The State of AI_ Rewiring for Value in 2025

This McKinsey report analyzes the evolving landscape of AI adoption, particularly focusing on generative AI (gen AI), within organizations. The findings reveal a significant increase in both the use of AI and gen AI across various business functions. While still in the early stages of deployment, organizations are beginning to implement structural and process changes, including redesigning workflows, elevating governance, and mitigating risks, to capture meaningful value from gen AI. Larger companies are leading the way in these organizational shifts. The report highlights the correlation between top-down commitment (especially CEO oversight of AI governance) and bottom-line impact, the importance of workflow redesign, and the nascent adoption of key scaling best practices. While gen AI is generating revenue increases and cost reductions within specific business units, its impact on enterprise-wide EBIT remains limited for most organizations. The report also explores the evolving skills landscape, with a continued demand for AI talent and increasing focus on employee reskilling.

Source: Excerpts from "the-state-of-ai-how-organizations-are-rewiring-to-capture-value_final.pdf"

Date of Report: March 2025 (Survey data collected July 16-31, 2024)

Key Authors: Alex Singla, Alexander Sukharevsky, Lareina Yee, Michael Chui, Bryce Hall