This article first appeared on GuruFocus.

McKinsey & Co. just delivered a sharp reminder of where the industry might be heading, cutting about 200 global tech jobs in the past week as AI starts taking over tasks once handled manually. People familiar with the matter said more reductions across different functions could be possible over the next two years as the firm studies where automation can take hold. Inside the firm, the direction seems consistent: Global Managing Partner Bob Sternfels has been signaling that McKinsey wants to keep expanding client-facing talent while tightening headcount elsewhere, saying the non-client-deployed group will probably shrink over time as new AI tools begin to carry more weight.

Warning! GuruFocus has detected 3 Warning Sign with ACN.

Is ACN fairly valued? Test your thesis with our free DCF calculator.

That same pressure is creeping through the rest of the consulting world. Accenture (NYSE:ACN) told analysts in September that US federal spending cuts on consultants could slow its growth next year, even after topping fourth-quarter revenue expectations. The company is trimming staff who can't be retrained as it shifts toward more automated, AI-related worka pivot CEO Julie Sweet has been vocal about as the firm leans harder into agentic AI capabilities. For investors, the message could be that consulting's next growth chapter may hinge less on headcount and more on how quickly firms can scale automation across their service lines.

And the ripple effect doesn't stop there. Bloomberg Intelligence estimates global banks may cut as many as 200,000 jobs over the next three to five years as AI encroaches on processes historically handled by humans. Some executives, including JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon, have repeatedly talked about AI's potential upside even if it replaces roles along the way. Citigroup Inc. (NYSE:C) has previously estimated AI could add $170 billion to the banking industry by 2028, with 54% of roles holding high automation potential. The industry may not know the exact shape of what comes nextbut the early moves suggest a long runway of restructuring that could reshape how these firms compete, hire, and scale in an AI-first world.