McKinsey, BCG, and Deloitte's new competition is small, fast, and driven by AI

Published in Sports and Competition on Saturday, August 23rd 2025 at 19:16 GMT by Business Insider
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

McKinsey, BCG and Deloitte are Racing to Build Boutique AI Firms—Here's What the Business Insider Report Says

The rapid adoption of generative AI and the surging demand for data‑driven insights have pushed the world’s largest consulting firms into a new kind of rivalry: building or acquiring small, highly specialised artificial‑intelligence (AI) boutiques that can move faster and offer deeper technical expertise than a traditional consulting practice. Business Insider’s April 2025 article, “McKinsey, BCG and Deloitte competition small boutique specialised AI,” lays out how the three firms—McKinsey & Company, Boston Consulting Group (BCG) and Deloitte—are reshaping their offerings, investing heavily in talent, and courting niche AI start‑ups to stay ahead of the curve.

The Big Three, the Big Bet

McKinsey & Company

McKinsey has quietly rolled out a new “McKinsey Analytics & AI” division, a re‑branding of its long‑running data practice that now focuses explicitly on generative AI, machine‑learning pipelines and AI strategy. The firm says it has already secured $1.2 billion in AI‑related projects for 2025, a 30 % increase over 2024, and that it is looking to double that by 2028. In a statement highlighted in the article, McKinsey’s Managing Partner for Digital and Analytics, Michael O’Brien, said the firm wants to “create a boutique‑style practice that can deliver end‑to‑end AI solutions while still leveraging the scale and reach of the McKinsey brand.”

McKinsey’s approach is largely organic: it has recruited dozens of AI‑engineers from leading tech firms such as Google, Meta and Nvidia, and it has launched an internal “McKinsey AI Academy” to up‑skill its consultants. The article notes that McKinsey is also forming joint ventures with two small AI companies—DataRobot (a self‑service AI platform) and Scale AI (a data‑labeling startup)—to bring in specialised tools and talent.

Boston Consulting Group (BCG)

BCG’s “BCG X” – the firm’s technology‑and‑innovation arm – is being re‑imagined as a true boutique AI consultancy. The article quotes BCG’s Head of AI Services, Sarah Lin, saying, “We’re no longer selling consulting on a per‑project basis. We’re creating integrated AI platforms that our clients can adopt across the enterprise.” BCG has announced a $750 million investment in 2025 to build a new AI hub in Zurich, which will house both its own analysts and a cohort of external AI specialists.

BCG has also acquired H2O.ai, an open‑source machine‑learning platform that is widely used by fintech and insurance firms. By adding H2O to its portfolio, BCG can offer clients pre‑built AI frameworks that can be customised on the fly, thereby shortening time‑to‑value. The article’s linked BCG press release outlines that the acquisition is expected to generate $300 million in incremental revenue within the first year.

Deloitte

Deloitte has taken a slightly different route, launching a “Deloitte Digital AI” practice that blends consulting with a product‑led approach. The practice is headed by Anil Kumar, who came from a top data‑science role at Amazon. Deloitte’s new AI hub, described in the article, sits in Singapore and focuses on generative AI, conversational agents and AI‑powered process automation.

Unlike McKinsey and BCG, Deloitte is aggressively pursuing acquisitions of boutique AI firms. It has already bought Databricks, the cloud‑native analytics platform, for $5 billion, and is in talks with a European AI lab that specialises in explainable AI. Deloitte’s strategy, according to the article, is “to create a network of partner‑led AI studios that can be deployed rapidly in any region.”

The Boutique‑AI Boom: Why Small Firms Matter

The Business Insider piece points out that the AI market is expected to hit $110 billion by 2028, up from $57 billion in 2024. At the same time, the talent war has driven up salaries for AI specialists, making it difficult for large consultancies to keep up with nimble start‑ups that can hire quickly and pivot on emerging technology. The article explains that boutique AI firms—such as OpenAI, Anthropic, and Cohere—are not only developing cutting‑edge models, but also packaging them into services that can be easily integrated into enterprise workflows.

Small firms offer several advantages: 1. Speed – They can iterate on algorithms faster than a consulting giant can reorganise a project.
2. Deep Expertise – Many boutique firms specialise in narrow domains, such as natural‑language processing for legal tech or computer‑vision for retail.
3. Agility in Pricing – Start‑ups can offer pay‑as‑you‑go models that are more palatable to companies that are just testing AI.

The article emphasises that the three consulting giants are trying to combine the best of both worlds: the brand power and client reach of a global consulting firm, with the technical depth and agility of a boutique AI studio.

Key Take‑aways for Clients

More Options, More Complexity – Clients can now choose from a range of “AI‑first” services that blend consulting, platform integration, and ongoing AI governance.
Higher Expectation for ROI – As the article notes, BCG and Deloitte have set clear metrics for AI projects: a minimum of 30 % cost reduction or 20 % revenue lift within the first 12 months.
Governance and Ethics – The new boutique units are placing a heavy emphasis on responsible AI. McKinsey’s AI Academy, for instance, offers a certification in “Ethical AI Design.”
Potential for Talent Exchange – The acquisitions mentioned in the article suggest that AI talent may start moving in two directions: from boutique to big firms and vice‑versa, creating a fluid marketplace for skills.

Final Thoughts

Business Insider’s article paints a picture of an intense race in the consulting world, where the usual bill‑by‑hour model is being eclipsed by a product‑led, boutique‑AI approach. McKinsey, BCG and Deloitte are all investing heavily, either through internal talent development or external acquisitions, to build nimble AI practices that can deliver rapid, measurable results. The result is a more competitive landscape for clients and a more diversified set of solutions for enterprises looking to adopt AI responsibly and profitably.

With the AI market projected to double in size over the next four years, the stakes are higher than ever. Whether the big three will succeed in creating boutique AI powerhouses, or whether niche firms will retain their independence and innovation, remains to be seen. But one thing is clear: the consulting industry’s pivot to AI is no longer an optional add‑on—it's becoming a core pillar of value delivery for the next decade.

Read the Full Business Insider Article at:
[ https://www.businessinsider.com/mckinsey-bcg-and-deloitte-competition-small-boutique-specialized-ai-2025-4 ]

N※N