Latest piece published by McKinsey Quarterly:
"Where AI will create value-and where it won't"
Key steps for leaders to unlock value:
- Assess the impact of AI on profit pools. Leaders should develop a detailed view of how AI will reshape industry economics-where value is created, lost, or shifted. They should also assess the impact of AI-powered productivity improvements and, more fundamentally, of innovation and lower transaction costs on revenue, costs, and margins.
- Build or strengthen AI-powered competitive moats. As AI adoption spreads, differentiation will stem from how companies build and combine hard-to-replicate competitive moats. Leaders should evaluate which sources of advantage can endure in an AI-driven environment, from proprietary data to network effects to structural cost advantages. The priority is to develop a reinforcing system of moats tailored to your position and deepening them before competitors do or before advantage solidifies elsewhere.
- Turn speed into a structural advantage. The ability to test, learn, and scale faster than competitors is a primary source of advantage in an AI-shaped economy. As experimentation cycles compress and the cost of iteration falls, organizations that move quickly improve at a higher rate. Faster experimentation generates more data; more data improves models and decision quality; better performance attracts more users and activity. Over time, this compounding dynamic widens the gap between leaders and laggards. CEOs should therefore invest in increasing organizational velocity-removing bottlenecks, accelerating deployment, and enabling continuous learning-recognizing that advantage accrues not just from what you build but how fast you improve.
- Rewire the business. Capturing the AI opportunity requires a fundamental rewiring of business units and functions around a scalable AI backbone. This includes redesigning end-to-end processes, modernizing data and technology infrastructure, embedding AI into decision-making and operations, and reshaping roles, governance, and ways of working. Leading organizations are not just experimenting with AI; they are rebuilding how the business runs so that AI can scale across functions and continuously improve performance.
#AI #innovationcommunity
- Todor
------------------------------
Todor Kostov
Director
------------------------------