McKinsey Explainers

Simple answers directly from our experts

Featured explainers

Agentic AI explained: When machines don’t just chat, but act

-
Three McKinsey experts explain how agentic AI could reshape workflows, decision-making, and how humans and machines collaborate.
Discover what makes agentic different

What is the future of mobility?

-
This series of McKinsey Explainers explores what’s around the next corner for the mobility industry.
See the whole series
A playful design features various modes of transportation, including bicycles, scooters, and stylized cars and flying vehicles, on curved blue tracks set against a light blue sky. The scene is enhanced with round orange and white shapes resembling suns and clouds.
A green apple split into 3 parts on a gray background. Half of the apple is made out of a digital blue wireframe mesh.
What is generative AI?
-
Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. Recent breakthroughs in the field have the potential to drastically change the way we approach content creation.
Three trees of increasing size stand in a row against a minimal, light blue background, each planted in a circular cutout in the ground.
What is health span?
-
With aging populations and rising chronic disease, improving health span is becoming a societal and economic priority. Here’s what drives it and what can be done.

Interactive explainer

A joyful woman sitting cross-legged in a yoga pose, wearing a bright coral outfit and laughing with her eyes closed. The background is a solid blue with several floating circular shapes in different shades of blue, creating a calm and balanced visual effect.

The future takes shape: Five dimensions of tomorrow’s wellness economy

-
Health is wealth, for all of us—and increasingly, for organizations that operate in the thriving wellness space. In this McKinsey Explainer, we’ll delve into what people care about when it comes to their health and the changes we can expect in this space in the future.

Video explainers

What is sovereign AI?

-
Three McKinsey experts explain what sovereign AI really means—and why control over the AI stack is becoming a strategic priority for countries and companies alike.
Explore sovereign AI strategies

How are companies valued?

-
Three McKinsey experts explain what really drives valuation—and where leaders often get it wrong.
What really drives valuation

The brain economy explained: Why strong brains power strong economies teaser

-
Four McKinsey Health Institute leaders explain why brain health and brain skills are foundational to growth, resilience, and the future of work.
Invest in brain health

More explainers

Tech & AI

What is sovereign AI?

Three McKinsey experts explain what sovereign AI really means—and why control over the AI stack is becoming a strategic priority for countries and companies alike.
Healthcare

What is health span?

With aging populations and rising chronic disease, improving health span is becoming a societal and economic priority. Here’s what drives it and what can be done.
People & Organizational Performance

How are companies valued?

Three McKinsey experts explain what really drives valuation—and where leaders often get it wrong.
People & Organizational Performance

The brain economy explained: Why strong brains power strong economies

Four McKinsey Health Institute leaders explain why brain health and brain skills are foundational to growth, resilience, and the future of work.
Digital & Technology

Agentic AI explained: When machines don’t just chat, but act

Three McKinsey experts explain how agentic AI could reshape workflows, decision-making, and how humans and machines collaborate.
Healthcare

The future takes shape: Five dimensions of tomorrow’s wellness economy

In this McKinsey Explainer, we look at what people care about when it comes to their health and the changes we can expect in this space in the future.
People & Organizational Performance

What is an operating model?

An operating model is the backbone of any organization. It outlines how the company delivers value to its customers, operates on a day-to-day basis, and achieves its strategic objectives.
Leadership & Economic Studies

What is Davos and the World Economic Forum (WEF)?

Davos, Switzerland, is where the World Economic Forum holds its annual meeting. Delegates from many sectors converge for several days of talks and meetings to address urgent global issues.
Macroeconomics

What is a stablecoin?

Stablecoins aim to combine the flexibility of blockchain innovations with the stability of traditional money.
Digital & Technology

What is RegTech?

RegTech, or “regulatory technology,” refers to technologies that improve processes at financial-services organizations, particularly those related to risk and compliance.
Digital & Technology

What is a data center?

