BRINGING OUR BEST INSIGHTS TO THE DAY’S NEWS
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Brought to you by Alex Panas, global leader of industries, & Becca Coggins, global leader of functional practices and growth platforms
Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Becca_Coggins@McKinsey.com.
—Alex and Becca
In the news. AI seems to be dismantling an age-old inefficiency: the information gap between buyers and sellers. As The Economist reports, gen AI tools can negotiate fair prices, detect hidden costs, and access high-quality advice from experts—all of which undermine a vast range of rip-off practices. In the UK alone, poor-quality goods and services are estimated to have cost its citizens the equivalent of 2.5% of GDP annually. [Economist]
On McKinsey.com. Is everything that companies know about consumer sentiment wrong? Not exactly, but sentiment and behavior have diverged in ways that challenge how organizations make sense of consumer signals. In an episode of the McKinsey on Consumer & Retail podcast, McKinsey Partners Christina Adams and Kari Alldredge share the key insights from a survey of more than 25,000 consumers across 18 countries. For example, people feel cautious but keep spending, Gen Zers are willing to splurge on themselves (and use AI to shop), buying local matters, and “value” extends beyond price. For consumer brands, the takeaways are clear: Invest in omnichannel experiences, reshape portfolios around growth segments, and build a 360-degree view of evolving consumer motivations.Understand today’s consumer
In the news. The use of agentic AI is gaining traction with corporate legal teams, but who’s accountable when agents err? The Financial Times reports that AI agents still require close human oversight for legal applications, such as checking customer contracts and assisting with negotiations, as agentic providers emphasize that the responsibility ultimately rests with human reviewers. Fewer than 1% of the world’s 5,000 largest companies use agents for legal work, according to one expert. But the technology could prove transformational if teams target clear, high-value use cases. [FT]On McKinsey.com. The rise of autonomous, goal-driven AI agents could unlock up to $4.4 trillion annually across more than 60 use cases, according to McKinsey estimates. But the technology also introduces a new class of digital risks, write McKinsey Partners Charlie Lewis and Rich Isenberg and coauthors. These risks, such as the spread of low-quality data across agents’ decisions, transcend traditional AI taxonomies. A practical, proactive strategy can help tech leaders assess readiness, mitigate vulnerabilities, and adopt agentic systems securely. Upgrading risk frameworks, defining agents’ access rights, and establishing human-in-the-loop governance are among the steps to help capture agentic AI’s promise without compromising security.Stay a step ahead of risk
In the news. Positive emotions don’t just lift moods; they can also reshape our brains. As Psychology Today notes, consistent optimism and gratitude boost neurotransmitters such as dopamine and serotonin, which can lower stress and improve focus. Studies show that daily habits—for example, brief mindfulness sessions, using a gratitude journal, and small acts of kindness—can rewire people’s neural pathways in ways that enhance cognitive clarity and long-term well-being. [Psych Today]On McKinsey.com. Employee well-being is an economic and organizational imperative, according to McKinsey Partner Barbara Jeffery and coauthors. McKinsey Health Institute research finds that aligning work with six modifiable health drivers—social interaction, positive mindsets, productive activity, stress balance, economic security, and sufficient sleep—could unlock $3.7 trillion to $11.7 trillion in global value. Employee self-efficacy, adaptability, and feelings of belonging at work are top predictors of good health among workplace factors. Employers can help their people thrive while driving sustainable economic performance by creating environments that support these predictors of good health.Build a thriving workforce
—Edited by Alexandra Mondalek, editor, New York
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