New McKinsey research reveals a significant AI adoption gap. While 88% of organizations use AI, nearly two-thirds haven't scaled it beyond pilots, meaning they are not behind their peers. This explains why only 39% report enterprise-level EBIT impact. True high-performers succeed by fundamentally redesigning workflows, not just experimenting.

A critical error in AI integration is automating existing, often clunky, processes. Instead, companies should use AI as an opportunity to fundamentally rethink and redesign workflows from the ground up to achieve the desired outcome in a more efficient and customer-centric way.

The biggest gains from AI come not from automating steps in an existing process, but from starting with the desired outcome and co-creating a new workflow with AI. This "first principles" approach leverages AI's capabilities far more effectively than piecemeal automation.

Companies can either augment existing processes with AI for incremental efficiency (e.g., co-pilots) or completely redesign workflows. While augmentation is common, the most transformative value and disruptive business models will emerge from a clean-sheet redesign of how work is done.

Drawing a parallel to the slow adoption of PCs in the 90s, Boris Churney argues companies won't see AI productivity boosts by simply layering it onto old workflows. The biggest benefits come from placing AI at the core of the business and redesigning processes around its capabilities, eliminating old bottlenecks entirely.

The historical adoption of electricity in factories shows that true productivity gains came from redesigning the factory floor, not simply replacing steam engines. Similarly, companies must fundamentally re-engineer processes around AI to unlock its transformative potential.

The greatest value of AI isn't just automating tasks within your current process. Leaders should use AI to fundamentally question the workflow itself, asking it to suggest entirely new, more efficient, and innovative ways to achieve business goals.

Adding AI tools to current processes yields only incremental efficiency. To achieve significant business impact, leaders must rebuild their entire go-to-market system—roles, workflows, and data flow—with AI at the core, not as an add-on.

The true power of AI is unlocked by adopting an "AI First" approach. This means completely redesigning workflows with AI at the core, rather than simply using AI to accelerate existing processes. This shifts employees' roles from performing tasks to managing the AI agents that do the work.