In the high-stakes arena of corporate operations, chief operating officers are confronting a pivotal shift: agentic AI’s promise to automate entire workflows and deliver measurable bottom-line gains. McKinsey senior partner Azam Mohammad asserts, “This is the year of agentic AI, where we are automating entire workflows.” His guidance, drawn from client implementations, urges COOs to move beyond scattered pilots toward domain-wide reimagination, blending predictive machine learning, generative AI for insights, and agentic systems for execution.

Agentic AI stands apart by perceiving context, reasoning through multistep challenges, and acting independently across systems. Unlike earlier tools, these agents coordinate tasks, adapt dynamically, and integrate with operational technology, unlocking efficiencies in manufacturing yield or energy optimization within 8-10 months, per McKinsey analysis. Yet, as Mohammad notes, success demands prioritizing high-value domains while balancing quick wins against longer horizons like resource exploration, which may take 3-4 years.

Current deployments reveal stark disparities. While 80% of firms experiment with AI, only 1% capture significant enterprise value, according to McKinsey surveys. COOs who adopt a “factory mindset”—componentizing code, building reusable product families—achieve better, faster, cheaper outcomes, as seen in client AI factories.

Domain Prioritization Drives Quick Value

COOs must reimagine end-to-end workflows, Mohammad emphasizes: “The first stage of going through an AI transformation is to reimagine domains and prioritize domains by value.” In resources, production optimization yields rapid throughput gains, while data-intensive exploration builds sustained impact. Existing OT-IT infrastructure, often underutilized, fuels this shift, creating organizational momentum without massive overhauls.

Phased approaches mix immediate returns—yield improvements in 8-10 months—with transformative plays. McKinsey’s earlier report highlights COOs defining operating structures, data governance, and change programs to scale gen AI agents, automating shift handovers in factories to curb miscommunication and delays.

Banking offers a vivid case: McKinsey identifies ten domains for agentic overhaul via nine “operations transformers”—reusable, composable agents embedding institutional knowledge. A collaborative report by Azam Mohammad and partners projects workflow optimization, cost cuts, and productivity surges over the decade.

Factory Mindset Scales AI Deployment

“Adopt a factory mindset,” Mohammad advises. “We have implemented AI factories with some of our clients, where you build this for scale right from the get-go.” Componentized code and reusable blocks enable iterative improvements, mirroring manufacturing lines where agents handle predictive maintenance or real-time scheduling, slashing logistics costs over 20% in advanced industries, per McKinsey.

QuantumBlack’s analysis of 50+ builds underscores reimagining workflows over isolated agents. A bank modernized its core system—previously a $600 million manual slog—using agents for coordination, yielding breakthrough gains. Yet, Gartner warns 40% of projects may falter by 2027 without disciplined governance.

The agentic AI mesh emerges as critical infrastructure: composable, distributed architectures enabling vendor-neutral orchestration. McKinsey’s Seizing the Agentic AI Advantage details how this governs custom and off-the-shelf agents, curbing technical debt.

Change Management Seals Adoption

“Ultimately it comes down to use equals value,” says Mohammad. Over 80% of McKinsey’s Lighthouse firms embed front-line capability building. Senior leaders sponsor with “What if?” probes; top 100 champions ensure delivery; domain-led talent bridges tech and operations.

Front-line adoption falters without this. In banking, agentic fleets rewire ten domains holistically. Deloitte echoes: Toyota reimagines operations, treating agents as workers. Forbes predicts 2026 agentic dominance in logistics, with end-to-end management.

Challenges persist—hallucinations, interoperability—but 2026 forecasts from Forbes and CIO Dive signal maturation, with CIOs prioritizing bounded autonomy and governance agents.

Enterprise Rewiring Ahead

McKinsey’s agentic organization pillars—business model, operating model, governance, workforce, tech—forecast human-AI symbiosis. In retail, Microsoft agents automate functions; Veeva rolls out industry-specific agents through 2026.

COOs steering this—phasing domains, factories, change—position firms for supremacy. As Mohammad concludes, purposeful infrastructure unlocks value, propelling operations into an agentic era of unmatched efficiency and agility.