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The recent announcement by McKinsey & Company that it plans to cut roughly 10% of its workforce has sent ripples through the consulting world, reigniting debate about the future of the industry. This is not about one firm, one round of layoffs, or one business cycle. It signals an irreversible shift in how value is created in consulting.
Having spent a significant part of my career at McKinsey, I saw it grow and flourish in an era when information was scarce. Even basic market intelligence required large teams working for months to gather and synthesize data. The digital age brought a data explosion and democratized access, and McKinsey adapted again by expanding its capabilities into advanced analytics and technology-enabled transformation.
That advantage is now under pressure in the AI age.
The existential threat in the AI age
While the digital age reduced information asymmetry, the AI age goes further. It increasingly equalizes analytical and recommendation capabilities. Firms like McKinsey built a powerful competitive moat by hiring the best analytical minds from top universities—excelling at data synthesis, first-principles problem-solving, and translating insight into recommendations. In the AI age, however, that advantage is becoming commoditized.
This shift is part of a broader transformation of white-collar work. Contrary to early assumptions, AI is impacting knowledge work more than blue-collar roles. I expect that over the next five years, nearly 300 million white-collar jobs will be impacted globally, with around 100 million at risk of becoming obsolete. Work that is highly cognitive and already digitized is particularly susceptible.
Consulting sits squarely within this zone of disruption. As the traditional consulting model faces growing pressure, the premium for future talent will no longer rest on analytical horsepower alone.
The center of gravity has shifted: Consulting is being redefined
The need for consulting services is not disappearing, but the source of value is shifting decisively. Traditionally, firms like McKinsey, BCG, and Bain (MBB) sat at the top of the consulting value chain through high-value strategy work. Over the years, McKinsey has invested significantly in building technology and execution capabilities, but structural challenges remain. In contrast, execution-centric firms like Deloitte, EY, and Accenture, built with a different DNA, were able to more naturally combine advisory with technology and large-scale execution.
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