Close Menu
    What's Hot

    Key Levels to Watch Now BTC Lost $78K

    September 10, 2026

    McKinsey AI Leader Explains How Its Managing Staff Token Spending

    September 10, 2026

    XRP Price Needs $1.50 Breakout Ahead of CLARITY Act Vote

    September 10, 2026
    Facebook X (Twitter) Instagram
    Hot Paths
    • Home
    • News
    • Politics
    • Money
    • Personal Finance
    • Business
    • Economy
    • Investing
    • Markets
      • Stocks
      • Futures & Commodities
      • Crypto
      • Forex
    • Technology
    Facebook X (Twitter) Instagram
    Hot Paths
    Home»Money»McKinsey AI Leader Explains How Its Managing Staff Token Spending
    Money

    McKinsey AI Leader Explains How Its Managing Staff Token Spending

    Press RoomBy Press RoomSeptember 10, 2026No Comments5 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Consulting firms moved quickly to make AI part of employees’ working lives. Now they are confronting the cost of using it at scale.

    One of McKinsey’s strategies for managing rising costs isn’t to cap consultants’ use of AI but to let them know when they’re using too much.

    The firm tracks consumption on a user-by-user basis and alerts its employees via email when their AI usage gets too high, said Debasish Patnaik, who leads QuantumBlack — McKinsey’s AI, data, and analytics group — in the UK. The alert system was introduced firmwide in the summer.

    “Similar to using mobile data on a work phone, we tell them this is how you could do things to make it more cost-effective for the firm,” said Patnaik.

    Companies that initially focused on encouraging AI experimentation are now confronting the cost of operating the technology at scale.

    The age of freewheeling AI token use came to an end earlier this year as LLM providers moved from subscriptions to consumption-based pricing models. Consulting firms and other enterprise users are now charged based on the number of tokens — the small chunks of text an AI model reads and produces — they use, rather than a flat access rate, making efficiency more important as usage grows.

    In September, OpenAI announced that its most prolific users of AI coding agents now consume more than $7,000 worth of tokens a day.

    McKinsey’s approach to managing that spending pressure rests on transparency and education, Patnaik said.

    By May 2026, the firm was processing about five trillion AI tokens a month, according to a company blog post. Consumption was highly concentrated: about 10% of users accounted for roughly 65% of the total, with consultants and software engineers among the heaviest users.

    Want more Business Insider in your news feed?

    Add BI in Google so our reporting is easier to find when you’re searching for what matters.


    Debasnish Pataik

    Debasish Patnaik is the leader of McKinsey’s QuantumBlack arm in the UK. 

    McKinsey



    The AI usage alerts aren’t intended to discourage employees from using AI, but to show them what they are consuming and help them complete the same work more efficiently.

    “We really believe in giving autonomy to the consultants,” said Patnaik.

    Ensuring they have the right education about how to use tools has been key for managing usage, he added, noting that McKinsey has already seen shifts in how employees use the tools since giving users more visibility into their AI habits.

    Beyond token alerts

    McKinsey’s internal AI spending has not yet reached a problem stage, Patnaik said.

    Most of the firm’s AI use is for personal productivity or to deliver engagement faster, both of which are cases where “the cost-benefit is still skewed towards the benefit side,” he said.

    Usage levels could be more “egregious” in another six months, but Patnaik said the firm had already implemented additional controls to manage usage in addition to alerts.

    Have a tip or story to share about working in consulting? Contact this reporter via email at pthompson@businessinsider.com or Signal at Polly_Thompson.89. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.

    An internal AI gateway optimizes requests before they reach model providers, while circuit breakers temporarily pause access around particularly high token usage while the firm assesses whether the usage is productive.

    Caching enables answers to repeated questions to be reused and pools consumption costs across the business rather than locking unused capacity into individual licenses.

    Other consulting firms are pursuing similar controls to manage AI spending.

    The Big Four firm EY has set up an “AI Value Realization Office” to manage AI spending and has installed an “invisible” router behind some specialized AI tools that directs employees to the model best suited to a task. EY told Business Insider that the router, alongside other governance measures, had reduced token consumption by 60% since April.

    In June, a senior software engineer at Deloitte US told Business Insider that the changes to GitHub’s pricing model are “already wreaking havoc” on expectations for work, with developers quickly burning through their new monthly quotas, which took effect that month.

    Taking the strategies to clients

    Patnaik’s role as leader of QuantumBlack in the UK primarily focuses on providing AI capabilities to McKinsey’s clients, rather than the firm’s internal use of AI. McKinsey established a formal practice this spring to advise clients on deploying AI cost-effectively.

    Patnaik’s broad advice for clients mirrors the firm’s internal approach.

    Over the last quarter, clients have increasingly realized there’s a “hidden cost that we haven’t completely thought through,” and executives are having to weigh AI’s potential competitive benefits against its return on investment, Patnaik said.

    Patnaik said companies should assess token cost per outcome rather than per employee. Simply optimizing for fewer tokens could discourage valuable use of AI.

    “What you don’t want is to take costs out here, but incur costs on the other side without knowing about it,” he said. For now, he added, there’s still value in encouraging adoption, rather than restricting it.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Press Room

    Related Posts

    The Boring Company Raises $3 Billion As Demand for Musk Inc Booms

    September 10, 2026

    Billionaire Funding SF’s Flock Cameras Gets Pushback From Gen Z Son

    September 10, 2026

    Americans Are Buying Real Estate in Paris and Moving There Permanently

    September 10, 2026
    Leave A Reply Cancel Reply

    LATEST NEWS

    Key Levels to Watch Now BTC Lost $78K

    September 10, 2026

    McKinsey AI Leader Explains How Its Managing Staff Token Spending

    September 10, 2026

    XRP Price Needs $1.50 Breakout Ahead of CLARITY Act Vote

    September 10, 2026

    The Boring Company Raises $3 Billion As Demand for Musk Inc Booms

    September 10, 2026
    POPULAR
    Business

    The Business of Formula One

    May 27, 2023
    Business

    Weddings and divorce: the scourge of investment returns

    May 27, 2023
    Business

    How F1 found a secret fuel to accelerate media rights growth

    May 27, 2023
    Advertisement
    Load WordPress Sites in as fast as 37ms!

    Archives

    • September 2026
    • August 2026
    • July 2026
    • June 2026
    • May 2026
    • April 2026
    • March 2026
    • February 2026
    • January 2026
    • December 2025
    • November 2025
    • October 2025
    • September 2025
    • August 2025
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • May 2023

    Categories

    • Business
    • Crypto
    • Economy
    • Forex
    • Futures & Commodities
    • Investing
    • Market Data
    • Money
    • News
    • Personal Finance
    • Politics
    • Stocks
    • Technology

    Your source for the serious news. This demo is crafted specifically to exhibit the use of the theme as a news site. Visit our main page for more demos.

    We're social. Connect with us:

    Facebook X (Twitter) Instagram Pinterest YouTube

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Buy Now
    © 2026 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.