Can Big Consulting Still Pass the VRIO Test in the Age of AI?

There’s been a lot of discussion lately about whether big consulting firms like McKinsey are losing their edge in the era of AI. Current and former McKinsey folks are quick to defend the firm’s relevance — essentially pushing back on the idea that AI makes them obsolete. As a strategy wonk (and boutique consultant myself), I couldn’t resist putting that claim to the test using a classic framework from Strategy 101: VRIO.

In plain language, VRIO asks four questions about a company’s “secret sauce”:

1)      Valuable – Does it actually help you win or solve real problems?

2)      Rare – Do only a few players have it, or does everyone have access?

3)      Inimitable – Is it hard for others to copy or substitute in a serious way?

4)      Organized – Is the company set up to fully leverage it and scale it?

If the answer is “yes” to all four, you’ve likely got something that can give you a durable edge. So, how does McKinsey’s consulting model stack up on VRIO in a world where AI is everywhere?

1. Valuable: Still yes, but not by default

Historically, McKinsey’s value came from things like:

• Access to elite talent

• Sophisticated frameworks and analyses

• Credibility with boards and governments

  
  

Today, thanks to AI, a big piece of that analytical value isn’t so special anymore. A smart prompt (plus your own internal talent) can now crank out:

• Market maps and competitive landscapes

• Industry trend analyses and summaries

• Strategy deck outlines with the usual “options” and recommendations

McKinsey can still add value, but a thick slide deck no longer carries automatic value. Clients won’t be wowed by analysis alone, because much of it can be generated quicker and cheaper with AI. More of the value now has to come from actually implementing changes, managing organizational change, and building trust – not just delivering analysis.

2. Rare: The thinking isn’t rare anymore

McKinsey’s core thinking is built on strategy and economics frameworks that have been standard for decades. Those same ideas are everywhere now – they’re taught in every MBA program, fill countless business books and case studies, and are baked into every major AI tool. Once ChatGPT (and other models) can surface the same handful of strategy frameworks in seconds, the “McKinsey way of thinking” stops being special.

What is still rare about McKinsey? A few things, like:

• Very senior-level access in governments and Fortune 500s

• The signaling power of the McKinsey brand (it still means something to many)

• A deep alumni network that opens doors

So yes, the McKinsey name and connections still carry some exclusivity. But the actual content of their thinking is no longer rare at all – everyone now has access to the same frameworks and data. The firm’s intellectual toolkit isn’t a unique asset in the age of ubiquitous AI knowledge.

3. Inimitable: The style is copyable, the relationships aren’t

McKinsey used to feel almost impossible to imitate. They had a distinct “machine” for producing polished strategies and slides. Today, however, the surface-level style is easy to copy:

• Slide formats, jargon, and storytelling techniques can be replicated by training AI (or by any ex-consultant with a YouTube channel teaching “how to build McKinsey slides”).

• Boutique firms and in-house strategy teams can now look and sound very “McKinsey-like” at a fraction of the cost.

What remains hard to imitate is the deeper stuff:

• Decades of reputation with certain top clients

• Embedded relationships at the highest levels of large organizations

• An internal culture that shapes how employees think and work (the famed “McKinsey training”)

In short, the superficial elements of McKinsey’s model can be cloned by others (often with help from AI). The deep social capital – the trust and access built over decades – is still unique. However, that deep advantage only matters in client segments that still value the traditional big-firm approach. Many newer clients might care more about results and speed than a legacy reputation.

4. Organized: Is McKinsey built to harness AI?

The last part of VRIO is often overlooked: even if you have valuable, rare, hard-to-copy resources, are you organized to fully use them in a changing environment? For McKinsey, this is the real pressure point. They need to ask themselves:

• Can a partner-led, high-fee, pyramid model work when AI takes over a big chunk of the grunt work junior consultants used to do?

• Can they redesign projects around AI tools without undermining their billable hours and revenue model?

• Can they shift from the mindset of “we have the answer” to “we’ll help you co-create the answer using your data, your people, and AI”?

McKinsey is investing heavily in AI (they’d be foolish not to), but there’s a built-in tension. The more they use AI to boost efficiency and reduce project timelines, the more clients will question paying McKinsey’s premium fees. If an AI-driven analysis takes 1/5th the time, will clients accept the same six- or seven-figure price tag? The firm’s organization and business model will have to adapt fundamentally to avoid pricing itself out of the market.

So, does McKinsey pass the VRIO test in the AI era?

Here’s the rough verdict:

• Valuable: Partly – McKinsey can be valuable, but not by default and not purely for analysis.

• Rare: The ideas and frameworks aren’t rare anymore; only the brand and high-level access are.

• Inimitable: The PowerPoint style and analyses are easy to imitate now; the long-built network and relationships are not.

• Organized: This is the big question mark. McKinsey’s traditional structure was built for a pre-AI world, and it’s unclear if they can fully reorganize for the new one.

In other words, AI has punched some serious holes in Big Consulting’s old VRIO story. The sustainable edge in consulting going forward won’t be “we have the proprietary framework or the smartest guys in the room.” The edge will come from things that AI can’t easily replicate, such as:

• Unique, human-centric problem solving models that aren’t already in the AI training data (truly fresh thinking tailored to each client).

• Deep, domain-specific expertise and local knowledge that give context to solutions (not just generic best practices).

• Real human relationships and trust, and the ability to guide organizations through the messy, human side of change.

  
  

Those are the kinds of advantages AI can’t copy – the kind rooted in human experience, creativity, and trust. And that’s exactly where smaller, more focused firms have an opportunity to shine. While the giants grapple with reinventing themselves, nimble boutiques (yes, like my own Value Engine LLC) can double down on the human touch, flexibility, and innovative thinking. In the age of AI, being big and old-fashioned is looking less like an advantage and more like a liability.

Bottom line: McKinsey’s not doomed, but the source of consulting value is shifting. If you’re choosing a consulting partner in 2025, it might be time to look beyond the old brand name and ask the VRIO questions yourself. You may find that a fresher, more agile approach wins the day.