A data center is a facility that houses and runs IT infrastructure that’s critical to the digital economy, particularly gen AI.
Automotive & Assembly

What is the future of mobility?

This series of McKinsey Explainers explores what’s around the next corner for the mobility industry.
Automotive & Assembly

What is an EV?

EVs are vehicles powered by electricity and an electric motor rather than a conventional gasoline-fueled internal-combustion engine.
Automotive & Assembly

What is an EREV?

Extended-range electric vehicles may ease the transition to the electric future of mobility.
Digital & Technology

What is multimodal AI?

Multimodal AI is a type of artificial intelligence that can understand and process different types of information, such as text, images, audio, and video, all at the same time. Multimodal gen AI models produce outputs based on these various inputs.
Healthcare

What are GLP-1 medications?

GLP-1s are drugs that help people manage diabetes and lose weight. Their surging popularity has a range of economic and public health implications.
Digital & Technology

What is micromobility?

Micromobility refers to lightweight vehicles—typically electric—used for short-distance urban transportation. These vehicles provide a sustainable and flexible alternative to cars, helping to reduce traffic congestion and carbon emissions.
Digital & Technology

What is a semiconductor?

A semiconductor is a material that falls somewhere on the continuum between conductor and insulator, enabling a controlled flow of electrical current. Manufacturers process semiconductor materials such as silicon and other materials into chips for electronic devices.
Macroeconomics

What is a recession?

A recession is the part of an economic cycle that involves an economic contraction.
Digital & Technology

What is an AI agent?

AI agents are the tools we use to interact with AI. They can automate and perform complex tasks, such as natural language processing, that would normally require humans.
Automotive & Assembly

What is a self-driving car?

A self-driving car, or autonomous vehicle, is a type of vehicle that can operate with little or no direct input from humans.
Marketing & Consumer

What is e-commerce?

E-commerce, or electronic commerce, is the buying and selling of goods and services over the internet, on websites, mobile apps, or social media. By optimizing e-commerce as part of a broader digital-commerce transformation, sellers stand to attract more customers and earn more profits.
Digital & Technology

What is SaaS?

SaaS stands for software as a service. Users access SaaS products remotely via the cloud.
Digital & Technology

What is a context window?

A context window is how information is entered into a large language model (LLM). The larger the context window, the more information the LLM is able to process at once.
People & Organizational Performance

What is the future of wellness?

Wellness is about more than feeling good. It’s a thriving business that is poised to keep growing.
Sustainability

What is the future of sustainability?

The global energy transition is entering a new phase. These ten McKinsey Explainers highlight what leaders need to know to grow through—and not just react to—the new climate era.
Sustainability

What is biodiversity?

Biodiversity is the multitude of diverse organisms across an ecosystem. It is essential for supporting the health and sustainability of all life on Earth.
Digital & Technology

What are AI guardrails?

AI guardrails help ensure that an organization’s AI tools, and their application in the business, reflect the organization’s standards, policies, and values.
Sustainability

What are natural climate solutions?

Natural climate solutions, or NCS, are nature-based actions that either reduce or sequester greenhouse gas emissions, helping to protect, restore, and manage nature to further global climate goals.
Digital & Technology

What is retrieval-augmented generation (RAG)?

Retrieval-augmented generation, or RAG, is a process applied to large language models to make their outputs more relevant for the end user.
Sustainability

What is net zero?

Net zero is an ideal state where the amount of greenhouse gases released into the Earth’s atmosphere is equal to the amount removed. Emission removal and reduction through decarbonization efforts are needed to reach net zero.
Sustainability

What is decarbonization?

Decarbonization is the reduction and removal of carbon dioxide and other greenhouse gases from the atmosphere.
Sustainability

What is wind energy?

Wind energy is a renewable source of electrical or mechanical power that could help transform the energy sector.
Sustainability

What are sustainable fuels?

