In the news. Multiple trends could reshape critical industries over the next year, according to the Financial Times. Among the findings: defense companies are poised to benefit from increased military spending, while some European players may be publicly listed; in banking, a more relaxed regulatory stance in the US could widen global competitive gaps; technology investors are becoming more selective about AI bets; pharmaceutical companies face steeper competition in the weight-loss segment; and AI-generated music is raising questions related to revenues and copyright protection. [FT]

“Over the past three years, these 18 industries have grown roughly four times as fast as other industries in market cap and ten times as fast in revenue.”

On McKinsey.com. A new McKinsey Global Institute report also identifies trends in several increasingly important arenas of competition. These sectors—including AI software, future mobility, and digital commerce—could generate up to $48 trillion in annual revenues by 2040, with a small group of companies capturing a disproportionate share by moving early and scaling fast. Success depends on making bold, focused bets rather than spreading investments too thin, McKinsey’s Chris Bradley, Naveen Sastry, Kweilin Ellingrud, and coauthors note. That means leaders can improve their positioning by defining where to play, reallocating capital decisively, and building the capabilities to compete at scale in fast-evolving markets.

Capture emerging value pools

In the news. European countries are pushing to secure greater sovereignty over data centers and AI infrastructure amid geopolitical tensions and diverging regulations, Reuters reports. In Germany, a start-up plans to build a new AI data center that could eventually double the country’s domestically operated computing capacity. By the end of 2025, Germany had a total capacity of 530 megawatts—much of it under foreign operation. The new data center will rely on renewable energy and storage, underscoring a growing constraint: Power access is fast becoming a limiting factor for AI growth. [Reuters]

On McKinsey.com. The same dynamics are elevating “sovereign AI” onto government agendas worldwide. McKinsey’s Ali Ustun, Luca Bennici, and Melanie Krawina outline how sovereignty spans the full AI stack—from chips and cloud to models and applications—and is increasingly tied to economic resilience and national security. The implication for leaders: focus on where control drives advantage, form partnerships to close capability gaps, and align AI strategy with energy and infrastructure realities to enable secure, scalable deployment.

Shape your sovereign AI strategy

Gender parity stalls at the top

In the news. Progress on gender equality at top publicly listed companies in the UK remains slow, per The Guardian. The average number of women chief executives at companies on the FTSE 100 held steady last year, according to the FTSE Women Leaders Review. Within the FTSE 350, which includes midsize businesses, companies met their 40% target for board representation but fell short in top executive roles. Without stronger accountability—and changes to promotion and retention—progress may plateau before it translates into performance gains. [Guardian]

On McKinsey.com. Women who do reach the C-suite often share distinct leadership practices. Research by McKinsey Partners Aalia Ratani and Johanne Lavoie, Senior Partner Carolyn Dewar, and coauthors finds that these leaders anchor decisions in purpose, not pressure, and prioritize courage over comfort. They also build strong support networks, navigate organization dynamics intentionally, and ensure sustainable performance by managing their time and energy.

Close the leadership gender gap