This top consulting firm is using AI to revolutionize its business. I saw it in action.

McKinsey & Company has successfully deployed Lilli, an internal AI tool launched in July 2023, to enhance knowledge access and application for its consultants. This "orchestration layer" across 11 AI models integrates the firm's extensive internal data with public information, enabling rapid insights and saving the average consultant over one full day per week. Lilli's widespread adoption by two-thirds of employees monthly underscores AI's transformative potential for efficiency and competitive advantage in professional services, with McKinsey actively showcasing the tool to clients as a model for AI integration.

Analysis

McKinsey & Company's development and successful internal deployment of its proprietary generative AI platform, Lilli, serves as a significant case study for enterprise AI adoption in the professional services sector. Launched in July 2023, the tool has achieved high internal penetration, with two-thirds of employees using it monthly and over 40% using it weekly, demonstrating its utility. The platform's primary reported benefit is a substantial productivity gain, saving the average consultant over one full day of work per week by streamlining access to the firm's 65,000-document knowledge base and integrating it with public data. Technologically, Lilli is described as an "orchestration layer" leveraging 11 different AI models, capable of generating cited content, creating presentation slides, and suggesting subject matter experts. McKinsey's strategy of showcasing Lilli to clients indicates an intent to leverage this internal innovation as a competitive advantage and a model for future consulting engagements, positioning AI proficiency as a core business driver. Separately, a proposal for Mass General Brigham to offer primary care at CVS MinuteClinic locations, currently under state commission review, signals a continued push toward integrated healthcare delivery models, though it faces regulatory scrutiny.

Key Decisions for Investors

• The success of McKinsey's Lilli validates the productivity case for enterprise AI, so investors should scrutinize public consulting and professional services firms for their own AI integration strategies and adoption metrics, as this is becoming a key competitive differentiator.
• McKinsey's use of an "orchestration layer" for 11 AI models highlights a growing demand for the underlying technology; consider exposure to the 'picks and shovels' of AI, including cloud providers and companies specializing in enterprise-grade AI platforms.
• The proposal for a Mass General Brigham and CVS partnership, while still pending review, warrants monitoring for investors in the healthcare and retail sectors, as regulatory approval could accelerate the trend of primary care services moving into retail settings.