Read the original research from McKinsey here.
Here is a brief summary of the article:
- The gap between digital and AI leaders and laggards has increased by 60% over the last 3 years
- Companies with leading digital and AI capabilities outperform laggards by 2 to 6 times across every sector analyzed
- Leaders implement digital and AI through a holistic set of hard-to-copy capabilities
- Laggards can catch up by committing to the hard work of rewiring how their companies run
- Digital and AI capabilities add up to real value, a trend that holds true for every sector analyzed
- Leaders in the retail banking sector achieved average annual TSR of 8%, versus 5% for laggards, between 2018 and 2022
- Leaders maintain and extend their advantage by better integrating digital and AI throughout the entire customer journey and dramatically reducing the cost to serve
- Compounding advantages of digital and AI contribute to the profit-and-loss edge and multiple expansions of leaders, resulting in significant TSR outperformance.
