• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
CommentaryConsulting

The AI reset is here — and every industry should be worried

By
Carolyn Dewar
Carolyn Dewar
Down Arrow Button Icon
By
Carolyn Dewar
Carolyn Dewar
Down Arrow Button Icon
March 18, 2026, 10:30 AM ET
dewar
Carolyn Dewar is a senior partner in McKinsey & Company’s Bay Area office. She leads the global CEO Practice.courtesy of McKinsey

I recently sat with the leadership team of one of the highest-performing med-tech companies in a major private equity portfolio.

Recommended Video

I asked each executive to physically stand in a spot representing how much of their business they believed would need to be completely redesigned by 2026 to win in the AI era.

Every single one stood between 80% and 100%.

The team was shocked and relieved all at once — because they were glad their peers saw the magnitude of what they saw too and were ready to act.

The CEO said something that stayed with me:

“We’re in a position right now, given our performance and assets, to take charge of this and reimagine our future ourselves. If we wait, it will be done for us — and we won’t like that answer.”

That is the choice many leadership teams now face.

Headlines have called it a “SaaSpocalypse.” That’s hyperbole. What’s actually happening is a structural reset — one that forces leaders to rethink how their companies operate and win.

SaaS is simply the first place we can see the reset. Not only because of its economics, but because software is so malleable. Code can be rewritten. Interfaces regenerated. Entire workflows collapsed.

Other industries will feel the same pressures, just on a slower timetable.

For two decades, the software playbook barely changed: build tools, sell seats, add features, renew. AI doesn’t eliminate the customer need those products serve, but it radically changes how that need can be met.

Which means many companies now must rethink not just their products, but how the entire enterprise works.

Among the companies I advise, responses are already diverging.

Some leadership teams are leaning into this moment. Others, however, are cautiously adding AI features, doing pilots, and hoping the underlying model holds.

The difference is rarely technology. It is leadership posture.

And posture becomes visible very quickly.

The teams moving decisively tend to share five instincts:

They Stay Anchored in Purpose

When everything else suddenly feels negotiable — products, pricing, operating models — purpose becomes a stabilizing force.

The most thoughtful leaders start by asking a deceptively simple question: “If we were founding this company today, knowing what AI can now do, how would we solve this problem for customers?”

Products, pricing, organization design, and operating models can all change if they remain anchored in the problem the company exists to solve.

They Name the Scale of Reinvention Early

The “80–100%” exercise was not theatrical. It was clarifying.

Once every executive physically stood in that corner of the room, there was no ambiguity about the magnitude of change they were committing to pursue. The conversation quickly moved beyond technology to product architecture, pricing models, cost structures, talent mix, and capital allocation.

Naming the scale of reinvention early forces alignment. The real risk is assuming you have more time than you do.

They’re Not Afraid to Cannibalize Themselves

Some of their own products will not survive what is now possible — and the best leaders know it.

When electricity arrived, we no longer needed gas lamps. When Netflix shifted from DVDs to streaming, the transition was uncomfortable — but necessary.

Self-disruption fails because organizations are built to defend the current model — not dismantle it.

Which makes the willingness to cannibalize your own revenue streams one of the defining leadership tests of the next decade.

They See Incumbent Strengths as Advantages

Many established players worry they are too encumbered to compete with clean-sheet startups. Scale does bring legacy drag.

But incumbents also possess advantages startups cannot quickly replicate: trusted customer relationships, regulatory expertise, embedded workflows, proprietary data, and capital.

Those assets don’t eliminate the need to reinvent. But they can provide a powerful head start — if leaders are willing to use them.

They Put Serious Operators on the Future

The clearest difference is where leadership attention actually goes.

In one company we discussed, the “number twos” now run day-to-day operations. The most senior leaders are instead spending the majority of their time redesigning what the company should look like going forward.

That’s not symbolic — it’s a deliberate structural choice about where scarce leadership time flows.

Reinvention at this scale cannot be a side project. The real question is not technology. It’s whether the company is actually organized to pursue the future while still running the present.

If your best leaders are fully consumed running the current model, the future model will lag.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
By Carolyn Dewar
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon
Carolyn Dewar is a senior partner in McKinsey & Company’s Bay Area office. She leads the global CEO Practice and is the co-author of A CEO for All Seasons: Mastering the Cycles of Leadership (2025) and CEO Excellence: The Six Mindsets That Distinguish the Best Leaders from the Rest (2022).
 

Latest in Commentary

Elon Musk sits with his fists together, looking up.
Commentaryspace
SpaceX will be worth trillions, but the space station that made it possible is worth even more — if we don’t squander it
By Tejpaul BhatiaMay 20, 2026
13 hours ago
trader
CommentarySoftware
The 50-year-old law that governed every software company just broke. Here’s what replaces it
By Martin Casado and Abhishek NagarajMay 20, 2026
22 hours ago
FJ Campbell, MD, is chief medical officer at Ardent Health.
CommentaryHealth
A doctor shortage is coming. AI could be the only realistic fix
By FJ CampbellMay 20, 2026
24 hours ago
trump
CommentaryCongress
Milken-Harris Poll: 80% of Americans want AI workforce programs now — and Washington hasn’t delivered
By Karen Kornbluh and Libby RodneyMay 20, 2026
1 day ago
‘Change the World’ idealism is dying in Silicon Valley. We’ll miss it when it’s gone
CommentarySilicon Valley
‘Change the World’ idealism is dying in Silicon Valley. We’ll miss it when it’s gone
By Jonathan WeberMay 19, 2026
2 days ago
reorgs
CommentaryRestructuring
We found the real reason 70% of transformations fail
By Julia Dhar, Kristy R. Ellmer and Philip JamesonMay 19, 2026
2 days ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
2 days ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
20 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
4 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
9 days ago
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
Workplace Culture
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
By Preston ForeMay 19, 2026
2 days ago
Current price of oil as of May 20, 2026
Personal Finance
Current price of oil as of May 20, 2026
By Joseph HostetlerMay 20, 2026
21 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.