00:00AI is really taking a bite out of consulting. Shocker. I can't believe that consulting is still as prominent and as huge of an industry as it is. But for the third year in a row, every single firm froze the salaries of the incoming classic McKinsey, Boston Consulting, and then some of those sort of second tier.
00:19You know, those guys, yeah, in my view, those guys lost their way, particularly coming out of the whole last 10, I would say, years when business went so totally woke. I mean, what they were essentially doing was consulting companies on how to create DEI, how to, like, implement ESG.
00:37How to spend more money.
00:38And how to spend money on this stuff. And now if you remember, McKinsey, I think, was famously put out a study that said why, I mean, it was sort of a half-ass, unscientific study, why diversity works. You know, they said, oh, look at all these companies that are diverse. Look at their stock price. I mean, these are all companies that work.
00:54I mean, you two, like, you had, like, a 22-year-old Harvard grad coming in and telling a major company what to do.
00:59I know.
01:00Preposterous.
01:01Well, that too. But just let me back up. The information they were imparting for so long was literally useless. It's the same argument that they tried to use at NASDAQ for their crazy rules on diversity on the boards. So this is what you got from the McKinseys of the world. If you're going to go there, just AI that. That's garbage. It's derivatives.
01:22Exactly. That's the thing, is companies are like, wait, we can do all of this literally with AI. So I think consulting's dead. And double that with, they also relied a lot on government contracts. And, of course, since Trump has come into office, Doge and whatnot have been trying to cut those contracts.
01:39Maybe they should say.
01:40It's like $65 billion, at least, from government contracts. That doesn't exist anymore.
01:44Maybe they should start consulting on stuff that matters.
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