McKinsey report shows AI interest but slow scaling

Most companies are using artificial intelligence in some part of their operations, but few have moved beyond pilot projects, according to McKinsey's State of AI in 2025 report. The global survey found that 88 percent of organisations use AI in at least one business function, up from 78 percent the previous year. However, nearly two-thirds remain in the experimentation or piloting stage and have yet to scale AI across the enterprise.

Agent use expanding

Interest in AI agents, systems based on foundation models capable of autonomous planning and execution, has risen sharply. Sixty-two percent of respondents said their organisations are at least experimenting with AI agents, while 23 percent are scaling their use in one or two functions. Agent deployment is most common in IT and knowledge management, and particularly prevalent in technology, media, telecommunications and healthcare sectors.

"Already, about a quarter of our survey respondents report that they have started scaling at least one agentic AI system, but usually only in one or two business functions," said Michael Chui, Senior Fellow, McKinsey. "Looking across the entire enterprise landscape, the use of agents is not yet widespread. This gap highlights the contrast between the great potential that manifests in a 'hype cycle' and the current reality on the ground."

Limited enterprise gains

Despite widespread adoption, measurable financial impact remains limited. Only 39 percent of respondents said AI had any effect on enterprise-wide EBIT, and most of those reported less than five percent of EBIT attributable to AI use. However, 64 percent said AI had improved innovation, while almost half cited gains in customer satisfaction and competitive differentiation.

"While companies may have rolled out AI tools, most have not yet productised use cases, redesigned workflows around AI and agentic capabilities, or built the platforms and guardrails needed to run them at scale," said Alex Singla, Senior Partner, McKinsey. "The companies reporting EBIT impact tend to have progressed further in their scaling journeys. All business leaders are seeking to make their companies more efficient, but the real results emerge when leaders are also able to use technology to innovate."

High performers lead

A small group of "AI high performers", about six percent of respondents, reported achieving significant enterprise value. These companies attribute more than five percent of their EBIT to AI and are three times more likely than peers to expect transformative business change over the next three years. They also tend to set growth and innovation goals alongside efficiency targets and are more likely to redesign workflows around AI integration.

"What stands out most about the high performers is their level of ambition," said Tara Balakrishnan, Associate Partner, McKinsey. "Their AI agendas go beyond driving incremental efficiency gains. High performers are setting out to fundamentally reimagine their businesses. This level of ambition becomes a key differentiator and catalyst for change in the organisation."

Leadership and investment

High-performing companies also show stronger leadership commitment and governance. Senior executives in these firms are three times more likely to demonstrate ownership of AI initiatives and to engage directly in adoption efforts. More than one-third of these organisations dedicate over 20 percent of their digital budgets to AI technology, compared with less than 10 percent among others.

"Leading organisations successfully implement a set of practices that bridge the interface between AI and human users," said Bryce Hall, Associate Partner, McKinsey. "One of the leading practices is effectively determining how and when to incorporate 'human in the loop' - in the development, testing and deployment of AI solutions. The combination of AI solutions alongside human judgment and expertise is what creates real hybrid intelligence superpowers and real value capture."

Workforce expectations

Expectations for AI's workforce impact vary. Thirty-two percent of respondents anticipate workforce reductions of three percent or more in the coming year, while 13 percent expect increases. Larger companies are more likely to foresee reductions, whereas high performers expect more significant change, in either direction. Many organisations continue to hire for AI-related roles, particularly software and data engineers.

"As many companies are still in pilot and early production phases of AI use, it is not yet clear what impact AI will have on the number of jobs and nature of work," said Lareina Yee, Senior Partner and McKinsey Global Institute Director. "Still, even in these early days, we are seeing changes in the skills demanded for a range of jobs. Across positions like claims adjusters, digital marketers, and wealth managers, we are seeing increasing demand for AI skills; typically, this is about incorporating AI into existing roles or workflows."

Risk management rising

Organisations are paying more attention to managing AI risks, with respondents now reporting action on an average of four risk areas compared with two in 2022. The most frequently cited issues are inaccuracy, regulatory compliance and explainability. Over half of respondents said their organisations had experienced at least one negative consequence from AI use in the past year, with inaccuracy the most common.

"AI high performers are also more likely than their peers to report more, rather than fewer, negative consequences from AI use," said Alexander Sukharevsky, Senior Partner, McKinsey. "Because they are more ambitious, they are likely to be using the technology in mission-critical contexts that require sensitive monitoring. Their ambition also has considerable upside: it helps explain why these organisations tend to outperform - and offers an important lesson to those still struggling to realise value from their AI efforts."