As one of the leading global consulting firms, McKinsey Partners with Cohere to capitalize on the growing demand for AI technologies, following in the footsteps of other consulting firms that have entered the AI market.
The partnership between consultancy giant McKinsey and artificial intelligence startup Cohere marks a significant move by McKinsey to leverage AI solutions for its enterprise clients.
McKinsey’s decision to collaborate with Cohere represents its first partnership with a large language model provider, a move driven by the success and popularity of Microsoft-backed OpenAI’s ChatGPT.
According to Ben Ellencweig, senior partner at McKinsey, the firm’s clients are increasingly considering factors such as cost, intellectual property protection, consumer privacy, and the training methodologies of AI models. Cohere’s offerings stood out to McKinsey as a viable solution in these areas.
The main focus of the McKinsey partners with Cohere is to develop tailored AI solutions that enhance customer engagement and streamline workflow automation for clients. Additionally, McKinsey is exploring the possibility of leveraging Cohere’s technology to enhance its internal efficiency and power its knowledge management system.
While specific client names were not disclosed, McKinsey and Cohere highlighted their collaboration across various industries, including financial services and retail. By joining forces, the companies aim to provide enterprises with innovative generative AI solutions that are not tied to specific cloud providers, differentiating themselves from competitors like OpenAI.
Cohere, founded by former top AI researchers from Alphabet’s Google, has established itself as a neutral provider of AI models for enterprises. In a recent funding round, Cohere secured $270 million from investors such as Nvidia, Oracle, and Salesforce Ventures, reaching a valuation of $2.2 billion. The startup also formed a strategic partnership with Oracle, enabling the integration of Cohere’s generative AI technology into Oracle’s products.
This strategic collaboration between McKinsey and Cohere aligns with the latter’s vision to impact the world through enterprises and strong partnerships. Other consulting firms have taken similar steps to tap into the AI market, with Accenture committing $3 billion to AI investments and PwC planning to invest $1 billion over the next three years. Furthermore, Bain and Company have teamed up with OpenAI, while Deloitte has partnered with chipmaker Nvidia, indicating the broader trend of consulting firms embracing AI technologies to enhance their service offerings.