AI is reshaping how McKinsey makes money

Core Insights - AI is reshaping consulting services and pricing models at McKinsey, with a shift towards performance-based arrangements [1][7] - Approximately 25% of McKinsey's global fees are now derived from outcomes-based pricing, reflecting a significant change in client expectations [2][7] - The transformation in pricing models has evolved over recent years, aligning with the increasing demand for multi-year, multidisciplinary projects [3][4] Pricing Model Changes - Clients are now focused on desired outcomes rather than project scope, leading to fees being contingent on performance [2][4] - Fixed cost components still exist, but the emphasis is on shared success metrics between McKinsey and its clients [4][5] - The proportion of fees from outcomes-based pricing has increased, with expectations for further growth in the coming years [3][6] Nature of Consulting Work - The nature of consulting work is evolving, with less than 20% of McKinsey's projects focused solely on strategy advice [6] - Clients are increasingly seeking deep implementation expertise and support for complex, multi-year transformation initiatives [6][7] - AI is influencing the types of services clients require, prompting McKinsey to rethink its approach to consulting [5][6]