Valuetainment - ＂Removing The Gatekeepers＂ - Is AI DESTROYING McKinsey’s Consulting Dominance？

00:00:00.040 Okay, when I sell my business, I want the best tax and investment advice.

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00:00:26.440 Find your advisor at igprivatewealth.com.

00:00:30.000 So how AI is forcing McKinsey and its peers to rethink pricing.

00:00:36.180 How AI is forcing McKinsey to rethink pricing.

00:00:40.840 Okay, so what are we talking about here?

00:00:44.180 It is impolite to think management consultants as comparable to call center bots,

00:00:49.860 but remuneration changes at the top of McKinsey and Company shows that it comes to billing.

00:00:58.400 the two are becoming more aligned.

00:01:00.180 McKinsey is under pressure from clients to tie its fees to outcomes achieved.

00:01:04.460 Wait, what?

00:01:05.300 Exactly.

00:01:05.660 Such as lower costs, higher profits, or increased market share,

00:01:08.980 rather than to the hours its consultants send concoding advice designed to achieve those ends.

00:01:15.600 Charging for results delivered rather than work done makes revenue less reliable,

00:01:20.460 which helps explain why firms will shunt a bigger share of partners,

00:01:24.020 pay into equity, and husband more cash.

00:01:26.600 The drive to tie fees to outcomes partly reflects the way billable hours are becoming less useful as a yardstick thanks to consultants' own usage of AI for tasks.

00:01:37.660 Other AI-exposed professional services such as lawyers and auditors have also come under pressure to pass their savings as well.

00:01:45.160 So, Tom, why is this such a big deal?

00:01:47.000 Because Jamie Dimon also came out in the same article on the same day and says,

00:01:52.080 J.P. Morgan will hire more AI brainiacs and fewer bankers.

00:01:56.300 Rob, if you want to play this clip, go forward.

00:01:59.320 Will it change the structure of jobs?

00:02:01.340 Yes.

00:02:02.660 I think there have been very few announcements that are AI related.

00:02:05.520 I think a lot of companies have too much bureaucracy and they may use AI to cover up the fact that they should never hire them in the first place.

00:02:11.680 But AI is going to change jobs.

00:02:13.620 I don't know.

00:02:14.580 I think it will reduce some of our jobs down the road.

00:02:16.800 I don't think it'll be all different types of jobs and you have to deploy it at a level like I think we'll be hiring more AI people and probably less bankers in certain categories.

00:02:26.900 And it'll make them more productive. So when you get up in the morning and you want to interview someone, it'll lay out what I've said in 14 different places.

00:02:34.200 It'll give you questions. Your job will be the same. You'll just be much smarter at how you execute that job.

00:02:39.460 And by the way, the Goldman Sachs chief operating officer, John Waldron, is building what he calls a digital factory floor.

00:02:46.460 He told CNBC that the bank is using AI to automate repetitive and behind-the-scenes chores of finance.

00:02:54.240 He likened the shift to physical robots assembling cars by letting software run what was previously human assembly line.

00:03:00.560 Goldman employees can spend more time face-to-face with customers.

00:03:03.680 Tom, thoughts on this?

00:03:05.080 This is exactly what's happening.

00:03:07.600 When you are billable hours, right, then you're saying that the gate to getting knowledge is time.

00:03:15.720 So I'm going to – I'm your lawyer, Vinny.

00:03:18.020 I mean, you were around lawyers that were in Los Angeles that knew the agents, that knew the opportunities, that knew the laws, knew labor laws.

00:03:27.120 You had to go to them, and they would then charge you one hour of time to give an answer that they gave to 20 other comedians who had a contract to do this or that, right?

00:03:37.520 And you're like, wait a minute.

00:03:38.740 Where's the efficiency in that?

00:03:40.340 Well, they're a gatekeeper to the knowledge and the answer.

00:03:43.540 Well, guess what's happening now? Now it's getting easier to find the knowledge and you need people that know how to manage it. And they're the gatekeepers to strategy. And so what's happening here is you've got clients that are asking McKinsey, hey, what if you pay for results? Rather than charging me for 50 hours of work for two associates to put together a PowerPoint, maybe I pay you some sort of fee for that.

00:04:09.840 But then I got an idea.

00:04:13.260 I'll pay you if I'm successful.

00:04:14.840 I'll pay you if it worked.

00:04:16.660 Now, people say, well, wait a minute, wait a minute.

00:04:18.660 That's like a doctor.

00:04:19.560 A doctor doesn't know if you're going to get better.

