We came across a McKinsey State of AI insight that everyone seems to be panicking about. It turns out the panic is misplaced. The data shows exactly what you should expect from a general purpose technology in its early phase.
Big Ideas
Innovation is up, not profit
Innovation is improving 64 percent and employee satisfaction 45 percent, yet profit impact sits at 36 percent and revenue at 33 percent. That gap is normal at this stage of AI adoption.
We are repeating the electricity timeline
When factories first adopted electricity, productivity barely moved for decades. Only when companies redesigned workflows around distributed power did gains arrive. AI is in the same slow-then-sudden curve.
Real ROI requires workflow redesign
The 6 percent of companies reporting real profit impact rebuilt their workflows. The other 94 percent simply added AI to old processes. That is electric lights on a steam factory.
Upskilling is the missing lever
AI makes individuals better, but organisations only capture value when teams reinvent how work happens. This cannot be delegated solely to leadership. Everyone must reimagine their role.
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If your organisation is seeing innovation gains but not profit gains, that is exactly where you should be right now. The payoff comes when workflow redesign catches up to capability.
Practical takeaway
If your people are improving faster than your processes, you are on track. The next step is intentionally redesigning how work flows, not adding more tools.
