McKinsey uses AI tool to make presentations, write proposals

McKinsey & Co. is using a proprietary generative AI platform named Lilli to enhance internal operations.

Introduced in 2023, Lilli is designed to streamline tasks such as drafting proposals and creating presentations.

Lilli integrates McKinsey’s knowledge base and features tools like “Tone of Voice” to ensure reports meet the desired tone.

The platform is named after Lillian Dombrowski, McKinsey’s first female professional hire in 1945.

According to Kate Smaje, McKinsey’s global technology and AI leader, over 75% of employees use Lilli each month.

While McKinsey employs third-party AI tools like OpenAI’s ChatGPT, client data usage is limited to its proprietary platform.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Consulting’s pyramidal business model faces structural disruption

McKinsey’s AI implementation highlights an industry-wide transformation that threatens a decades-old business model built on armies of junior consultants doing analytical groundwork.

Traditional consulting firms have operated on a pyramid structure where junior consultants perform time-intensive tasks like data analysis and presentation creation, with their billable hours supporting the firm’s profitability 1.

This apprenticeship model, where junior consultants gradually gain skills and experience, has been fundamental to talent development in the industry since McKinsey’s founding in 1926 2.

With AI automating core junior tasks, firms face a profound challenge: 86% of consulting buyers now actively seek services incorporating AI capabilities, forcing established firms to reconsider their operational structures 3.

Industry experts predict a significant decline in entry-level hiring over the next three years as AI systems like Lilli, BCG’s Deckster, and Bain’s Sage efficiently handle work that once required multiple junior consultants 2.

The staffing implications are already visible. McKinsey’s workforce has decreased from over 45,000 to approximately 40,000, signaling a potential shift away from the traditional leverage model that has defined consulting economics.