OUR BEST IDEAS FOR THE C-SUITE

Welcome to the latest edition of The CEO Shortlist, a biweekly newsletter of our best ideas for the C-suite. This week’s issue focuses on two themes at the center of many conversations we heard at Davos: how human capability becomes a differentiator in the age of AI, and how Europe can strengthen its competitiveness in a more contested global economy. We appreciate the opportunity to connect and hope you find our perspectives useful and thought provoking. You can reach us at Alex_Panas@McKinsey.com and Becca_Coggins@McKinsey.com. Thank you, as ever.

—Alex and Becca

The human advantage. As AI accelerates, companies are entering what we call the brain economy—one where cognitive, social, and emotional capabilities become the primary sources of value as machines take on more rote work. New research from the McKinsey Health Institute and the World Economic Forum indicates that companies that deliberately strengthen these capabilities can achieve higher productivity, better decisions, and greater adaptability. For CEOs, the takeaway is simple: The next competitive edge will be built as much in brains as in algorithms.

Europe’s competitiveness moment. Europe now faces a pivotal test of its economic model. New research from the McKinsey Global Institute finds that while Europe retains deep strengths in talent, industry, and innovation, it is falling behind other regions in productivity growth, investment scale, and speed of execution—areas where smarter use of AI could make a real difference. Addressing these challenges will require faster innovation, better pathways to scale, and closer collaboration between companies and institutions. For CEOs, the challenge is practical: how to deploy AI at scale in ways that improve performance today while helping build the conditions for Europe’s long-term competitiveness. 

We hope you find these ideas helpful. See you in a couple of weeks with more McKinsey ideas for the CEO and others in the C-suite.

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