GPT-4 Can Solve McKinsey Case Studies

It’s already abundantly clear that AI will be coming for the jobs of programmers and artists, but even consultants aren’t safe.

GPT-4 can solve McKinsey case studies, a Wharton professor has found. Wharton’s Ethan Mollick tried getting GPT-4 to solve McKinsey’s practice cases. “As an experiment, I fed GPT-4 the official practice McKinsey cases, including the math. It nails it, often better than the official answer,” he wrote on Twitter.

This was the McKinsey practice case:

Question 1:
Beautify is excited to support its current staff of beauty consultants on the journey to becoming virtual social media-beauty advisors. Consultants would still lead the way in terms of direct consumer engagement and would be expected to maintain and grow a group of clients. They would sell products through their own pages on beautify.com, make appearances at major retail outlets, and be active on all social media platforms.
What possible factors should Beautify consider when shifting this group of employees toward a new set of responsibilities?

Helpful hints
• Take time to organize your thoughts before answering. This will help show your interviewer that you have a logical approach and can think in an organized way, regardless of the accuracy of the outcome. • Develop an overall approach before diving into details.

And this was McKinsey’s answer on its website:

Some of the factors you might discuss with your interviewer could include:
Retailer response. How will retailers respond to consumers buying directly from beautify.com? What kinds of financial arrangements will Beautify have to work out with its retail partners?

Competitor response. Do other beauty companies offer virtual assistants? If yes, how successful are they? If no, do they have plans to digitize the personal selling experience?

Current capabilities. What is the current skill set of beauty consultants regarding social media? How many already have an online presence, for example, those with more professional accounts on social media platforms or a personal beauty or skincare blog? Would it be possible to hire new advisors with these marketing skills?

Brand image. What are the implications for Beautify’s brand if hundreds of advisors suddenly start posting about its products? How could this be leveraged to make Beautify seem more attractive as an employer in the market?

GPT-4, meanwhile, provided this answer:

When shifting beauty consultants toward new responsibilities as virtual social media-beauty advisors, Beautify should consider the following factors:

  1. Training and skill development Beauty consultants may require additional training in social media management, content creation, and digital marketing strategies to effectively engage and grow their online customer base.
  2. Technology and infrastructure: Beautify should ensure that beauty consultants have access to the necessary technology, tools, and resources to efficiently manage their online presence and interactions with customers.
  3. Performance metrics and evaluation: The company needs to establish new performance metrics and evaluation criteria for beauty consultants in their new roles, such as social media reach, engagement rates, online sales, and customer retention.
  4. Compensation and incentives: Beautify may need to restructure compensation packages and incentives for beauty consultants, taking into account their new responsibilities, online sales targets, and the potential for increased revenue generation.
  5. Brand consistency: As beauty consultants become more active online, it is crucial to maintain consistent branding and messaging across all platforms to strengthen Beautify’s brand identity and reputation.
  6. Legal and compliance considerations: Beautify must consider any legal and compliance issues related to online marketing, customer data privacy, and intellectual property rights as their beauty consultants transition to a more digital-focused role.
  7. Change management This transition may require a significant cultural shift for both the company and beauty consultants. Effective change management strategies, clear communication, and support from leadership will be critical to ensuring a smooth transition and employee buy-in.
  8. Collaboration and cross-functional integration: Beauty consultants will need to collaborate closely with other departments

GPT-4’s answer was incredibly detailed, and even went into some nuances that McKinsey’s own answer didn’t, such as technology and compensation incentives. Consultants everywhere — and people hiring them — would be watching on with great interest.