Well it's about time - McKinsey report says AI is 'on the road to ROI' at last

Date:
Fri, 28 Aug 2026 18:45:00 +0000

Description:
McKinsey claims the march to agentic AI continues, and it might even start paying for itself soon...

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter McKinsey report into the state of AI finds more businesses are deploying agentic solutions 20% of organizations have been constrained by operating costs but plan to increase investments into AI However some are still concerned about job cuts due to AI replacement More companies are adopting agentic AI solutions, but are also facing difficulties in making the technology pay for itself, according to new research from McKinsey - however, there is good news on the horizon, with reports of an encouraging financial impact attributed to AI use.

Several cost-saving advantages of AI adoption have been found, with almost
33% of respondents saying they had moved away from software procurement in favor of developing in-house solutions with agentic coding tools. Interestingly, the survey has found that while AI use for organizations at large seems relatively muted, it is boosting the performance of individual employees. But on the downside, 39% of those who responded expect a decline
in the size of their organizations workforce due to AI. Latest Videos From TechRadar Watch full video here: Reshaping businesses Many organizations have explored AI, with 40% of those surveyed with annual revenues of more than $1 billion are scaling AI agents, an increase on last years survey which
recorded 27%.

In smaller organizations, just 22% reported scaling, a figure that hasnt improved notably since the previous survey. Its a figure that suggests unsurprisingly that the larger organizations are more suited to exploring AI and scaling agentic applications. This is something that is highlighted in McKinseys report. You may like Many business leaders admit they only have a 'limited understanding' of AI budgets New report shows rushing into AI deployment could cost your business big CEOs are being left baffled at the high cost of moving to AI

Organizations conviction in AI is growing faster than the immediate financial returns they can attribute to it, McKinsey said. More expect AI to reshape their business over the next three years than did a year ago, and they continue to plan to invest more.

So, the EBIT (Earnings Before Interest and Taxes) factor, where at least 5% goes into AI, may seem low, and seems pretty flat with just 6% of
respondents, but it has not declined, which at this stage is vital. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting
your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. The downside of agentic AI This survey reveals some significant trends, however, that could be seen as challenging for any business putting their eggs into a basked marked AI.

A key challenge is proving to be the token cost, with 20% reporting reduced use of AI due to operating costs. However, while 80% have reported that increases in individual productivity and 50% have claimed improved decision making, the use of AI seems to be making the changes that many observers have predicted over recent years.

The surveys respondents are not optimistic on the impact of AI on the size of their workforce. 39% expect workforce declines caused by AI over the coming
12 months. This is up from 32% in McKinseys previous report, although it is important to note that 43% expect no AI-related decline or increase. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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