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McKinsey’s AI Problem Isn’t Technology, It’s Pricing
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Subscribe26 MAY 2026 / TECHNOLOGY
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AI's ability to dramatically cut billable hours is changing the consulting industry, leading firms to shift from traditional hourly billing to outcome-based pricing. These changes, reflected in McKinsey's recent internal pay overhaul, "Project Acorn," have significant ramifications for professional service firms as automation is compressing billable time across sectors, requiring these firms to demonstrate value through results instead of effort.
The consulting world used to run on one simple equation: throw a room full of smart twenty-somethings at a client problem, bill by the hour, then arrive three weeks later with a 140-slide PowerPoint deck and a confident smile. That formula built McKinsey,...
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