating firm strategies, investing in AI capabilities, and rethinking how consulting firms deliver value amid this technological shift.

Why It Matters

The growing adoption of generative AI could fundamentally reshape the consulting industry by automating routine tasks, changing client expectations, and reducing dependence on traditional consulting expertise. This disruption will force firms to innovate and find new business models to remain relevant.
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