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. In this issue, we look at two arenas where hesitation carries a high cost: powering the AI boom and turning AI into growth. 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 need for data capacity? How much power will AI ultimately require? Beneath the question sits a real worry—that today’s rush to build data centers reflects irrational exuberance rather than durable demand. Our new research is reassuring. Even if AI adoption develops more slowly than expected, the power infrastructure going up to support data centers is unlikely to be stranded. The greater near-term risk may be the reverse: too little generation and transmission capacity. For power sector leaders, access to power—not compute—may become the scarcer resource.

Can AI accelerate growth? AI is beginning to change how companies pursue growth, though clear results remain rare. A handful of early movers are rewiring their commercial engines around it—Reckitt, for one, generated over $500 million in new revenue by sharpening pricing, promotions, and merchandising with AI. Our research makes the case that the payoff could be sizable for companies willing to move first.

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

MCKINSEY LIVE

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