Sustainable fuels are made from renewable materials instead of from fossil fuels. They include biofuels made from organic matter, so-called green gasoline, and hydrogen-based fuels.
Sustainability

What is hydrogen energy?

Hydrogen energy is an alternative to fossil fuels that may represent a cleaner way to power our world.
Sustainability

What are Scope 1, 2, and 3 emissions?

Scope 1, 2, and 3 emissions are greenhouse gases that are released across an organization’s entire value chain. Scope 3 emissions are the most complex, as they are released before and after a product is delivered or consumed.
People & Organizational Performance

What is leadership?

Leadership is a set of mindsets and behaviors that aligns people in a collective direction, enables them to work together and accomplish shared goals, and helps them adjust to changing environments.
People & Organizational Performance

What is Gen Z?

Generation Z comprises people born between 1996 and 2010. This generation’s identity has been shaped by the digital age, climate anxiety, a shifting financial landscape, and COVID-19.
Digital & Technology

What is digital-twin technology?

A digital twin is a digital replica of a physical object, person, system, or process, contextualized in a digital version of its environment.
Strategy & Innovation

What is digital transformation?

Digital transformation is the rewiring of an organization, with the goal of creating value by continuously deploying tech at scale.
Digital & Technology

What is cloud computing?

Cloud computing allows companies to store their infrastructures remotely via the internet, ultimately reducing costs and creating value.
Growth

What does the future hold for India?

This may be India’s century. We look ahead at seven trends likely to shape the country for years to come—and help it achieve its development goals.
Sustainability

What is circularity?

Circularity refers to practices that optimize resource use and minimize waste across the entire production and consumption cycle, emphasizing sustainability and economic efficiency.
Macroeconomics

What is the future of travel?

Travel is roaring back after the COVID-19 pandemic nearly decimated the industry. Here’s what you should know about the journey ahead.
Macroeconomics

What is productivity?

Productivity measures the amount of value created for each hour that is worked in a society.
Digital & Technology

What’s the future of AI?

AI is here to stay. To outcompete in the future, organizations and individuals alike need to get familiar fast. This series of McKinsey Explainers dives deep into the seven technologies that are already shaping the years to come.
Digital & Technology

When and why to use a digital twin?

A digital twin can drive growth and innovation. Here's how to determine whether using one could benefit your company.
Digital & Technology

What is machine learning?

Machine learning is a form of artificial intelligence that is able to learn without explicit programming by a human.
Digital & Technology

What is deep learning?

Deep learning is a type of machine learning that is more capable, autonomous, and accurate than traditional machine learning.
Macroeconomics

What is inflation?

Inflation is the gradual loss of purchasing power, reflected in a broad rise in prices for goods and services.
Digital & Technology

What is quantum computing?

Quantum computing is a new approach to calculation that uses principles of fundamental physics to solve extremely complex problems very quickly.
Digital & Technology

What is AI (Artificial Intelligence)?

Artificial intelligence is a machine’s ability to perform some cognitive functions we usually associate with human minds.
Digital & Technology

What is generative AI?

Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. Recent breakthroughs in the field have the potential to drastically change the way we approach content creation.
Strategy & Innovation

How to prepare for the CFO role?

Amid decade-high CFO turnover, former chief financial officers share advice on what matters most today for securing the top job in finance.
Strategy & Innovation

How can banks prepare for regulatory exams?

Mock exams can help banks prepare for regulatory reviews and synchronize business objectives and risk management.
Digital & Technology

What is prompt engineering?

Prompt engineering is the practice of designing inputs for AI tools that will produce optimal outputs.
Digital & Technology

What is artificial general intelligence (AGI)?

Artificial general intelligence (AGI) is a theoretical AI system with capabilities that rival those of a human. Many researchers believe we are still decades, if not centuries, away from achieving AGI.
People & Organizational Performance

What is diversity, equity and inclusion?

It’s three values held by many organizations working to be mindful and supportive of different groups of individuals.
Macroeconomics

What is economic inclusion?

