McKinsey Embraces AI-Driven Outcomes, Shifts to Performance-Based Pricing

As of November 2025, McKinsey & Company has been undergoing a significant shift in its consulting model, driven by the growing influence of AI and client demand for more complex, multi-year transformation projects. The firm's managing partner for the UK, Ireland, and Israel, Michael Birshan, revealed that McKinsey is now doing more "performance-based arrangements" with clients, where the fee is largely contingent on the outcomes the consultancy can deliver.

This shift in pricing has developed over the past several years, with about 25% of McKinsey's global fees now coming from this outcomes-based model. The change reflects the growing complexity of the work McKinsey is undertaking, as clients seek deep implementation expertise and multi-year, multidisciplinary support across their organizations.

According to Kate Smaje, McKinsey's global leader of technology and AI, the rise of AI is reshaping the nature of the firm's work, moving it beyond traditional strategy advice. Clients are now turning to McKinsey for "genuine partnership" in driving large-scale transformations, with the consultancy's scorecard aligned with the client's own success metrics.

This evolution in McKinsey's business model mirrors broader changes across the consulting industry, as AI disrupts talent strategies, organizational structures, and commercial models at leading firms. As the "fastest learners" adapt to this new landscape, McKinsey is positioning itself as a strategic partner, rather than a mere supplier or vendor, for clients undertaking complex, high-stakes initiatives.