Posted by Alumni from McKinsey
March 16, 2026
Organizations are investing billions in AI, and employees are increasingly using the technology. Yet only a small minority of companies are reporting meaningful or measurable gains from its use. It's the gen AI paradox: The technology can be found nearly everywhere'except on the bottom line. This is not an AI capability problem. We've created systems that can reason, create, and even act. Instead, it's an experience problem: We're stuck using search bars and chat boxes bolted onto interaction paradigms designed for a pre-AI era. If organizations are to realize AI's potential, they must learn to create new kinds of AI experiences that employees and customers will enthusiastically embrace. Doing so will require leaders to rethink a host of long-standing assumptions. For decades, software operated on a basic model: users specified structured inputs, and the system responded with structured outputs. Generative and agentic AI fundamentally breaks this model. Systems now interpret intent,... learn more