Why Most Companies Aren't Seeing Meaningful Returns from AI

The first wave of AI adoption has been all about efficiency gains. But what happens when everyone else, using the same tools, is experiencing the same productivity improvements? Where will competitive advantage come from then? McKinsey research suggests that the companies that outperform with AI will be those that rethink customer experiences, redesign how work gets done, and build operating models that continuously adapt to change. In this episode of The McKinsey Podcast, McKinsey Senior Partner Tanguy Catlin explains to Editorial Director Roberta Fusaro why CEOs should shift their focus from AI-driven productivity to AI-powered reinvention. They discuss the rise of agentic AI, how competitive dynamics are changing, and why organizational transformation—not technology—is likely to be the defining challenge of the AI era. Read the full report: https://www.mckinsey.com/capabilities... Chapters: 0:00 - Why most companies aren't seeing returns from AI 1:23 - Beyond the AI productivity trap 2:55 - How companies can capitalize on reduced friction 3:53 - The rise of agentic commerce 6:20 - How could AI affect home buying? 7:55 - What will be the new competitive advantage? 10:25 - How companies should reorganize 12:20 - The most challenging aspect for CEOs 13:35 - What metrics should leaders use to measure AI value? 14:55 - Which industries are most vulnerable to AI disruption? 17:45 - The biggest lessons for leaders in the AI era About the guest: McKinsey Senior Partner and McKinsey Global Institute Director Tanguy Catlin: https://www.mckinsey.com/our-people/t... Any unanswered questions about this episode? Comment or send them our way at: [email protected]. Connect with us: Subscribe to our channel: http://mck.co/YouTube Subscribe to our newsletters: http://mck.co/Subscribe Find us on: Facebook: http://mck.co/Facebook Twitter: http://mck.co/Twitter LinkedIn: http://mck.co/LinkedIn Instagram: http://mck.co/Instagram Theme music composed, performed, and produced by Joy Ngiaw. See www.mckinsey.com/privacy-policy for privacy information.