Technology, talent, and decarbonization have been at the forefront of discussions this year. On The McKinsey Podcast, we delved deep into these topics and more, hearing from McKinsey partners about the pivots in global business and the strategies for the future.

Uncover Insights on 2024's Key Trends

Technology: The Agentic AI Revolution

The idea of an AI system with agency, capable of making decisions without human intervention, is truly revolutionary. Many Fortune 500 companies still rely on antiquated software systems, often over 20 years old. Without modernization, they miss out on cutting-edge technologies like agentic AI and risk being left behind. This transformation in the business world, as seen in the publication "AI for IT modernization," is a brand new era. It's not just about having the technology but also about embedding responsible AI practices into business plans and processes.

Technology: Navigating Geopolitical Disruption

McKinsey's article "A proactive approach to navigating geopolitics is essential to thrive" highlights the importance of seeking and seizing opportunities in the face of geopolitical upheaval. Business must adapt and innovate to stay competitive in this changing landscape. Both "AI for IT modernization" and this geopolitical article are available online and in the show notes.

Talent: The Key to Technological Innovation

Senior partner Kate Smaje emphasizes that people are the key to innovating with technology. Organizations that achieve human breakthroughs along with technological ones move ahead faster. In the future of work, thinking strategically about the role of humans is crucial. As we look ahead, senior partner Aaron De Smet points out that soft skills like having caring leaders, meaningful work, and a sense of inclusivity matter most to talent, especially gen AI talent.

Talent: Diversity in the Workplace

Senior partner Alexis Krivkovich stresses the importance of diversity on every CEO's to-do list. By writing down the people they sponsor and mentoring and grading the diversity of the list, leaders can become more aware of their biases. Most leaders are men, and there is still work to be done in promoting diversity. Senior partner Lareina Yee also highlights that women are often ready and waiting but may not always be given the opportunity to shine.

Consumers: Wellness in an Aging World

With an aging population, wellness is on the minds of many consumers. The demand for wellness products is growing, with the industry reaching $1.8 trillion worldwide. McKinsey partner Anna Pione notes that consumer priorities have changed since 2020, moving from "clean and natural" to clinical effectiveness and science-backed products. Companies must study consumer data to understand their changing tastes and engage with them in new ways.

Decarbonization: Enhanced Rock Weathering

Senior partner Mark Patel discusses the approach of enhanced rock weathering (ERW), where rocks are spread on soil to store carbon naturally. This centuries-old practice is now being embraced by many companies as a large-volume removal of CO2. At this year's UN Climate Change Conference (COP), carbon was a top concern, and attendees reached an agreement on carbon markets. McKinsey partner Alexis Trittipo emphasizes the need to focus on both adaptation and mitigation in the fight against climate change.

Reading List for 2024

Senior partner Yuval Atsmon recommends Ray Kurzweil's "The Singularity Is Nearer." The book explores how technology has changed over the past 20 years and reminds us of the power of exponential evolution. While not all of the ideas persuade, it's a powerful read that makes us think about the future. Senior partner Kweilin Ellingrud recommends "Tribal Leadership" by David Logan, John King, and Halee Fischer-Wright. The book combines research and stories to explain the importance of culture in teams and organizations. Senior partner Sven Smit recommends "God's Debris" by Scott Adams and "Lifespan: Why We Age–and Why We Don’t Have To" by David Sinclair. The former explores the meaning of life from various perspectives, while the latter gives hope for a longer life through understanding aging.