The real AI advantage
7/9/202620 min
The first wave of AI adoption has been all about efficiency gains. But what happens when everyone else, using the same tools, is experiencing the same productivity improvements? Where will competitive advantage come from then? McKinsey research suggests that the companies that outperform with AI will be those that rethink customer experiences, redesign how work gets done, and build operating models that continuously adapt to change.
In this episode of The McKinsey Podcast, McKinsey Senior Partner and McKinsey Global Institute Director Tanguy Catlin explains to Editorial Director Roberta Fusaro why CEOs should shift their focus from AI-driven productivity to AI-powered reinvention. They discuss the rise of agentic AI, how competitive dynamics are changing, and why organizational transformation—not technology—is likely to be the defining challenge of the AI era.
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First 90 secondsTanguy Catlin· Guest0:00
[upbeat music] People need to realize that it will never be as slow as today. And so a big part of winning the future will be an adaptable operating model that allows you to learn fast and keep up with change.
Roberta Fusaro· Host0:12
That's McKinsey senior partner Tanguy Catlin. Everyone is targeting better productivity through AI, but if every company has access to the same AI tools, where will the competitive advantage come from? McKinsey research suggests executives must look beyond efficiency and focus more on product and service innovation. Tanguy joins us to get into it. [upbeat music] This is the McKinsey Podcast, where we help you make sense out of the world's toughest business challenges. I'm Roberta Fazzaro, your host for today. Tanguy, thanks so much for joining the podcast today.
Tanguy Catlin· Guest0:54
It's pleasure having me. Thank you.
Roberta Fusaro· Host0:56
In several recent McKinsey articles, Tanguy, you and your co-authors have been exploring what I call the second day story around AI, because despite all these massive investments in AI, most companies still aren't getting the biggest bang that they're intending to. Why do you think so many leaders still equate AI success with productivity when actually real value might lie somewhere else?
Tanguy Catlin· Guest1:22
I think it's a very common question. Whenever we have seen the advent of what we call a