McKinsey’s new AI hiring experiment puts pressure on the ‘up-or-out’ model

Core Insights - McKinsey & Company is integrating AI into its interview process for junior candidates, indicating a significant shift in consulting workflows due to AI adoption [1][2] - The pilot program involves candidates using McKinsey's AI tool, Lilli, during case interviews, which reflects the evolving role of AI in supporting junior consultants' tasks [3] Group 1: AI Integration in Consulting - The pilot program requires graduate candidates to utilize an AI assistant during interviews, showcasing the deepening role of AI in consulting [1][2] - Interviewers assess candidates on their ability to interact with the AI tool, evaluate its outputs, and apply findings to client scenarios, mirroring the actual work of junior consultants [3] Group 2: Impact on Career Progression - Consulting firms operate under an "up-or-out" model, where employees must advance within a specific timeframe or leave, which is now influenced by AI capabilities [4][5] - As AI takes over more analytical tasks traditionally performed by junior consultants, performance expectations may shift, potentially compressing promotion timelines and increasing pressure on early-career consultants [6] Group 3: Future of Consulting Workforce - Consultants who cannot adapt to AI-assisted workflows may exit the firm earlier than in the past, leading to a narrower base of the consulting pyramid as firms adjust hiring and evaluation standards [7]