The McKinsey Podcast

Quantum computing has long been technology’s white whale. But in recent months, new developments suggest practical applications for this elusive technology could finally be within reach. “Quantum has been five to ten years away from fruition for many, many decades,” says McKinsey Partner Michael Bogobowicz. “Now it feels three to five years away.” In this episode of The McKinsey Podcast, Bogobowicz joins McKinsey Global Editorial Director Lucia Rahilly to discuss how quantum differs from conventional computing, what its potential use cases are likely to be, and how to prepare for the highs and lows of a world that could move exponentially faster than it does today.  In our second segment we ask, what’s the most important factor in having a successful transformation? McKinsey Senior Partner Michael Bucy says it’s the CEO.   Articles mentioned: Navigating tariffs with a geopolitical nerve center The Global Trade Explorer Theme music composed, performed, and produced by Joy NgiawSee www.mckinsey.com/privacy-policy for privacy information

The fashion industry is facing significant challenges by 2025 due to climate change and shifting consumer values. Adaptability is crucial as brands navigate obstacles like trade uncertainties and changing preferences for quality. Digital shopping and AI are reshaping retail, pushing for personalized experiences. There's also a notable shift in consumer dynamics, especially with India's rising market and older consumers gaining importance. Sustainability remains a hot topic, with a call for collaboration to address environmental issues.

Chris Bradley, director of the McKinsey Global Institute, discusses the transformative forces reshaping the global economy. He introduces the concept of 'wizard' versus 'muggle' industries and explores how new arenas are redefining competitive landscapes. The conversation touches on critical elements for success, like platform establishment and investment dynamics, and highlights the importance of staying agile in markets influenced by rapid technological advancements. Lastly, the evolution of e-commerce reveals stark contrasts between online and offline retail trends.

Leaders are racing to scale AI, but this requires expanding data centers, which consume immense energy. The podcast dives into the challenges of building these facilities rapidly, the shift in their locations, and innovative cooling solutions needed to meet sustainability goals. It also discusses navigating the energy demands of data centers in the new AI economy, highlighting the urgency for investment and the exploration of renewable energy initiatives. Collaboration and resilient business models emerge as critical to addressing these challenges.

Navin Chaddha, managing partner at Mayfield Fund and an expert in early-stage AI investments, dives into the complex landscape of Generative AI adoption. He discusses the slow employee uptake of this technology and its implications for talent management and organizational structure. Chaddha highlights the promise versus reality of AI, emphasizing the potential for enhancing human creativity through hybrid collaboration. The conversation further touches on the evolving role of leadership as businesses adapt to AI, ultimately advocating for a hopeful future in the workforce.

Sven Smit, a Senior Partner at McKinsey specializing in tech trends, and Roger Roberts, also a Senior Partner focusing on semiconductors and digital trust, dive into the forefront of technology affecting business today. They discuss the rise of agentic AI, highlighting its potential in e-commerce and collaboration. The duo also explores the increasing role of robotics in various sectors and the urgent need for energy transition technologies. They emphasize the importance of developing a skilled workforce to meet the demands of the evolving semiconductor industry.

Ida Kristensen, a Senior Partner at McKinsey, sheds light on the pressing challenges CEOs face today, which have doubled in complexity since a decade ago. She discusses essential leadership traits like resilience and energy management, emphasizing the need for a 'leadership factory' to nurture effective leaders. Kristensen also breaks down the three key types of organizational resilience—financial, operational, and individual—using Best Buy as a compelling case study to illustrate adaptability and innovative practices in a changing landscape.

This year, insights on leadership and change take center stage. Experts discuss overcoming inertia in the face of shifting tariffs and the importance of aligning CMOs with CEOs. Mergers and acquisitions are examined as tools for growth. Banking leaders are urged to address geopolitical risks to find new opportunities. The role of AI is explored, highlighting onboarding for AI agents and the rising demand for data centers. A curious and continuous improvement culture is championed for successful leadership.

Jules Seeley, a Senior Partner at McKinsey specializing in travel strategy, explores the exciting potential of agentic AI in the travel industry. He discusses how AI could revolutionize booking by personalizing itineraries and rebooking disrupted flights, enhancing customer experience. Additionally, Seeley emphasizes the irreplaceable human element in travel, focusing on emotional experiences. He suggests a strategic approach for companies to adopt AI technologies while mitigating risks, and anticipates a future where travel planning will be more conversational and tailored to individual preferences.

In this insightful discussion, Daniel Swan, a McKinsey Senior Partner with expertise in operations and supply-chain transformation, delves into the evolving role of the COO. He reveals how COOs can balance immediate challenges with long-term tech integration, emphasizing the importance of generative AI in enhancing customer service and R&D. Swan also discusses boosting productivity through cross-functional collaboration, maintaining supply-chain resilience, and fostering a culture of continuous improvement. His insights highlight a future where COOs are pivotal in driving operational excellence.