AI is forcing McKinsey, BCG, Bain to rethink consulting fees
McKinsey, BCG, and Bain are shifting to outcome-based pricing and AI-driven efficiency, with McKinsey reporting 25% of global fees now tied to performance, while Bain invests in OpenAI for enterprise AI deployment. AI tools like McKinsey’s internal assistant Lilli are cutting consultant workloads by up to 30%, disrupting traditional billable-hour models across the industry.
McKinsey & Company, Boston Consulting Group (BCG), and Bain & Company are overhauling their consulting fee structures due to artificial intelligence’s impact on workflows. Traditionally, firms charged clients by the hour or fixed project fees based on team time, but AI tools are now compressing analytical work, making billable hours less sustainable. McKinsey’s UK managing partner, Michael Birshan, announced at a London event in November 2025 that 25% of global fees now come from outcome-based pricing, where clients pay for results rather than effort. The shift reflects internal AI adoption: McKinsey’s enterprise AI assistant, Lilli, processes over 500,000 prompts monthly, saving consultants up to 30% on knowledge work. This efficiency undermines the billable-hour model, framing it as a ‘tax on inefficiency.’ Bain has been the most transparent about AI’s role, partnering with OpenAI for three years and investing in its Deployment Company alongside TPG, Advent, Bain Capital, and Brookfield. The firm projects AI-enabled revenue will rise from 30% to 50% of its consulting business. BCG has also signaled AI’s growing influence, though specifics remain less detailed. The firms’ adaptations highlight a broader industry reckoning: as AI automates routine tasks, consulting value is recalibrated around strategic outcomes rather than labor hours. Clients increasingly demand measurable results, forcing firms to align pricing with deliverables—whether through AI-driven efficiency or performance guarantees. The transition isn’t just about cost; it’s a redefinition of consulting. Firms that once sold expertise by the hour now compete on AI integration, data-driven insights, and scalable solutions. For McKinsey, BCG, and Bain, the challenge is balancing innovation with profitability as AI reshapes their core business models.
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