Economic inclusion is when people not only have their basic subsistence needs met but also are productive, fulfilled, and fully empowered to make choices about their lives.
Digital & Technology

What is tokenization?

Tokenization is the process of creating a digital representation of a real thing. Tokenization can be used to protect sensitive data or to efficiently process large amounts of data.
Digital & Technology

What is fintech?

Fintechs are companies that rely primarily on technology and cloud services—and less so on physical locations—to provide financial services to customers.
Strategy & Innovation

What is the C-suite?

The C-suite is the group of executives responsible for running an organization.
Digital & Technology

What are the responsibilities of a CIO versus a CTO?

Broadly speaking, a chief information officer focuses on internal technology, while a chief technology officer focuses on emerging technologies and product strategy.
Strategy & Innovation

Why do organizations have COOs?

The operations lead is the counterweight to the external-facing CEO, building organizational resilience and employee empowerment.
Strategy & Innovation

What does a chief transformation officer do?

A chief transformation officer is the high-level orchestrator of a business transformation.
Strategy & Innovation

What are the roles and responsibilities of a CFO?

The CFO role was named for its original function of overseeing an organization’s finances, but it’s now seen as a cross-cutting common denominator linking every part of an organization.
People & Organizational Performance

How is the CHRO role changing?

The new mandate? Propel technological and operating-model changes in HR while still keeping the “human” in human resources.
Marketing & Consumer

Why is collaboration key to CMO success?

CMOs are responsible for more than marketing their company’s products or services. They should also forge strong partnerships with their C-suite colleagues to drive growth.
Strategy & Innovation

What makes a successful CEO?

The CEO is the person ultimately responsible for the success of a company. Their job is to develop strategy and deploy the resources to deliver on it.
Sustainability

What is the global stocktake?

The global stocktake is an assessment of progress made toward mitigating global warming since the Paris Agreement in 2015. The results from the first-ever global stocktake will be discussed at COP28.
Digital & Technology

What is Web3?

Web3 is a term used to describe the next iteration of the internet, one that is built on blockchain technology and is communally controlled by its users.
Sustainability

What is cultivated meat?

Cultivated meat is animal protein grown in a lab from animal cells.
Sustainability

What is COP?

COP refers to the United Nations’ annual conference on climate change. Its 30th meeting, COP30, is scheduled to begin November 10, 2025, in Belém, Brazil.
People & Organizational Performance

What is brain health?

Good brain health means more than just the absence of disease. It also includes overall healthy cognitive functioning, resilience, and a state of well-being where individuals feel able to fulfill their potential.
Digital & Technology

What’s the future of generative AI?

Generative AI has hit the ground running—so fast that it can feel hard to keep up. Here’s a quick take pulled from our top articles and reports on the subject.
Strategy & Innovation

What is business risk?

An organization faces business risk when it is exposed to a situation that can lead to decreased profits or even bankruptcy.
People & Organizational Performance

What is burnout?

Burnout is the feeling of depletion, cynicism, and emotional distance that results from a lack of impact or autonomy at work.
Retail

What is fast fashion?

Fast fashion retailers have sped up their production processes, getting new styles to customers at a record pace—and creating significant environmental and social challenges.
People & Organizational Performance

What is financial inclusion?

Financial inclusion is when everyone can access financial services that can help them build wealth, including savings, credit, loans, equity, and insurance.
People & Organizational Performance

What is the gig economy?

The gig economy refers to the workforce of people engaged in freelance and side-hustle work.
Aerospace & Defense

What is space junk?

Space junk refers to fragments left behind in space. Most space junk is debris from rocket-launching material and disused satellites.
People & Organizational Performance

What is psychological safety?

Psychological safety is the absence of interpersonal fear. Feeling psychologically safe allows people to perform their best at home, school, and work.
Strategy & Innovation

What is a board of directors?

