BCG's AI-Driven Surge Narrows Revenue Gap with McKinsey to $3 Billion

Boston Consulting Group (BCG) has significantly narrowed the revenue gap with its long-standing rival McKinsey & Company, with BCG's 2024 revenue reaching $13.5 billion against McKinsey's estimated $16 billion. This marks a substantial shift from 2014, when McKinsey's sales were double that of BCG, at $8 billion compared to $4 billion. The accelerated growth at BCG, described as "5x faster" in a recent tweet by Trung Phan, is largely attributed to its aggressive "all-in" strategy on artificial intelligence (AI).

BCG reported a 10% global revenue growth in 2024, climbing from $12.3 billion in 2023, marking its 21st consecutive year of growth. The firm's investment in AI has been a primary catalyst, with AI-related advisory services accounting for approximately 20% of its total revenue in 2024, and projections for this figure to grow significantly. This contrasts with McKinsey, which is estimated to derive 40% of its 2024 revenue from AI and tech advisory, contributing to its $16 billion.

The competitive landscape between the two consulting giants has intensified, particularly in the realm of AI. BCG has integrated ChatGPT Enterprise across its 33,000 employees and developed over 18,000 custom GPTs for internal operations, including tools like Deckster for slide creation and GENE for brainstorming. Meanwhile, McKinsey has been investing heavily in AI, deploying 12,000 AI agents and utilizing tools such as Lilli, a proprietary GPT trained on the firm's extensive knowledge base, and QuantumBlack Horizon Suite.

This strategic divergence extends to workforce management, with BCG's headcount surpassing McKinsey's. BCG now employs 37,000 people globally, driven by growth in tech consulting, data science, and digital transformation, particularly in markets like India. In contrast, McKinsey has reduced its global headcount by over 10% in the past 18 months, letting go of 5,000 employees as part of a restructuring plan to improve margins and adapt to AI-driven service delivery.

The shift reflects a broader trend in the consulting industry, where firms are increasingly focusing on technology and AI to drive revenue and maintain competitive advantage. As one source noted, "AI today is what digital was five years ago," indicating a new era of growth and strategic priorities for top-tier consulting firms. BCG's adaptability and quicker pivot into high-growth areas like AI are seen by experts as key factors in its recent rise.