August 5, 2025
5 min read
Eric Hastings
McKinsey deploys 12,000 AI agents, cutting 5,000 jobs and driving 40% of revenue, as Musk highlights AI’s limits in consulting roles.
McKinsey’s AI Agents Slash 5,000 Jobs, Boost Revenue 40% – Musk Skeptical
Written by Eric Hastings Monday, August 4, 2025 McKinsey & Co. has undertaken a significant transformation by deploying 12,000 AI agents, fundamentally altering its operational structure and client service delivery. This strategic move aims to streamline processes, with AI agents now handling tasks ranging from data analysis to report drafting. The firm's objective is to achieve a one-to-one ratio of human consultants to AI agents, a vision that senior partner Kate Smaje describes as an "existential good" for the consulting industry, despite the profound implications for the profession. This aggressive integration of AI has already yielded tangible results, including a reduction of approximately 5,000 roles and a substantial boost in revenue, with AI now contributing 40% to McKinsey's top line. Projects that once required teams of 14 analysts are now being managed by as few as two or three humans augmented by AI. This efficiency drive signals a shift towards prioritizing outcomes over traditional, slide-heavy presentations. However, the deployment has not been met with universal acclaim. Elon Musk, CEO of Tesla and xAI, expressed skepticism, suggesting that consultants’ primary value often lies in validating pre-existing CEO decisions and serving as scapegoats. Musk's perspective, highlighted by Mint, points to the human element of validation and accountability in consulting, which AI may struggle to replicate. The broader consulting sector, including major players like Accenture and Deloitte, faces similar pressures to adapt. Reports from Hindustan Times indicate that Musk’s influence could extend to government operations, advocating for tech-driven efficiency. Meanwhile, ethical discussions surrounding AI's impact on wealth concentration and worker displacement continue, as explored by The New Yorker. McKinsey's strategy, which includes incentivizing partner compensation based on AI adoption, offers a potential blueprint for firms navigating this evolution. While AI excels at speed and scale, the enduring value of human judgment and interpersonal dynamics in strategic advisory roles remains a key consideration, as Musk's commentary suggests. McKinsey's forward-looking strategy involves balancing its human-AI workforce to focus on high-value outcomes, such as strategic risk identification, and redefining success metrics from billable hours to measurable impacts. This transformation underscores the evolving nature of professional services, where the synergy between AI efficiency and human expertise will be crucial for success.Source: Originally published at WebProNews on August 4, 2025.