McKinsey Talks Operations

Transforming R&D with AI: Breaking barriers and boosting productivity

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Sep 24, 2025
Ravi Rajamani, Managing Director and Global Head of AI Blackbelts at Google Cloud, and Ben Meigs, Associate Partner at McKinsey specializing in AI in R&D, discuss the urgent need to improve declining R&D productivity. They highlight how AI can revolutionize processes, from design to validation. The duo emphasizes strategic investments in AI, the importance of fostering a culture of experimentation, and the need for effective governance. They warn that early adopters of AI will gain a significant advantage, compelling organizations to act swiftly.
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INSIGHT

AI Can Reverse Declining R&D Returns

  • R&D productivity is declining as each dollar yields less innovation over time.
  • AI has potential to bend this curve by accelerating R&D processes across industries.
ANECDOTE

Google's 30% AI-Assisted Code Milestone

  • Sundar Pichai announced that 30% of Google's new code is AI-assisted and the figure keeps rising.
  • Ravi stresses engineers still review and accept AI-generated code, keeping human oversight central.
INSIGHT

Adoption Varies By Domain

  • AI adoption appears in pockets with more maturity in simulation and surrogate models.
  • Hardware engineering adoption lags but pilots and selective use cases are emerging.
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