A pair of red and white concrete road barriers aligned on a street against a light blue background. You know about guardrails on the highway: barriers along the edge of the road that protect vehicles from veering off course and into danger. With the advent of generative AI (gen AI),…
On this page: Opportunity | Solution | Impact 0Kdocumentseasily searchable in database$0K+per hourestimated saved via recouped downtime0%improvement inapprox. 1st-time resolution rates The Opportunity Enhancing field service support with generative AI Ascendum is a Portugal-based global provider of machinery and equipment for the construction, infrastructure, haulage, and agriculture sectors. The company…
As India embraces digital transformation, inclusion, and a new role as a tech leader exemplified by a decade of technology transformation, or “techade,” new opportunities open up for the insurance sector and the wider financial services industry. With strong valuations and a significant growth trajectory, India’s insurance industry is poised…
A great aviator is constantly aware of their surroundings. Watching for changes in the weather and in the paths of other aircraft is vital. The same is true for being a great CEO, which is why the business press is full of information about what’s happening in the business environment:…
Today, banks use risk management to help drive strategic development for growth. This is a comprehensive approach to risk that insurers should aspire to emulate, especially as new risks are emerging more quickly and creating new challenges. According to a 2023–24 benchmarking survey from McKinsey, leading European insurers should look…
Active portfolio management should always be “Plan A.” Corporations that consistently refresh their business mix outperform their peers in TSR by 3.5 percent over the long term, honing their portfolios to develop, acquire, and divest businesses to realize their enterprise strategy. The goal, after all, is not growth for growth’s…
Decades after the internet’s debut, millions of Americans still lack access to high-speed broadband service. The Broadband Equity, Access, and Deployment Program (BEAD), part of the US government’s 2021 Infrastructure Investment and Jobs Act, provides $42.45 billion in federal funding to expand high-speed internet service across the country. By the…
Although hard to predict, even in the best of times, the fashion industry is in for a particularly tumultuous and uncertain 2025. A long-feared cyclical slowdown has arrived. Consumers, affected by the recent period of high inflation, are increasingly price sensitive. There is also the surprising rise of dupes, the…
Renewable energy is booming. Power generation from renewable sources, such as solar and wind, is projected to grow from its current share of about 25 percent of total US generation, to about 45 percent, by 2030. Although this new renewable capacity will help meet net-zero climate policy goals, it’s also…
Power and gas trading is undergoing a transformation. The global trading value pool for these commodities is growing by leaps and bounds. It hit nearly $33 billion in 2023, up 50 percent from the year before. But that’s only part of the story. The rise of renewable energy has introduced greater…
Companies globally are looking to adopt Fourth Industrial Revolution (4IR) technologies to boost both productivity and sustainability. However, the path to success is fraught with challenges, from outdated legacy systems to the critical need for workforce upskilling. In some cases, companies need to overcome an image problem that makes it…
Although capital deployment is strongly linked to enterprise value (EV) and financial health, it has always been difficult to manage. The chemical industry is no exception.Our research finds that the chemical industry anticipates annual growth of 3 to 5 percent by 2030, a 4 percent increase in capital expenditures, and…
Product portfolios tend to grow. Companies add new products and variants all the time to meet specific customer needs, pursue new market opportunities, or exploit technological advances. They can also be reluctant to kill off older items, for fear of upsetting long-standing customers. Finding the sweet spot in a portfolio…
The demand for oil and gas has returned to prepandemic levels; however, the energy transition is expected to change the demand trajectory for the industry over the medium- to long term. For oil, under all bottom-up scenarios modeled in our recent Global Energy Perspective 2024 report, demand is projected to…
In this episode of McKinsey on Building Products, McKinsey’s podcast on software product management and engineering, McKinsey partner Rikki Singh speaks with Varun Parmar, general manager of Adobe. Throughout his career, Parmar has led product teams at technology companies that are leaders in product-led growth (PLG), such as Box, Miro,…
A 3D rendering of light bulb covered with green grass and blooming yellow flowers against light gray backgroundAs with many aspects of modern life, technology has a significant role to play in tackling climate change—arguably the greatest challenge our species has ever faced. But to avoid the most devastating effects of…
Technology has reshaped banking. Traditional financial institutions have grown their technology teams and are demanding more from them than ever before. Technology teams build innovative new products such as AI-enabled personalized customer experiences, digital payments, and analytics-driven cross-selling. They integrate acquisitions, automate back-office processes, and securely manage vast amounts of…
Of all the various AI technologies, generative AI (gen AI) has arguably captured the most excitement among organizations in the business world and the public sector. Its ability to automate activities across a range of functions—customer interactions, content generation, and computer coding, for example—promises to reshape how much work gets…
Residential battery energy storage systems (BESS) primarily serve two purposes for homeowners. First, they capture energy generated by solar panels and store it for use when needed, such as in periods of inclement weather or when grid electricity rates increase. Second, they can act as backup generators, providing power during…
Mustering adequate human resources for healthcare is a significant challenge for most health systems globally. Everywhere you look, countries are facing shortages in qualified healthcare personnel, uneven distribution of workers, inadequate training, and challenging work environments. These issues are most acute in low- and middle-income countries, particularly in Africa, which…
