They warn that CEOs who delay adopting AI risk the survival of their companies

The advancement of artificial intelligence (AI) in senior management is prompting companies to review their internal processes and create new digital governance structures, driving changes at all organizational levels. This warning and analysis comes from Eric Kutcher, a senior partner in the San Francisco Bay Area office and chairman of McKinsey & Company for North America, who shared his insights on the consulting firm's official podcast, hosted by Lucia Rahilly, global editorial director and deputy editor of McKinsey Global Publishing, and Roberta Fusaro, editorial director in Boston.

According to McKinsey, the adoption of AI is forcing CEOs to rethink not only the technology but the entire business model.

Kutcher argues that the transformation process is "eighty percent business and twenty percent technology," a proportion that, according to the executive, differs from the traditional perception of digital innovation. "CEOs who embrace this challenge will take their organizations to a different level. And the CEOs who wait... their companies won't exist. They won't thrive. It's that binary in terms of importance," Kutcher stated during the conversation.

The McKinsey chairman emphasized the democratic nature of artificial intelligence compared to previous technologies, such as semiconductors: "Everyone, from children to senior citizens, now has access to tools like ChatGPT. This happened rapidly and on a massive scale, unlike other innovations that took years to become widespread." This democratization has created additional pressure on executives, who must now make strategic decisions more quickly and with broader implications.

One of the most visible challenges, he explained, is the difficulty in translating AI investments into tangible business benefits.

The executive identified that many companies have fallen into the trap of implementing technology without redesigning underlying processes. "It's not enough to simply install the tool and expect results. It's necessary to define a vision for the next five years and communicate it clearly," the executive explained in the dialogue featured on the McKinsey Podcast.

In this regard, Kutcher shared examples of divergent strategies: some companies choose to integrate innovation uniformly across the entire organization, while others drive change in selected areas and then replicate the successful model. The focus, in both cases, lies in ambition and the ability of leaders to challenge traditional methods.

Developing digital fluency at all levels of the company appears to be a constant concern. Kutcher highlighted the phenomenon of young employees, who are often more familiar with technology than experienced managers.

“You can be an engineer and still feel like a beginner next to them. The key is the willingness to learn,” he noted. To illustrate this point, he mentioned the case of a CEO who, after using ChatGPT to resolve a personal query, changed his perspective on the practical application of AI in daily work.

Regarding the future of work, Kutcher anticipates more horizontal organizations, with fewer intermediate levels and closer collaboration between humans and automated systems. “We will have to decide where and how to integrate AI agents. Greater judgment and less direct supervision will be required,” he told the McKinsey editorial team.

Addressing concerns about entry-level jobs, the executive rejected the idea that these positions will disappear.

On the contrary, he emphasized the importance of offering learning and testing opportunities to less experienced employees, who, according to his analysis, already possess a high level of digital fluency and face complex challenges from the beginning of their careers.

Continuous access to training is another central theme identified in the McKinsey podcast. For Kutcher, companies must facilitate access to training and tools, but success will depend on each individual's willingness to adapt. “If they don't want to learn, they won't thrive,” he warned.

The executive also recommended that training programs include a significant proportion of content focused on the practical use of AI.

Addressing the governance of artificial intelligence, Kutcher acknowledged the risks and the need for effective controls, especially given the proliferation of thousands of digital agents within organizations.

He emphasized the importance of involving diverse teams and establishing policies for responsible use, warning about the impact that poor governance can have on business operations and reputation.

On the geopolitical and technological front, the McKinsey North America chairman identified a growing trend toward technological sovereignty and stricter data residency requirements. "Some markets will seek to avoid dependence on foreign providers, but limiting access to the best technology would come at a high cost," he commented on the podcast.

The analyst anticipates that collaborative models and more complex data structures will emerge to adapt to this fragmentation.

Regarding effective leadership, the executive highlighted qualities such as authenticity, approachability, and continuous learning. He stressed the importance of leaders staying connected with younger teams to understand the internal reality and considered vulnerability and the ability to recognize one's own limitations to be valuable attributes in today's management landscape.

Change management, according to McKinsey, has become the primary function of CEOs, surpassing even strategy. Kutcher pointed out that the real difference lies in the magnitude of ambition each leader is willing to embrace.

Looking ahead to the coming years, Kutcher expressed enthusiasm about the transformative potential of AI and advised those starting their careers in this field: "Never lose your intellectual curiosity. Never stop learning. Find your own voice and express it authentically, because the opposite prevents critical thinking."

For McKinsey, artificial intelligence represents a true transformation that is already impacting the fate of companies and redefining the role of their leaders, as evidenced by the statements gathered in their official podcast.