How Organizations Are Rewiring for AI Value: What HR and C-Suite Leaders Need to Know

AI adoption is surging—but real enterprise value is still elusive.

According to McKinsey & Company’s newly released 2025 report,The State of AI: How Organizations Are Rewiring to Capture Value, most organizations are still early in their journey toward capturing bottom-line impact from generative AI (gen AI). For HR leaders and C-suite executives, the message is clear: capturing value from AI requires more than piloting tools—it requires structural change.

1. Redesigning Workflows is Essential

McKinsey found that one of the clearest drivers of AI-related EBIT gains is the fundamental redesign of workflows. Organizations that reimagine business processes—rather than layering AI onto outdated structures—are more likely to report financial gains. Only 21% of companies using gen AI report having redesigned workflows to date, signaling a major opportunity for transformation-led leaders.

2. AI Governance is Moving Up the Org Chart

Who owns AI governance matters. The survey shows that CEO involvement in AI oversight correlates with greater financial impact, especially in large enterprises. Yet only 28% of organizations have the CEO overseeing AI governance, and just 17% have board-level oversight. For organizations aiming to move from experimentation to value creation, strategic leadership at the top is a critical lever.

3. Risk Mitigation Is Maturing—but Still Incomplete

Organizations are beginning to take Gen AI risks more seriously. Compared to early 2024, more respondents report active efforts to manage risks like cybersecurity threats, IP infringement, and model inaccuracies. However, explainability—a key issue for regulatory compliance and employee trust—is still under-addressed by many organizations.

4. Adoption Best Practices Are Sparse but Effective

McKinsey’s research highlights 12 practices associated with AI adoption success—from tracking KPIs to building dedicated AI teams. Adoption of these practices remains low overall, though large companies are leading the charge. Notably, tracking well-defined AI-specific KPIs is one of the strongest predictors of value realization.

5. AI is Reshaping the Workforce

Gen AI isn’t just a technology shift—it’s a people shift. Many companies are reskilling staff and redefining roles, from data scientists to AI compliance officers. Larger firms are also more likely to reduce headcount in specific functions, especially customer service and supply chain operations, while increasing technical hiring in areas like IT and software engineering.

6. AI Is Everywhere—But Value Is Still Localized

AI use is spreading fast: 78% of organizations now use AI in at least one function, up from 55% just a year ago. Yet despite increased use in IT, sales, and operations, over 80% of respondents still say their organizations haven’t seen a material enterprise-wide EBIT impact from gen AI deployments.

What This Means for HR and Business Leaders

AI is no longer a frontier technology—it’s a core capability. But capturing value demands more than investment in tools. It requires intentional leadership, redesigned processes, and a focus on change management. For HR, that means reskilling strategies, workforce planning, and organizational design will be central to unlocking AI’s full potential.

Gain a deeper understanding of how AI is shaping the future of HR and business leadership. Read more about The Future of Work and Healthcare: A Convergence of Employee Expectations and Strategic Benefits Trends in 2025 here.