The McKinsey State of AI 2025 report is out. This year’s findings reflect an AI landscape not just on the rise, but transforming organisations at their core.
Each year, McKinsey surveys hundreds of executives and leaders from companies worldwide to map how AI is affecting business, the economy, and the workforce.
The 2025 edition is based on feedback from across industries and regions, giving us a ringside view of how AI, and especially generative and agentic AI, has moved from pilot projects to the heart of business strategy.
Key Findings
- Adoption rates are soaring: Nearly 90% of companies are now using AI in at least one function. Generative AI, or “gen AI,” has become one of the fastest-adopted technologies ever, deployed in a wide array of business applications, from customer service chatbots to strategy modeling tools.
- Agentic AI is now mainstream, with 62% of organisations experimenting with autonomous AI agents handling everything from IT support to knowledge management.
- A divide is emerging: only about 1% of companies, the so-called “AI high performers,” have reached enterprise-wide scale, and they are reaping significant rewards such as increased revenues, cost savings, and productivity.
- Larger organisations, especially those with more than $500 million in revenue, are pulling ahead through deliberate restructuring, strong governance, and clear AI leadership at the executive level.
The report makes one thing clear: organisations that view AI as a business transformation tool, not just a cool technology, are the ones seeing real impact.
They’re integrating AI into workflows, creating cross-functional teams, and even redesigning jobs to leverage both human expertise and AI automation. Rather than eliminating jobs outright, many are focusing on upskilling, making AI-human collaboration a central competency.
Meanwhile, concerns about risk and ethics are moving to the forefront, with companies wrestling with issues like data accuracy, cybersecurity, bias, and explainability as they scale their AI systems. Formal governance is becoming essential, especially for larger enterprises.
Perhaps the biggest surprise: how quickly the AI gap is growing. Despite the broad adoption numbers, only a select group of companies is mastering AI at scale. These firms are not just dabbling; they’re fundamentally rewiring their operations and reaping outsized benefits, while many others remain stuck in pilot mode, struggling to unlock full value.
Another eye-opener is the speed of generative and agentic AI’s rise: in just over two years, these technologies went from emerging trends to being central in nearly every sector. And while workforce upheaval is real, more organisations are restructuring rather than simply cutting staff, refocusing on strategic, creative, and analytic roles while routine tasks shift to AI.
So, what’s the big takeaway?
According to McKinsey’s 2025 report, the future of AI is now a story about operational change, leadership, and pace.
The winners will be those who not only implement AI but adapt their cultures and workflows to harness its full power. The era of experimental AI is fading; the era of measurable impact and transformation is here.
If you want help to develop your AI roadmap or train your team, then get in touch. Book a call here.
You can get a copy of my new book AI Playbook here.
About the Podcast Host
Joanne Sweeney is a specialist in public-sector marketing and digital communications. She’s the author of Public Sector Marketing Pro and the creator of the Professional Diploma in AI for Public Sector Marketing. With years of experience in training, consulting, and advocating for digital transformation, Joanne provides insight and guidance for government agencies navigating the digital landscape. She is also the host of the award-winning Public Sector Marketing Show podcast.
