AI is bringing the largest organizational paradigm shift since the industrial and digital revolutions (see sidebar, “The evolution of operating models”). This new paradigm unites humans and AI agents—both virtual and physical—to work side by side at scale at near-zero marginal cost. We call it the agentic organization. McKinsey’s experience working with early adopters indicates that AI agents can unlock significant value. Organizations are beginning to deploy virtual AI agents along a spectrum of increasing complexity: from simple tools that augment existing activities to end-to-end workflow automation to entire “AI-first” agentic systems. In parallel, physical AI agents are emerging. Companies are making strides in developing “bodies” for AI, such as smart devices, drones, self-driving vehicles, and early attempts at humanoid robots. These machines allow AI to interface with the physical world.
