McKinsey: Betting Billion-Dollar Bets on AI, But Collecting Checks Later

KEY POINTS

•McKinsey revealed at a November 2025 London event that outcome-based pricing now makes up about 25% of their fees.
•Michael Birshan highlighted that clients prefer paying for successful results rather than billable hours.
•Kate Smaje explained that multi-year, AI-focused projects drove this shift, emphasizing shared success on scorecards.
•EY's Raj Sharma said AI is also forcing his firm to rethink charging clients, moving toward service-as-software models.

In a dazzling act of corporate gymnastic agility, McKinsey & Company declared in November 2025 from foggy London that about a quarter of its global consulting fees now hinge on outcomes-based pricing. Michael Birshan, the managing partner attending this brave new economics premiere, admits clients prefer to pay for results, not just hours logged in conference rooms sweating over spreadsheets. Kate Smaje, McKinsey’s global technology and AI chief, explained how AI transformation work and long-term multi-year projects have convinced clients to gamble on McKinsey like a Vegas high roller, watching revenue, profit goals, and customer satisfaction numbers like a hawk. Their slogan now? 'We’re not a supplier, we’re a partner,' which suspiciously sounds like job security for consultants as AI redefines just about everything—except apparently their control over your boardroom scorecards. Meanwhile, EY’s Raj Sharma hints everyone will soon be renting consulting-as-a-software. So buckle up: consulting models are shifting like your GPS trying to avoid traffic, and McKinsey is at the wheel, occasionally glancing back and hoping you don’t notice them adjusting the map mid-drive.