00:04:21.440 I mean, he's going to tell you what to do, but you got to go home from, you know, some sort of injury and you got to do your therapy.

00:04:27.940 You got to make sure that you don't, you know, go weightlifting too soon.

00:04:32.100 I can't control you.

00:04:33.380 I can give you the prescription.

00:04:34.720 It's not about results.

00:04:35.840 Yeah, but these business people are saying, well, then let's find a way to make a blend here because you're charging me an awful lot of money.

00:04:43.720 Is this kind of like a hedge fund model?

00:04:45.600 No, it's more like it's like I don't want to pay McKinsey all this money for a 300-page PowerPoint telling me what to do.

00:04:55.180 I'd rather talk to operators and people that can get results.

00:04:57.800 No, but the part where they basically say they want to get a percentage of the upside, that whole portion.

00:05:03.520 That some of it's going to go to equity.

00:05:05.560 And by the way, if the compensation goes to equity, what is the only way to raise the profit of the company?

00:05:12.940 To operate more profitably.

00:05:16.160 And if the clients are saying, I'm not going to pay you bulk hours.

00:05:19.300 I'll pay you for results.

00:05:20.600 Then the path to profitability is actually to give advice that works.

00:05:25.640 So there you have it.

00:05:27.240 I'll give you a quick.

00:05:28.640 We just helped somebody at David Consulting last week.

00:05:32.640 They said, hey, how can I use AI for this or this?

00:05:35.440 We said, hey, look, AI will solve chores for you.

00:05:38.280 It'll help process this faster.

00:05:40.260 And this guy has to answer bids from the county and the state.

00:05:45.580 And I'm not going to mention where or what it was, but he said, how can I use it?

00:05:49.080 And we helped him take perplexity and read the newspapers and give him once a week the list of new bids.

00:05:57.820 And he said, you just saved me three hours when, listen to what Pat read in this article, now I can go in front of those people and present myself and my company and make the relationship because I didn't spend three hours just searching through for where are the new bids.

00:06:14.720 Perplexity does the chore.

00:06:16.200 Hey, here's the new bids this week.

00:06:17.680 Oh, great.

00:06:18.180 I'm going to go that one, that one.

00:06:19.320 He says, I have two more meetings this week, and I saved three hours.

00:06:22.520 Bingo.

00:06:23.360 That's how AI.

00:06:24.720 And so it's coming.

00:06:26.320 And McKinsey, you know what?

00:06:28.740 McKinsey and big-time law firms, old model.

00:06:32.460 I've got a completely different perspective, not necessarily on the McKinsey,

00:06:35.100 but back to the college thing, and it's basically how fast things are changing.

00:06:38.520 But some things will stay the same.

00:06:39.860 We talked, I believe, on Friday about a return to humanity, right?

00:06:44.480 So right now it's college graduation season.

00:06:47.080 So respect to you, class of 2026.

00:06:50.400 You're graduating at an interesting time of life

00:06:52.580 where ai is now the biggest culprit and being booed more than anything but young people who

00:06:58.000 are graduating college are using ai more than anybody so riddle me that but i was actually

00:07:03.380 remember our old friend john stossley did this this expose on is college even worth it anymore

00:07:08.280 and he cites this book called uh the case against education basically saying that it

00:07:12.660 is it a waste of time and money and one of the uh data pieces that they found out was that

00:07:18.100 students go to college and after four years 45 percent of students show no significant improvement

00:07:25.180 in knowledge and in wisdom because we know that education a lot of times does not equal wisdom

00:07:32.340 or actual real life knowledge and then if you if you just want to go more stats more uh tom type

00:07:38.100 stuff unemployment rate is 4.3 percent right now college graduates are almost six percent so they

00:07:44.060 also said that college graduates are 25 percent uh less likely to be employed than the average

00:07:51.980 american worker but here's some good news here's what i think you know what's the biggest knock on

00:07:57.100 college other than debt other than debt why do they say go to college because all you do is party

00:08:02.560 you know all it is is uh you're going for the uh what do they call it the college experience

00:08:07.580 but i'll tell you what maybe what if that's a good thing at this point because what's happening 0.77

00:08:12.860 with college what's happening with mbas is they're being commoditized hey listen why do you need to

00:08:17.260 go to school and spend a quarter million dollars when you can just chat gpt all your knowledge 0.60

00:08:22.700 because no we're no longer living in the information uh phase of life information age

00:08:28.200 we're in the validation phase as long as you understand what the truth is then you'll be okay

00:08:32.520 but here's what i think and they said this in this jamie diamond article he said uh employees

00:08:38.280 who were previously using doing the human assembly line,

00:08:44.700 Goldman Sachs employees,

00:08:46.340 will now spend more time face-to-face with the customer.

