McKinsey China Chief: AI Profit Gains Remain Elusive for Most Firms

A stark gap exists between corporate experimentation with artificial intelligence and its financial payoff, according to a senior McKinsey & Company leader. Speaking at the Consensus Hong Kong conference, Joe Ngai, Chairman of McKinsey Greater China, presented data showing that while 98% of companies are testing AI tools, a mere 5% report measurable profit improvements.

Ngai argued the primary obstacle isn't technology, but corporate structure. He described most modern organizations as hindered by layers of management and legacy processes. Instead of redesigning their operations for an AI-driven era, firms typically add small-scale pilots onto existing workflows, which fails to capture significant value. "The bottleneck of AI implementation is actually people," Ngai stated.

From his perspective in China, Ngai observes a more pragmatic approach. After a decade of intensive digitization, Chinese businesses focus less on theoretical models and more on practical application and integration. He noted particular momentum in "embodied AI," such as robotics and automation, predicting a "robot dividend" as the country's vast manufacturing base deploys machines to counter demographic shifts.

Ngai framed 2026 as a year of contrast, where CEOs balance geopolitical pressures and supply chain fragmentation against the urgent need for AI-driven transformation. The message to executives was clear: unlocking profit requires more than pilot projects; it demands a fundamental rethinking of how a company is built to work.

Source: CoinDesk