McKinsey’s AI ’Lilli’ Now Does Grunt Work So Overpaid Consultants Don’t Have To

Another day, another algorithm eating someone’s lunch. McKinsey’s new AI tool Lilli has officially graduated from PowerPoint tweaks to full-blown junior analyst replacement—because why train fresh MBAs when silicon can crunch numbers without complaining about bonus structures?

The bot now automates data synthesis, market sizing, and even draft-deck generation—tasks that used to justify those six-figure entry-level salaries. Early adopters report a 40% reduction in ’human error’ (read: midnight Excel meltdowns).

Of course, partners still charge clients the same hourly rate. Some things never change.

TLDRs:

• McKinsey’s AI assistant Lilli is now used by over 75% of employees, replacing many junior analyst tasks
• Lilli generates presentations, writes proposals, and surfaces expert knowledge, freeing up consultants
• McKinsey says the tool enhances productivity, not job cuts, but industry-wide entry-level hiring is dropping
• Experts warn rapid AI adoption could outpace society’s ability to adapt, risking future unemployment spikes

McKinsey & Company is rapidly redefining what it means to be a junior analyst. As per a study published on its website, the global consultancy has seen more than 72 percent of its 43,000 employees adopt its proprietary AI assistant, Lilli, on a regular basis. Designed as an internal productivity enhancer, Lilli has quietly taken over many of the routine tasks once assigned to entry-level employees.

Lilli Taking Over Junior Roles

Lilli, launched in 2023 and named after Lillian Dombrowski, the firm’s first female hire in 1945, has now become a Core part of McKinsey’s operational workflow. From drafting slide decks to assembling client proposals, the tool acts as a digital co-worker capable of transforming prompts into finished deliverables aligned with the firm’s internal standards. Unlike publicly available models, Lilli allows the secure use of confidential data and is trained on a century’s worth of McKinsey’s intellectual property.

According to internal data, consultants rely on Lilli approximately 17 times a week, using it to research market trends, identify experts within the firm, and structure client-ready documents. It’s not just about saving time, though estimates suggest it cuts information-synthesis time by 30 percent. It’s about unlocking new levels of precision and speed that even the most diligent analyst might struggle to match.

Despite this evolution, McKinsey’s leadership insists that Lilli is not replacing human employees. Kate Smaje, the firm’s global technology and AI leader, explained that while Lilli removes the need for an army of analysts to build PowerPoints, it shifts those analysts to more strategic, value-adding roles. The firm is positioning the tool not as a replacement, but as a force multiplier.

Ripple Effects Far Beyond McKinsey

Still, McKinsey’s AI embrace is not occurring in a vacuum. Across the consulting industry, firms are racing to implement similar AI tools. Boston Consulting Group uses a system called Deckster, while Bain & Company has tapped into OpenAI’s capabilities via Sage. Meanwhile, tech giants like IBM have used AI to eliminate hundreds of roles in HR alone. A trend is taking shape: AI is becoming the new entry-level worker.

This shift is already impacting hiring. SignalFire, a VC firm tracking global employment data, reported that recent graduates made up only seven percent of new tech hires in 2024 ,a steep drop from the previous year. With AI now capable of completing a growing share of cognitive tasks, the traditional onramp to white-collar careers is being disrupted.

Warnings From the Industry Itself

Even as firms embrace AI, leading voices in the tech world are sounding alarms. Lat Friday, Dario Amodei, CEO of AI company Anthropic, predicted that AI could eliminate up to half of all entry-level white-collar jobs within five years. He expressed concern that the pace of AI development may outstrip the workforce’s ability to adapt, risking a period of social and economic upheaval.

“Compared to previous technological changes, I’m a little bit worried about the labor impact simply because it’s happening so fast that… people may not adapt fast enough.” He told CNN.

That said, while some  like Nvidia CEO see this shift as an opportunity to drive prosperity and efficiency, others fear it may exacerbate inequality and weaken the social contract that binds democratic economies. If entry-level roles disappear faster than new career paths emerge, there could be consequences beyond the workplace.