McKinsey’s New AI Tool Will Disrupt The Industry

In a groundbreaking move, McKinsey & Company, the renowned consulting firm, is set to launch its in-house generative AI tool, Lilli, this fall. Named after the firm's first female employee, Lillian Dombrowski, who joined the ranks in 1945, Lilli is poised to revolutionize the way McKinsey leverages its extensive knowledge base.

Lilli stands as an interactive tool that grants staff access to insights gleaned from over 10,000 documents and archival data. An internal archival search feature and a ChatGPT-like chatbot will supplement this impressive repository of knowledge. The latter feature is designed to aggregate information from external sources, creating an innovative platform for user interaction.

Erik Roth, a senior partner at McKinsey, highlighted the transformative potential of Lilli, stating, "Lilli aggregates our knowledge and capabilities in one place for the first time and will allow us to spend more time with clients activating those insights and recommendations and maximizing the value we can create." This development signals a significant shift in how McKinsey envisions client engagement.

With 7,000 employees already granted access to the platform, Lilli has garnered impressive traction, having fielded over 50,000 user queries. The tool, much like ChatGPT, generates chronological chat logs with meticulously indicated sources in the postscript. This approach ensures transparency and accountability for the insights provided.

Jacky Wright, McKinsey’s senior partner and chief technology and platform officer, emphasized the broader implications of Lilli, stating, "This is the first of many use cases that will alter our organization." Lilli is poised to be a transformative force, providing the firm with the technological leverage to optimize productivity and enhance client service.

This development comes on the heels of McKinsey's strategic acquisition of Iguazo, an Israeli automation and machine learning startup, which now operates as QuantumBlack, its AI affiliate. The firm further solidified its AI capabilities through a strategic alliance with Cohere, a Canadian enterprise AI platform and large language model developer. In February, McKinsey introduced QuantumBlack in the Middle East, signaling its commitment to advancing AI-powered solutions on a global scale.

The broader consulting industry has also been quick to recognize the power of AI. PwC made a substantial $1 billion investment in a partnership with Microsoft and OpenAI, the founders of ChatGPT. Accenture, not to be outdone, committed to a $3 billion investment in its AI practice. IBM Consulting, in a bid to stay at the forefront of AI services, expanded its partnership with Microsoft.

As the consulting landscape continues to evolve, McKinsey's Lilli emerges as a game-changing tool that exemplifies the firm's dedication to leveraging cutting-edge technology for the benefit of its clients and the industry at large. With its potential to streamline processes and enhance client service, Lilli is poised to reshape the future of consulting.