A board of directors is a governance entity that oversees and supports management on behalf of shareholders and other stakeholders to maximize value creation.
Digital & Technology

What is bioengineering?

Bioengineering is the application of engineering principles to improve disease prevention and treatment, agricultural production, energy sustainability, and more.
Marketing & Consumer

What is social media?

Social media comprises the applications and websites that allow people to interact with other users, businesses, communities, and content.
Marketing & Consumer

What is personalization?

In marketing, personalization is when seller organizations use data to tailor messages to specific users’ preferences.
People & Organizational Performance

What is talent management?

Talent management includes all the ways that organizations bring employees on board, keep them happy and productive, and help them continue to develop their skills over time.
Strategy & Innovation

What is an effective meeting?

Effective meetings are all about purpose, preparation, and presentation.
Strategy & Innovation

What is business transformation?

Business transformations are designed to boost overall performance through increased revenue, lower operating costs, and better customer satisfaction and workforce productivity.
Marketing & Consumer

What is influencer marketing?

Influencer marketing is a collaboration between popular social-media users and brands to promote brands’ products or services.
Digital & Technology

What is cybersecurity?

It’s what organizations do to protect their own and their customers’ data from malicious attacks.
Strategy & Innovation

What is agile?

Agile is a way of working that seeks to harness the inevitability of change, rather than resist it.
People & Organizational Performance

What is decision making?

Decision making is simply the process of making a choice. But decision making often isn’t easy and can be particularly complex in an organizational context.
Strategy & Innovation

What is design thinking?

Design thinking is a systemic, intuitive, customer-focused problem-solving approach that organizations can use to respond to rapidly changing environments and to create maximum impact.
Macroeconomics

What is central bank digital currency (CBDC)?

CBDCs are digital currencies issued by central banks. Their value is linked to the issuing country’s official currency.
People & Organizational Performance

What is the future of work?

It's an informed perspective about how work could shift and how workforces and workplaces can prepare for those changes.
Strategy & Innovation

What is resilience?

Resilience is the ability to not only recover quickly from a crisis but to bounce back better—and even thrive.
Digital & Technology

What is proof of stake?

Proof of stake (PoS) is a consensus protocol in blockchains. It is a way to decide which user or users validate new blocks of transactions and earn a reward for doing so correctly.
Digital & Technology

What is 5G?

5G is the fifth generation of wireless technology. Its increased speed, lower latency, and improved reliability stand to revolutionize a wide variety of industries.
Digital & Technology

What is blockchain?

Blockchain is a secure database shared across a network of participants, where up-to-date information is available to all participants at the same time.
Digital & Technology

What is exascale computing?

Exascale is the next milestone in computing. It’s a higher level of computer performance that will have unprecedented impact on society and the economy.
Macroeconomics

What is supply chain?

The supply chain is the interconnected journey that raw materials, components, and goods take before their assembly and sale to customers.
Strategy & Innovation

What is innovation?

Innovation—in a business context—is the systematic practice of developing and marketing breakthrough products and services for adoption by customers.
Marketing & Consumer

What does CX mean?

It's everything an organization does to put customers first, managing their journeys and serving their needs.
Digital & Technology

What is Industry 4.0?

It's the next phase in manufacturing's digitization, driven by the rise of data, connectivity, and other tech trends.
Marketing & Consumer

What is the Internet of Things (IoT)?

It describes objects and a variety of technologies that connect the digital and physical worlds.
Marketing & Consumer

What is omnichannel marketing?

It's when you interact with your customers over whatever channels they prefer.
Sustainability

What is food insecurity?

The term “food insecurity” refers to the economic and social conditions that limit access to safe, nutritious food—and sufficient amounts of it. More than two billion people worldwide experience food insecurity.
Macroeconomics

What is economic growth?

It describes how much an entity, such as a country, is increasing and improving the goods and services it produces.

Questions

Let us know what questions you’d like to see answered. Due to the high volume of inquiries, we will answer select questions only.
Submit it here