McKinsey’s global managing partner, Bob Sternfels, revealed that artificial intelligence is fundamentally transforming the firm’s workforce, driving both job reductions and strategic hiring in tandem. Speaking at the Consumer Electronics Show in Las Vegas during a live taping of the “All-In” podcast with Jason Calacanis and Hemant Taneja of General Catalyst, Sternfels shared concrete data on how AI is reshaping the consulting giant’s operations. He described a new operating model he called the "25 squared" approach. Under this strategy, McKinsey is increasing its client-facing roles—what most people imagine as traditional consultants—by 25%. At the same time, non-client-facing positions, which support the business behind the scenes, have been reduced by about 25%, even as output from that group has increased by 10%. “This is a new paradigm,” Sternfels said. “Our model used to be that growth required more people. Now, we can grow in one area and shrink in another, and still see overall growth. That’s a fundamental shift.” He attributed the change to significant productivity gains from AI adoption. Last year alone, AI saved the firm 1.5 million hours in tasks related to searching for information and synthesizing insights—work traditionally handled by junior staff. As a result, consultants are now focusing on higher-level, more complex challenges, effectively “moving up the stack.” AI is no longer just a tool—it’s becoming a core part of McKinsey’s workforce. Sternfels revealed that as of last week, the company employed 40,000 humans and 25,000 personalized AI agents. These agents function independently, capable of managing entire job functions. He expects the number of AI agents to match the number of human employees by the end of the year. For young professionals entering the workforce, Sternfels advised focusing on uniquely human skills—critical judgment, emotional intelligence, and genuine creativity—rather than tasks that can be automated. He emphasized that future success lies not in competing with AI, but in mastering collaboration with it. McKinsey’s transformation mirrors a broader trend across large, established organizations grappling with AI disruption. Sternfels stressed that survival now hinges on organizational agility. “You have a choice—transform or die,” he said. “Companies are moving at literally warp speed.” He noted that CEOs across industries are no longer debating strategy so much as asking how to accelerate their organizations. “It’s less about what to do and more about how fast you can do it,” he added.