Australia’s general insurers have been facing more frequent and more severe natural disasters, rapid inflation of claims costs, and increased scrutiny from regulators—all while trying to achieve sustainable financial performance. At the same time, the cost of insurance has become increasingly unaffordable for consumers. Insurers trying to outperform in this…
In 2021, we asked whether the private-brand trend would last. At the time, consumers were eagerly snapping up retailers’ owned brands, which were lower-priced and more readily available than similar products from many national brands. Fast-forward to today: our research clearly shows that consumers are continuing to opt for private…
Generative AI (gen AI) promises to transform business processes. The value added from gen AI could reach $ 4.4 trillion per year, according to McKinsey analysis. Historically, the packaging industry has lagged behind other industries in adopting new digital technologies—including traditional AI and machine learning. However, even in this industry,…
Math is wonderful—because it works. Consider a classic valuation question: Is the whole worth the sum of its parts? Put another way, should the total value of a conglomerate be less than the value of its operating companies, if each business were measured on a stand-alone basis? The answer is…
A golden outline of a speech bubble is filled with a jumble of colorful, balloon-like spheres. The spheres vary in size, color, and texture, and the image is set against a light-gray background. In recent years, large language models (LLMs) have made tremendous progress in their ability to generate content.…
Hurricanes Helene and Milton wrought destruction as they lashed across the southeastern United States in late September and early October. Lives were lost. Properties were ruined. Amid this devastation, it’s worth noting the considerable toll that storms like these can take on the small businesses that happen to lay in…
One night, over dinner, Daniel Kahneman changed my perspective on value creation. Why do so many people, including leaders of large corporations, draw back from acting more boldly, even when taking incremental risks can create much greater returns? And perhaps more important: Can anything be done about it? Kahneman explained…
The race is on to build sufficient data center capacity to support a massive acceleration in the use of AI. Data center demand has already soared in response to the role data plays in modern lives. But with the emergence of generative AI (gen AI), demand is set to rise…
According to economic historian Dr. Chris Miller, “You can’t understand the modern world without putting chips at the center of the story.” That conviction led Miller, an associate professor at the Fletcher School at Tufts University and nonresident senior fellow at the American Enterprise Institute, to research and write the…
Private credit has become a more popular financing option across many industries and types of businesses—and the opportunity for investors to deploy this approach is growing. In this episode of Deal Volume, McKinsey’s podcast on private markets, McKinsey partner and host Brian Vickery speaks to Vivek Mathew, president and head…
The consumer-packaged-goods (CPG) and retail industries are entering an era marked by a focus on growth and a search for value. The past decade has been particularly challenging, with population growth slowing and consumer attention fragmenting. To respond, companies must push an ambitious dual agenda, as McKinsey outlined in a…
Digitization, rapid advancements in AI technologies, and slower gains in power usage efficiency have significantly escalated the demand for data centers, with major implications for global power market dynamics. In Europe, demand for data centers is expected to grow to approximately 35 gigawatts (GW) by 2030, up from 10 GW…
If you have an ambition but no plan behind it, you’re probably not going to get the results you’re looking for. According to recent McKinsey research on the UK economy, the highest-performing UK companies have grounded their ambitions in a set of five conditions—looking at investors, incentives, sources of growth, partnerships,…
This transcript has been lightly edited for clarity.What keeps capital project leaders awake? Ishaan Nangia: What we hear consistently from capital project leaders is that there is a huge amount of value attached to their capital management system. Between 2022 and 2027, about $130 trillion of capital will be spent,…
Rising uncertainty surrounding future electricity demand could affect Europe’s energy transition and power infrastructure investment plans. Governments and system operators have projected that power demand in major European countries could increase by as much as 7 percent per year to 2030 after two decades of relative stagnation. In McKinsey’s Global…
At a glance Arenas are a unique category of industries defined by two characteristics: high growth and dynamism. They capture an outsize share of the economy’s growth, and the market shares of players within them change to an outsize degree. We have identified 18 potential arenas of the future that…
Brazil is hosting the G20 Summit for the first time this year, a role that will allow it to lead the discussion on critical global issues. High on the agenda at this year’s summit, held in Rio de Janeiro on November 18 and 19, is the challenge of climate change…
Leading a global organization in today’s fragmented world is difficult—perhaps more difficult than ever. Since the outbreak of COVID-19 and the acceleration of geopolitical tensions, leadership teams have faced an increasing number of uncertainties and disruptions. These include the sudden emergence of upending technologies, such as generative AI; the energy…
In this episode of The Committed Innovator, McKinsey innovation leader Erik Roth speaks with the founder, president, and medical director of the Child Mind Institute in New York City, Dr. Harold Koplewicz. At a time of increasing concerns globally about child and adolescent mental health, the organization is working to…
Positive news is emerging from various sources, suggesting the global economy might be turning a corner, though substantial risks remain. Central banks face a challenging balancing act between managing inflation and promoting growth, which led to divergent actions this month. Several banks cut rates to boost the economy in September,…