Every law firm, accounting firm, and consultancy runs on a similar model. Hire a lot of smart young people, bill their hours at a markup, and promote the ones who last. That pyramid has been the most reliable money machine in professional services for a century. Now, artificial general intelligence (AGI) is going after the bottom layer. What is AGI, you ask? It helps to think about AGI as an employee rather than a tool. Today's AI is a great assistant. It drafts, researches, and summarizes, but it needs supervision, and someone has to check its work. AGI introduces a system that can do most of what a capable person does, for days at a stretch, without anyone looking over its shoulder. In an office, the first person it replaces is not the partner or the rainmaker, but the junior associate at the bottom of the pyramid, the one doing the research and the first drafts that firms have always billed for at a markup. McKinsey & Company, the privately held consulting firm that advises most of the world's largest companies, is already working this way. When asked how many people McKinsey employs, global managing partner Bob Sternfels told Harvard Business Review's IdeaCast in January that the answer was 60,000: 40,000 humans and 20,000 AI agents. McKinsey's human headcount has fallen from roughly 45,000 to 40,000 since 2023.
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