In the news. Using AI to automate tedious tasks at work may backfire, The Wall Street Journal reports. While employees can save working time with tools that, for example, summarize meetings or sort their emails, some find that more of their time is filled with cognitively demanding work. This shift can fuel cognitive overload and burnout instead of enabling strategic thinking and work–life balance. Overreliance on automated tools can also dull judgment and reduce practical learning. For companies, the challenge is harnessing the productivity benefits of AI without eroding employee engagement or critical thinking. [WSJ]

“I’m also optimistic about the rate of adoption because I think organizations are starting to realize, ‘I can’t just insert this technology. I have to change the way I operate.’”

—Eric Kutcher, senior partner, McKinsey

On McKinsey.com. AI is more than a mere productivity tool for businesses; it’s an existential change to how work is done. “This is probably the biggest, most complex business transformation—but it’s 80% business transformation and 20% tech transformation,” says Eric Kutcher, senior partner and chair of McKinsey’s work in North America, in an episode of The McKinsey Podcast. He believes the organization of the future will be flatter: so, companies will be built around human and agent hybrid workflows that require clearer objectives, far more human judgment, and fewer layers of management. Learn more about how the best leaders are meeting the AI moment and what skills are most critical for early-career talent in the AI age.

Lead the AI revolution

In the news. In 2025, work took a toll on mental health in myriad ways. According to Fast Company, mass layoffs, rapid AI adoption, and political turmoil left many employees feeling stressed and burned out. At the same time, well-being remains top of mind: One study of corporate benefits found that most employers cover mental healthcare, and workers are opting for flexible working conditions rather than climbing the career ladder. Emotional intelligence has also emerged as a critical skill, particularly for leaders who are responsible for translating awareness into healthier work environments. [Fast Company]

On McKinsey.com. Employee health has become integral to performance, with the potential to capture up to $11.7 trillion in economic value. But according to McKinsey’s Barbara Jeffery, Jacqueline Brassey, Lucy Pérez, and Darshini Mahadevia, many employers aren’t sure which actions or solutions to pursue. The authors’ McKinsey Health Institute research examined 115 workplace interventions, pinpointed some “no regret” actions, and found that the most effective interventions are embedded into daily work (such as digital nudges to take hourly breaks), reinforce leadership commitment, and target multiple dimensions of health.

Build a healthier workplace

Europe’s economic potential

In the news. Europe’s largest economy is sparking renewed (albeit, cautious) optimism in the continent’s economic outlook, notes the Financial Times. While headwinds from trade tensions, growing competition, and a strong euro persist, the more optimistic case now rests on this country’s domestic strengths, says one economist. Key among them is its fiscal policy, which could boost private-sector spending. Other positive signals include falling inflation, rising real incomes, lower energy costs, bolstered manufacturing, and improved investment prospects. [FT]

On McKinsey.com. Time is of the essence in Europe, where opportunities for competitiveness and investment are growing. The continent can avoid another decade of “secular stagnation” if standout private businesses, in strategic partnership with the public sector, build on renewed capital flows, say McKinsey’s Anna Kortis, Jan Mischke, Kim Baroudy, Solveigh Hieronimus, Sylvain Johansson, and Tunde Olanrewaju. If Europe roughly matches US investment and R&D spending levels, it could double its growth rate and increase household wealth. Just a few hundred more standout firms would close Europe’s growth gap with the US, which can be realized through a mix of five bold strategic moves.

Act boldly to transform Europe