After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to stay, and its business potential is massive. We’ve already witnessed an exponential rate of gen-AI-related innovation, which promises to accelerate automation and enhance productivity, innovation, and the quality of work, as well as the employee and customer experience. The companies that fail to act and adapt now will likely struggle to catch up in the future. 

Despite all the buzz, most companies have yet to scratch the surface of gen AI’s promise. A recent McKinsey Global Survey reveals that employees are far ahead of their organizations in using gen AI,1 as companies have been slow to adopt in ways that could realize gen AI’s trillion-dollar opportunity. To harness employees’ enthusiasm and stay ahead, companies need a holistic approach to transforming how the whole organization works with gen AI; the technology alone won’t create value. This means applying gen AI in ways that enable the business strategy: by reinventing operating models and entire domains,2 by reimagining talent and skilling, and by reinforcing changes through robust governance and infrastructure.