Another Crazy Day in AI: How McKinsey Plans to Survive the Consulting Shake-Up
- Feb 10
- 3 min read
Hello, AI Enthusiasts.
Here's another crazy day in AI:
Why McKinsey is hiring for resilience over pedigree
Developing good judgment when AI does the first draft
Vermont issues AI use guidelines for schools
Some AI tools to try out
🎧 Listen to a quick breakdown of today’s stories.
TODAY'S FEATURED ITEM: What's Next for McKinsey and Consulting
Image Credit: Wowza (created with Ideogram)
What does it look like when a century-old consulting firm has to rethink how it works, who it hires, and what clients are actually paying for?
In a recent episode of Harvard Business Review’s HBR IdeaCast, McKinsey Global Managing Partner Bob Sternfels sits down with host Adi Ignatius for an unusually candid conversation about what is going on inside the firm. They touch on everything from recent controversies that prompted some tough internal reflection to how McKinsey is weaving AI into both client work and its own day-to-day operations. Along the way, Sternfels shares how large consulting firms are adjusting to rapid technological change, increased public scrutiny, and shifting client expectations, including rethinking the kind of talent they need and experimenting with fee models that are more closely tied to real business results rather than advice alone.
What was discussed:
McKinsey has gone from using 3,000 AI agents to 20,000 in about 18 months and is aiming for roughly one agent per human consultant
The firm is testing models where it gets paid based on outcomes rather than just billing for advice and recommendations
When hiring, McKinsey is looking more closely at traits like resilience and how well people work with others, not just academic credentials
Sternfels points out that most companies struggle with AI because they need to redesign how work actually flows, not just plug in new tools
After facing criticism over some client relationships, McKinsey brought in outside compliance experts and tightened up how it decides which projects to take on
As companies get better at handling routine problems internally, consulting firms are being pushed toward more complex, higher-stakes work
Leaders today are trying to manage competing demands—driving innovation while also making their organizations resilient enough to handle constant disruptions
Sternfels addresses McKinsey’s missteps head-on and shares how the firm has responded. What stands out is how many of the challenges he describes extend well beyond consulting. Questions about integrating new technologies, redefining which skills matter, choosing what work to take on, and rethinking how value is priced are becoming increasingly common across industries.
Perhaps most interesting is the tension that runs through the conversation. How do organizations balance innovation with stability, adapt long-standing practices to modern demands, and maintain trust while changing how value is created and measured? Whether you are in consulting or not, these are challenges that likely feel familiar.
Watch the conversation here.
OTHER INTERESTING AI HIGHLIGHTS:
Developing Good Judgment When AI Does the First Draft
/David S. Duncan, WSJ Bestselling Author, Senior Partner at Disruptive Edge, on Harvard Business Review
AI tools are speeding up work, but they’re also changing how people build judgment — especially for newer employees. Experienced professionals often get more value from AI because they can evaluate and steer outputs, while juniors may struggle to tell what’s good or flawed. That shift could quietly weaken leadership pipelines if organizations don’t rethink how learning and responsibility are built into roles. The piece outlines practical ways companies can redesign work so judgment still develops, even when AI handles more of the basics.
Read more here.
Vermont Issues AI Use Guidelines for Schools
/Lucy Caile, Multimedia Journalist, on WCAX
Vermont’s Agency of Education has issued new AI guidelines to help schools use the technology in a more deliberate and responsible way. The framework recognizes that AI is already present in classrooms and focuses on balanced use rather than avoidance or over-dependence. Recommendations are organized by grade level and highlight both benefits and risks for student learning. Educators say the guidance is a practical first step toward aligning school practices with how technology is already shaping students’ lives.
Check it out here.
SOME AI TOOLS TO TRY OUT:
Neatscribe – AI transcription tool for fast, accurate audio and video to text.
Phia – AI shopping agent that finds the best prices and secondhand deals.
BayesLab – AI data analyst that turns raw data into reports and charts.
That’s a wrap on today’s Almost Daily craziness.
Catch us almost every day—almost! 😉
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