McKinsey and Amazon Web Services (AWS) have created a new partnership called the Amazon McKinsey Group (AMG).
This group combines McKinsey’s business strategy with AWS’s cloud and AI technology. Many companies want to use AI and automation but struggle to get real results. AMG aims to solve this by using one integrated team to handle everything from the first plan to the final setup. They want to help large companies achieve outcomes worth $1 billion or more.
For example, they recently helped a car company improve its supply chain. By using AI, the company made its forecasting more accurate and reduced extra stock by 60%.
Unlike many other partnerships, AMG says its fees will be linked to the success of the project. While this reduces the work of managing different companies, it also means the client relies heavily on this one group. Overall, AMG promises to move companies from small tests to massive, global results faster.