McKinsey: AI in Strategy - Beyond the Hype

What McKinsey's research reveals about AI strategy. Key findings for business leaders looking to move beyond the hype.

We translate this for UK SMEs on our SOS framework page and AI consulting cost guide.

Frequently Asked Questions

How many companies use AI in strategy?

According to McKinsey, only around 7% of companies use AI in strategy or financial planning, compared to 25 to 30% in marketing and operations. That gap is also the opportunity.

What are the six levels of AI in strategy?

Descriptive, diagnostic, predictive, prescriptive (emerging), delegated (future), and autonomous (future) intelligence. Most usable value today sits at the first three levels.

How can AI counter cognitive bias in strategy?

AI can flag sunflower bias when teams agree too quickly with the CEO, provide neutral analysis that does not aim to satisfy the boss, and offer a neutral basis for resource allocation debates. Useful for confirmation bias and agency problems.

What is the hockey stick phenomenon?

The pattern where executive forecasts are systematically over-optimistic. AI can produce a neutral momentum case based on past performance before executive optimism is added, giving boards a more honest baseline.

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