00:08:50.700 So what does that mean?

00:08:51.860 Maybe, just maybe, all your partying in college,

00:08:55.180 all the cool guy stuff you were doing,

00:08:57.080 extracurricular activities,

00:08:58.640 maybe that is what might make you more valuable

00:09:01.840 to a company and to an organization

00:09:04.080 other than your just random degree that you got.

00:09:07.080 So could it be that the college experience, not the debt and the wisdom that you thought you were getting, interacting with, as you call it, social capital, interacting with people, that might be your best bet.

00:09:17.700 You're saying that.

00:09:20.020 Corporations disagree with you.

00:09:22.540 Corporations are saying that's not what they're hiring for.

00:09:25.360 If you read that article a little bit deeper, it'll tell you how Google, Facebook, Meta, and Amazon, they're no longer hiring for that.

00:09:36.000 They don't value that the way they did maybe before.

00:09:39.220 Well, those are all tech companies, right?

00:09:40.740 But I'll tell you a few things on the consulting side,

00:09:42.960 on why the traditional consulting side is dead, but they'll figure it out.

00:09:48.320 McKinsey's going to figure it out.

00:09:49.580 McKinsey came out, you know, their legacy is with James McKinsey and Marvin Bauer.

00:09:54.360 These guys have solved a lot of big problems.

00:09:56.760 What I will tell you, the market's going to go through as well as the final one.

00:10:00.200 When I talk to somebody who has given me advice on life, okay,

00:10:05.660 And here's what I think you should do with your six-pack to get a six-pack.

00:10:09.060 First thing I want to do is what?

00:10:10.080 Pull up your shirt.

00:10:11.680 I'm not taking advice from you on six-pack.

00:10:15.760 Here's the advice on how to create wealth.

00:10:17.980 Okay, show me how much my – a guy comes to me at this daddy-daughter dance,

00:10:22.320 and this guy's like, you know, I want to –

00:10:24.700 why are you having such a hard time hiring 150 people in your company?

00:10:29.120 I said, what do you mean?

00:10:30.480 I said, I need 150 people in the next 90 days.

00:10:33.220 And he says, you probably don't have the right HR team.

00:10:36.320 And this is when I'm like, I'm done with this guy just talking.

00:10:38.200 He's one of the guys that always comes up.

00:10:39.380 He just wants to talk.

00:10:40.020 He says, you should hire me as a consulting firm.

00:10:42.280 I said, really?

00:10:42.840 Yeah.

00:10:43.280 I said, tell me, what's the most employees you ever hired?

00:10:46.820 What's your biggest team you ever had that you hired?

00:10:48.540 Oh, 20 people.

00:10:50.200 Really?

00:10:50.740 Yeah.

00:10:50.940 I said, okay.

00:10:52.000 How big is your consultant?

00:10:53.400 Why don't you share with me what your dollars are last year?

00:10:55.400 What was your revenue last year?

00:10:57.160 That's private.

00:10:58.080 No, it's not.

00:10:59.080 I said, McKinsey's willing to share what they did last year.

00:11:01.360 It's public.

00:11:02.600 I said, you're so good at what you do?

00:11:04.380 Tell me your numbers.

00:11:05.680 The more the conversation went, I said, buddy,

00:11:07.380 I don't want to have this conversation with you right now.

00:11:09.000 You know a card he pulled on me?

00:11:10.780 He says, we're two Christian men.

00:11:12.120 Let's try to solve this together.

00:11:13.340 I said, buddy, this is not about that.

00:11:15.120 I'm like, I just don't want to talk to you right now

00:11:17.440 about the advice you're giving me.

00:11:18.340 About the dance.

00:11:19.140 But if you're somebody that built something you sold,

00:11:22.280 if you're somebody that built a podcast,

00:11:24.800 you built a, like, Vinny, congratulations to Viteam and Comedy,

00:11:27.860 just crossed a million subs, right?

00:11:30.140 Thank you.

00:11:30.640 Very big deal, right?

00:11:31.700 You're somebody that taught in schools and universities and you did good for yourself.

00:11:38.660 You're somebody that if you have moral authority, people want to pay for that.

00:11:42.940 That's why I think this system isn't working because people want to talk to expert operators.

