AI Shakes Up Consulting ChatGPT Named New Town Consultant
ChatGPT The New Consultant Amidst Industry Shakeups
Paytm founder and CEO Vijay Shekhar Sharma has commented on the changing landscape of global consultancy. He declared ChatGPT as the new consultant in town. This statement was a response to widespread layoffs at McKinsey and Company.
Sharma shared an excerpt of a Financial Times report on the social media platform X, previously known as Twitter. He wrote that there is a new consultant in town and identified this consultant as ChatGPT.
Understanding McKinseys Significant Workforce Reduction
The Financial Times article revealed that McKinsey has reduced its workforce by more than 5000 roles over the past 18 months. This figure represents over 10 percent of its staff, which was approximately 45000 employees at the end of 2023. This reduction is one of the largest rounds of layoffs in the almost century long history of the prestigious firm.
The job cuts are occurring due to a downturn in demand for consulting services after a hiring boom following the pandemic. They also coincide with a 1.6 billion dollar legal settlement related to McKinsey's advisory role to opioid manufacturers. The reductions have included 1400 back office employees and 400 tech specialists in 2023. Additionally, an intensified performance review process is reportedly pressuring underperforming consultants to leave the company.
AI Revolutionizing The Consulting Landscape
Sharma's post highlights a broader trend the increasing influence of generative AI, like ChatGPT from OpenAI, in transforming how consulting services are delivered. With automation becoming more embedded into business strategy and operations, many firms are rethinking traditional consulting models.
A recent McKinsey report estimated that generative AI could automate up to 30 percent of work hours globally by 2030. This estimate is prompting companies to shift towards AI driven advisory services.
The Evolving Role of Consultants in an AI Driven World
The impact of AI is already visible beyond McKinsey. In May 2025, PwC, reportedly the largest enterprise user of ChatGPT, also laid off 1500 employees. The company cited operational efficiency gains through AI adoption as the reason.
While some experts see AI as a threat to traditional white collar jobs, others argue it is merely speeding up inevitable changes. Instead of completely replacing consultants, AI is increasingly being integrated into hybrid models. In these models, AI handles data heavy analysis. This allows human consultants to focus on generating insights, developing strategy, and managing relationships.
Still, the layoffs at legacy firms like McKinsey indicate a major turning point in the sector. Sharma's remark captures what many in the industry are starting to accept the era of AI enhanced consulting is no longer a future possibility it is already here.
