McKinsey report shows productivity decline in 30% of companies using agentic AI
New Delhi [India], September 20 (ANI): In nearly 30 per cent of companies, productivity fell after teams began using agentic artificial intelligence tools, revealing operational hurdles amid the rapid enterprise adoption of autonomous coding systems, according to McKinsey’s Technology Trends Outlook 2026.
The report noted that the shift toward autonomous software tools presents operational setbacks when integrated without structural discipline. While developers rely on autonomous systems to automate development cycles, the actual gains remain uneven across industry deployments.
“Without a systematic approach, agentic software development can lead to unintended outcomes,” the report stated. “Our research finds that in 30 per cent of companies, productivity fell after teams began using agentic AI tools. Almost everyone, it seems, is ‘vibe coding’—but that doesn’t always lead to value.”
The findings highlighted that higher coding output does not automatically deliver business results. “In one study, AI tools increased coding activity by 180 per cent, but shipped releases rose by only 30 per cent, showing that more code doesn’t always lead to more products,” the report added.
Developer sentiment presents an additional friction point. Approximately 46 per cent of developers worldwide actively distrust the accuracy of AI tools, while only 33 per cent express trust, and just 3 per cent highly trust the outputs generated by these autonomous systems.
“Developer acceptance of agentic software tools remains a meaningful constraint,” the report noted. “Some 46 per cent of developers worldwide actively distrust AI tools’ accuracy, compared with 33 per cent who trust them, and only 3 per cent highly trust their outputs. For companies that want to reap the benefits of agentic software development, that trust gap matters.”
Despite these adoption obstacles, capital deployment expands rapidly. Equity investment in agentic software development companies grew from negligible levels through 2023 to roughly USD 5 billion in 2025, before crossing USD 61 billion in the first half of 2026, largely driven by a USD 60 billion acquisition of Cursor. Relevant job postings also rose 221 per cent between 2024 and 2025.
Overall technology spending reflects this trajectory, with AI infrastructure spending doubling in a single year and energy technologies drawing nearly USD 200 billion in investment during 2025 to meet power needs.
“This breakneck pace of change comes with challenges,” the report added. “Organizations are racing to deploy AI at scale without any proven road maps. They have workforces that need upskilling, legacy systems that need updating, and networks exposed to ever-evolving security risks.” (ANI)
