AI transformation likely to accelerate as companies shift from adoption to enterprise-wide value creation: Report
Companies are likely to move beyond simply deploying AI tools and increasingly focus on redesigning workflows, operating models and roles to unlock enterprise-level value, according to a research report by McKinsey.
A new McKinsey research report predicts that AI transformation will accelerate as companies shift from adoption to enterprise-wide value creation. The report identifies three stages of AI transformation: enablement, automation, and reinvention. Currently, most organizations remain in the first two stages, with only 11% having reached the reinvention stage.
However, the report highlights that organizational readiness, rather than individual readiness, is more strongly associated with enterprise value creation. This suggests that companies need to focus on redesigning workflows, operating models, and roles to unlock the full potential of AI. McKinsey emphasizes that workflow redesign is crucial at the enablement stage, as leaders who redesign workflows are five times more likely to capture enterprise value compared to those who do not.
As organizations progress towards automation and reinvention, AI-fluent leadership and employee capability building become increasingly important. The report concludes that organizations that continuously iterate, redesign, and adapt faster than competitors will be better positioned to convert rapidly evolving AI capabilities into sustained enterprise value.
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