McKinsey: AI, Consulting, and What the Hell They're Actually Doing

The Only Thing CFOs Are Protecting Is Their Own Ass

So, McKinsey & Company—yeah, those guys—are saying CFOs are getting all conservative with their budgeting. Big shocker. Apparently, disruption is the "top theme" affecting these finance wizards. Geopolitical uncertainty, AI budgeting headaches, and the whole "upskilling" song and dance. Give me a break.

What this really translates to is: "We have no freakin' clue what's going to happen next year, so let's hoard cash like a dragon sitting on a pile of gold." Protecting the downside? It's called CYA, people.

The Shutdown's Silver Lining?

And get this: the McKinsey exec, Kevin Carmody, actually brought up the government shutdown. As if that's the reason they're all panicking. Please. The government could be fully functional, and these guys would still be clutching their pearls about something. According to a CFO Dive article, CFOs are reaching for downside budget protections, McKinsey exec says.

Jefferson from the Fed saying they need to cast a wide net for info? Okay, that's just hilarious. They're admitting they're flying blind. It's not just the shutdown, it's the everything-is-a-dumpster-fire-all-the-time vibe we've got going on.

Here's the real deal: CFOs are scared. They're being "really careful" about spending, which means anything that isn't absolutely essential is getting the axe. "Nice-to-haves" are officially dead. It's all about what they must spend.

Realistic Stretch Targets? More Like Realistic BS

Carmody's talking about "realistic stretch targets." What a load of corporate-speak. It's all about lowering expectations so they can pat themselves on the back when they barely scrape by. Flattening the ramp curve for new products? Translation: "We're probably going to screw this up, so let's pretend we never aimed high in the first place."

But wait, are we really supposed to believe that estimating costs is "easier" than forecasting growth? Offcourse, they want us to think they have a handle on something. The truth is, nobody knows what costs are going to be next year with inflation still kicking around and supply chains still a mess.

And the budgeting process itself? He says it’s still happening in November. Even with all the fancy tech, they’re sticking to “static” budgets. Why? Because it gives them something to point to. A "stake in the ground," as Carmody puts it. As if a budget written in November is going to be worth anything by March.

But, hey, at least everyone's "rowing in the same direction," right? Towards the nearest iceberg, probably.

The AI Elephant in the Room

Let's not forget the elephant in the room – McKinsey AI. They're supposed to be the experts on all this AI stuff, helping companies navigate the future. So why are CFOs so freaked out about budgeting for it? Shouldn't McKinsey be selling them some magic solution?

Or is it because everyone's finally realizing that AI isn't a magic money tree? Maybe it's just another expensive toy that doesn't deliver on its promises. I mean, McKinsey's gotta be making bank off this AI hype, right? But are they actually helping anyone, or just selling snake oil?

So, What's the Real Story?

It's all a big, elaborate game of smoke and mirrors. CFOs are protecting their own necks, McKinsey is selling consulting services, and the rest of us are left to deal with the fallout. Ain't that always the way?