McKinsey just dropped their State of AI 2025 report on November 7. The data confirms what we've been tracking: AI agents are going mainstream, and companies are planning workforce cuts.

62% of organizations are at least experimenting with AI agents. 23% are scaling them in at least one business function. And 32% of companies expect workforce decreases over the coming year.

The math is simple: AI agents handle work. Companies need fewer humans. Jobs go away.

The Key Numbers

McKinsey State of AI 2025 - Key Findings

  • AI agents adoption62% experimenting or piloting
  • Scaling AI agents23% in at least 1 function
  • EBIT impact39% reporting impact
  • Workforce decreases expected32% of companies
  • No workforce change43% of companies
  • Workforce increasesOnly 13% of companies
  • High performers transforming50% redesigning workflows

What the Numbers Mean

AI agents are real and companies are deploying them now.

62% of survey respondents say their organizations are at least experimenting with AI agents - autonomous systems that can execute tasks without human intervention. Most are still in early stages (nearly two-thirds in experimentation or piloting), but 23% are already scaling them in at least one business function.

That 23% matters. These aren't tests anymore. These are production deployments replacing human work.

The EBIT Impact is Real

39% of respondents report some level of EBIT (earnings before interest and taxes) impact attributable to AI use. However, most say less than 5% of their organization's EBIT comes from AI.

Translation: AI is starting to move the profitability needle, but we're still in early innings. As adoption scales, that percentage will grow. And companies will realize more of that EBIT improvement comes from cutting labor costs.

The Workforce Impact Nobody Wants to Talk About

Here's the stat that matters most:

  • 32% expect workforce decreases over the coming year
  • 43% expect no change
  • Only 13% expect workforce increases

Nearly one in three companies surveyed are planning to reduce headcount. Less than one in seven are planning to hire.

And remember: This is what companies are publicly saying in a McKinsey survey. The real numbers are probably worse.

What AI High Performers Are Doing

The companies seeing the most AI impact (the "high performers") are doing something specific: They're redesigning workflows.

50% of AI high performers intend to use AI to transform their businesses. Most are redesigning workflows to eliminate steps that require humans.

They're not just automating existing processes. They're rebuilding processes from scratch assuming AI will do most of the work.

That's the playbook:

  1. Map current workflows
  2. Identify steps AI can handle
  3. Redesign the workflow to minimize human touchpoints
  4. Deploy AI agents to execute
  5. Reduce headcount to match the new workflow

Step 5 is the quiet part. But it's the inevitable outcome of steps 1-4.

Innovation Enabled, Jobs Eliminated

The report shows 64% say AI is enabling their innovation. That sounds positive until you realize what "innovation" means here:

  • Innovating new ways to operate with fewer people
  • Innovating processes that don't require human judgment
  • Innovating business models that scale without adding headcount

AI enables innovation. That innovation eliminates roles.

What This Means for You

If 32% of companies are planning workforce cuts and most are in early-stage AI deployment, what happens when more hit the 23% "scaling" phase?

The workforce impact will accelerate.

Companies are learning:

  • How to deploy AI agents at scale (23% have figured it out)
  • How to redesign workflows around AI (50% of high performers doing this)
  • How to capture EBIT impact (39% seeing it already)

Once the playbook is established, adoption spreads fast. And every company that successfully reduces headcount through AI encourages ten others to try.

The Bottom Line

McKinsey's data shows AI agent adoption moving from experiment to production. 23% are scaling. 32% are planning workforce cuts. And AI high performers are redesigning workflows to eliminate human steps.

This isn't speculation. This is what companies are publicly reporting.

If your job involves repetitive tasks, process execution, or predictable workflows, you're in the crosshairs. Companies are actively figuring out how to operate with fewer people.

The only question is: Are you preparing for it, or hoping your company is slow to adopt?

Original Sources: McKinsey / Stephen's Lighthouse

Published: 2025-11-07