The Intelligence from The Economist Consultant management: McKinsey loses its shine
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Aug 5, 2025 
Tom Lee Devlin, Business Editor at The Economist, delves into the struggles of McKinsey & Company as AI and new competitors reshape the consulting landscape. He discusses the ethical dilemmas faced by traditional consultancies and how they can adapt. The podcast also touches on intriguing airline pricing disparities for solo travelers versus companions, and the rise of women's sports bars in America, celebrating female athletes and reflecting a cultural shift in sports engagement.
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McKinsey Faces Growth Challenges
- McKinsey's recent growth stalled due to challenges while rivals like BCG grew robustly.
- New competitors like Palantir with AI-focused consulting are reshaping the industry landscape.
AI Changes Consulting Dynamics
- New tech firms embed AI solutions directly with clients, competing with traditional consulting.
- This might push classic consultancies back to core strategic advising amidst AI disruptions.
AI May Compress Consulting Fees
- AI will automate grunt work in strategy projects, compressing fees for consultancies.
- McKinsey bets on intellectual property to protect business but faces big AI improvement risks.