00:11:47.960 They don't want to just talk to somebody that's just like, hey, I got an MBA.

00:11:51.300 Let me tell you what you need to do with your business.

00:11:53.080 Like, no, have you ever built something?

00:11:54.660 Have you ever sold something?

00:11:55.780 So I think the consulting challenge is going to be who's giving the advice and what type of success have they had in their lives.

00:12:04.020 I think that's the challenge.

00:12:05.220 We officially have our speakers for the vault conference finalized.

00:12:08.940 And I waited to the last one.

00:12:10.780 And the last one, I literally got the confirmation last night at 8 p.m., 7 p.m.-ish when I got the texts that were done, done.

00:12:18.420 And I wanted to make sure we put an event together where we talk about everything that's going on with AI.

00:12:24.060 The good, bad, the ugly, and how to leverage it.

00:12:26.220 One of the biggest names on AI we're bringing,

00:12:28.580 are you going to know who he is?

00:12:29.540 Many of you will.

00:12:30.620 I wanted to talk about the importance of having running mates

00:12:33.900 because for me, winning at the highest level, you need a running mate.

00:12:37.220 Tom is a running mate.

00:12:38.240 You go faster when you find your running mate.

00:12:40.760 So I brought two people that ran together

00:12:43.820 and won multiple championships together,

00:12:46.000 and then I wanted to bring somebody that your sons,

00:12:48.180 a lot of you guys are bringing their sons and their kids on social media

00:12:50.840 to be able to know how to build a brand.

00:12:52.520 Maybe the guy that was able to do this at the highest level and who is one of the biggest names right on social media, who's very successful, made a lot of money as well.

00:13:01.080 And last but not least, one of the biggest podcasters in the world who does it in a way that's very different than everybody else.

00:13:08.200 And he's killing it. He's got almost 20 million subscribers on his YouTube channel.

00:13:11.760 With that being said, these are the speakers at the Vol Conference 2026 MGM Grand Arena.

00:13:17.000 Go ahead, Rob.

00:13:17.500 the beautiful thing about these events

00:13:23.060 you know how quickly it goes

00:13:27.440 like this

00:13:30.260 is everybody ready to get started

00:13:34.460 i've helped over 10 000 business owners grow and scale their companies i'm just passionate

00:13:41.800 about watching entrepreneurs create great business

00:13:44.500 had many you get guys like jerry rice that was his work ethic we were able to do some great things

00:13:51.380 on the football field wow the single most important trait i had was a healthy dose of

00:13:55.860 delusion stephen bartlett and i illusion is sometimes referred to a self-belief coming

00:14:00.660 from uk when i can do something that i love that is good and i can get content out of

00:14:07.460 That's sick.

00:14:08.240 That's my trifecta.

00:14:11.560 That's so cool.

00:14:12.620 That's a great lineup.

00:14:14.160 Good for you, Logan.

00:14:14.960 It's a phenomenal, phenomenal lineup.

00:14:19.680 Vault Conference, MGM Grand Arena.

00:14:22.760 If you haven't yet registered, listen, CO tickets, which there's only 500 of,

00:14:27.560 less than 100 left, go to vault2026.com, vault2026.com.

00:14:34.220 Get your tickets.

00:14:34.900 It's we have companies that are bringing one company from France is bringing 500 of their sales reps from France.

00:14:41.620 Did you hear what I just said?

00:14:42.540 Oui, oui.

00:14:42.920 From France.

00:14:43.480 Oui, oui.

00:14:43.960 Yes.

00:14:45.100 So some of you guys are on the sales team.

00:14:47.180 You have your executive team.

00:14:48.240 A lot of guys bring their family, their partners.

00:14:50.460 And also with some of you that want to have your kids learning on how to create content the way that Logan and Jake Paul have.

00:14:58.200 And they became who they are today with their businesses.

00:15:00.400 You may want to bring your kids as well.

00:15:01.940 So go to vault2026.com.

00:15:03.700 Get registered.

00:15:04.960 We cannot wait to see you.

00:15:06.860 It'll be the greatest Vol Conference we've ever had.

00:15:09.600 Cannot wait to see everybody there.

00:15:10.800 Okay.

00:15:11.060 If you enjoyed this video, you want to watch more videos like this, click here.

00:15:13.720 And if you want to watch the entire podcast, click here.

Valuetainment - May 29, 2026

＂Removing The Gatekeepers＂ - Is AI DESTROYING McKinsey’s Consulting Dominance？

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