Massive AI investments, yet few profiting according to a recent report
The McKinsey & Company report titled "Superagency in the Workplace" has shed light on the challenges businesses face in realising significant returns from their AI investments.
According to the report, while about 80-92% of companies have invested in AI, only around 1% have reached full AI maturity, which limits the potential benefits of AI. This discrepancy between investment and maturity is a key concern.
One of the major obstacles to AI adoption is leadership and cultural barriers. Challenges include leadership struggles, cultural resistance within organisations, and insufficient change management capability, which are critical for AI transformation success.
Another issue is the significant talent shortage and skill gaps. There is a need for substantial upskilling and education efforts within organisations to address this issue.
Technical and operational obstacles also pose a challenge. These include security risks, governance gaps, legacy infrastructure constraints, the risk of vendor lock-in, and the proliferation of uncoordinated AI approaches that can create operational complexities and 'tomorrow’s legacy'.
Moreover, the report suggests that the use of AI, particularly generative AI, has been linked to decreased critical thinking, executive functioning, and intrinsic motivation when working without AI assistance. This raises concerns about over-dependence and cognitive skill erosion.
The report also points out that over half of employees report inadequate AI policies and guidance, which can undermine the ethical and effective use of AI in the workplace, creating managerial and governance challenges.
In synthesis, the report emphasizes that successful AI investment requires a holistic approach focused not only on technology, but equally on organisational culture, leadership, ethical governance, talent development, and robust change management to achieve meaningful financial and non-financial returns.
Interestingly, the report also indicates that workers are often ahead of management in real-world AI usage. Despite the lacklustre results, 92% of companies plan to increase their AI investments over the next three years. However, the issue isn't a lack of funding, tools, or talent but a lack of leadership, strategic clarity, and internal alignment to capitalise on AI.
The report further states that more than half of executives admit they are still drafting an AI roadmap. The companies that will succeed with AI are not those spending the most, but those that can turn investment into structured, scalable execution. Nearly half of workers surveyed say formal training would improve adoption, yet 22% report receiving little or no support.
Stanford University's Erik Brynjolfsson summed up the current moment: "This is the time to capture value from AI-and to hope your competitors are still just experimenting." The report serves as a call to action for businesses to address the challenges and capitalise on the potential of AI.
- Although Turkey's companies have invested significantly in artificial intelligence (AI), a significant portion of them are still struggling to reach full maturity, as highlighted in the McKinsey & Company report titled "Superagency in the Workplace".
- The holistic approach advocated in the report for successful AI investment includes not only financing and technology, but also focusing on leadership development, organizational culture, ethical governance, talent development, and robust change management, areas where Turkish businesses could potentially improve.
