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THE DATA

The data on AI transformation and adoption

Independent research keeps arriving at the same conclusion: AI spreads through organizations quickly and pays off rarely. What separates the two groups is not which model they picked, but whether the work itself was redesigned. This page collects the three numbers that describe that picture, with their sources and with what each one actually means.

In short

  • 88% of organizations use AI in at least one function; only 39% can attribute any EBIT impact to it.
  • Only 21% of organizations using generative AI have redesigned a single workflow around it.
  • Gartner expects more than 40% of agentic AI projects to be cancelled by the end of 2027.
  • The common thread: the value comes from redesigning the process, not from adopting the tool.

Organizational AI use has more than quadrupled in eight years. In 2017 one organization in five used it; today nearly nine in ten do. The question is no longer whether it is in use, but whether it returns anything.

88%

Organizations using AI in at least one business function

39%

Organizations able to attribute an EBIT impact to it

21%

Organizations that redesigned a workflow around it

40%+

Agentic AI projects expected to be cancelled by end of 2027

Share of organizations reporting AI use in at least one business function, 2017–2025.

McKinsey, The State of AI (2025)

Three numbers that describe the picture

All three come from independent research; every figure names the study it was taken from.

88% → 39%

Adoption is wide, profit impact is not

88% of organizations now use AI in at least one function, but only 39% can attribute any EBIT impact to it. Adoption is not the bottleneck; measurable change is. When the tool is live but the way the work is done stays the same, the minutes saved never reach the books.
McKinsey, The State of AI (2025)
Organizations using AI88%
Able to show profit impact39%

a 49-point gap

88 of every 100 organizations use AI; 39 can show an impact on profit.
21%

The minority that redesigned the work

Only 21% of organizations using generative AI have redesigned a single workflow around it — and of every organizational change studied, workflow redesign correlates most strongly with profit impact. This is what distinguishes the companies that can point to a return.
McKinsey, The State of AI (2025)
21%Redesigned a workflow
79%Did not redesign one
21 of every 100 organizations using generative AI have redesigned a single workflow around it.
40%+

How projects that start wrong end

Gartner expects more than 40% of agentic AI projects to be cancelled by the end of 2027, driven by escalating costs, unclear business value, and inadequate risk controls. None of the three is a technology problem; all three are scope and measurement problems.
Gartner, June 2025
Agentic AI projects expected to be cancelled40%+

by the end of 2027

Gartner expects at least 40% of agentic AI projects to be cancelled by the end of 2027.

What the data is saying

Read side by side, the three numbers tell one story: adoption is not a technology problem.

Three ratios on one scale

Uses AI88%

of all organizations

Can show a profit impact39%

of all organizations

Redesigned a workflow21%

of organizations using generative AI

88% of organizations use AI and 39% can show a profit impact; of those using generative AI, 21% have redesigned a workflow.
  1. There is a 49-point gap between using AI and gaining from it

    Forty-nine points separate the organizations that have deployed AI from the ones that can show a return on it. That gap does not open between pilot and production — it opens inside the process. If the same approval chain, the same handoffs and the same reporting survive, the minutes saved never add up anywhere.

  2. What the winning group shares is redesign, not tooling

    Of every organizational change studied, redesigning the workflow correlates most strongly with profit impact. The question is not which model to use, but what this work would look like if it were built from scratch today. Few organizations ask it — and that is where the returns concentrate.

  3. Cancelled projects rarely fail technically

    The three causes Gartner names — escalating cost, unclear business value, inadequate risk controls — are consequences of decisions made at the start. When nobody defines which process is in scope, how success will be measured, and where a human stays in the loop, the project gets shut down even when the system works.

How we answer it

Every finding maps to a concrete step in our method. This picture is why we run a two-week diagnosis before a line of code is written.

AI is in use, impact is not measurable
We measure the current state first: how long each step takes, how often work changes hands, what each error costs. What gets discussed afterwards is not a claim of improvement but the same measurement, taken again.
A tool gets added, the process is left alone
We redesign the process first, then decide which step needs automation or a model. Choosing the tool is one of the last decisions, not the first.
Scope and risk controls are never defined
Before anything ships, we put the scope, the points where human approval stays, and the success criterion in writing. Because the team that sets the strategy is the team that builds the system, that definition survives into the build.

The common failure is starting in the wrong place, not building badly. Finding the right starting point decides more than the system you end up building.

Read our method

CONTACT

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