October 5, 2023
This week’s headline findings:
A McKinsey Global Survey that was in the field from August 31 through September 8 finds overall economic sentiment leaning more positive than negative for the second quarter in a row. But senior partner Sven Smit and coauthors note that differences emerge when results are examined on a regional level. European respondents report a more negative collective outlook than their North American counterparts. And while inflation fears remain top of mind across the globe, apprehensions about slowing economic activity in China have come to the fore for Asia–Pacific’s respondents. Private sector respondents were, on the whole, increasingly optimistic about their own companies’ prospects.
Advances in AI could profoundly alter how the travel industry serves customers, develops products, and manages operations. In collaboration with Skift Research, senior partner Ben Ellencweig and coauthors explain how AI can help travel companies use data to more narrowly segment customers, aiding efforts to hyper-personalize marketing and services. AI can also identify promising product niches while empowering workers to find operational solutions to complex problems.
In an episode of McKinsey’s Deal Volume podcast, partner Brian Vickery speaks with David Steinbach, global chief investment officer of Hines, one of the world’s largest real estate investors, developers, and service providers. Steinbach compares the upheaval of this real estate moment to the disruption that e-commerce brought to the retail sector. As city tax bases erode and office space tenants discover different needs, Steinbach predicts that real estate industry change will accelerate.
Further notable analysis from McKinsey:
The case study collection Rewired in Action illuminates companies that have launched digital transformations to build value. Supported by technical and industry expertise from McKinsey, these organizations have changed their trajectories through the integration of digital and AI.
A recent edition of the Inside the Strategy Room podcast features partner Emma Gibbs speaking with John Horn, professor of practice in economics at Olin Business School at Washington University in St. Louis, about his new book, Inside the Competitor’s Mindset (MIT Press, April 2023). Horn details how to predict competitors’ future moves by stepping into their shoes.
This briefing note, based on McKinsey’s latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.
Do these insights resonate with you? What else should we be writing about now? Tell us by emailing insightstoimpact@mckinsey.com.
