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CEOs that keep innovating and are advanced users of AI see up to 4x revenue growth than those that don’t, says Paul Jenkins When there’s a period of uncertainty, it’s easy to retrench and focus on short-term gains. To freeze hiring, cut projects and hold off investments. And, it’s hard not to feel a gravitational pull when there is geo-political instability and UK GDP is growing at 0.1 per cent. On the surface, pulling back could seem a natural thing to do. Yet, many years of research shows the opposite: companies that invest in growth are doubling the return, and even quadrupling with AI, compared to those that don’t. These organisations are launching new products, services, and entirely new revenue streams. They are growing faster, breaking even sooner, and doing it with less capital. McKinsey’s sixth annual global survey on Corporate Venture Building reveals that the average age of a new venture passing the £7.5m mark has fallen from 38 months in 2024 to 31 months in 2025. Meanwhile, the average investment required to break even has fallen by 40 per cent. So, how are corporates building their own ‘start-ups’ faster? 1. Build innovation muscle The organisations seeing the biggest returns keep their entrepreneurial spark alive. They just keep building, in each wave of disruption. And, it pays off. Those who build three or more ventures see 1.9x revenue for every dollar invested, compared to 1.3x for those with only one of two. This success is because they built an ‘innovation muscle’. They’ve mastered the balance between speed and rigour. They know when to stop chasing a dead end. How to test, learn, and build again. They invest in training employees with the skills needed to scale new ventures, pairing structured learning journeys with AI-enabled skill assessments. It is this innovation muscle that is now the leading indicator of a venture’s potential success. Shifting the emphasis of success from previous years, when it was most important to have a C-suite champion, dedicated financial resources, and a systematic approach to evaluating success. 2. Use AI for growth, not just efficiency Serial innovators are turning to AI not just for efficiency, but for end-to-end business design, build and launch. Many start by using it to streamline workflows, track venture performance and speed up marketing launches. But the real shift happens when they deploy AI agents across the entire venture-building journey, from ideation and prototyping to building the new venture, and even running parts of the go-to-market plans. Those with an innovation muscle are also the most likely to be advanced users of AI. Here, 72 per cent use AI for more complex activities such as validating initial business concepts, accelerating software engineering and improving their go-to-market strategies by personalising marketing campaigns. This group of advanced AI users generate 4x the revenue of those that don’t use AI. 3. Think like a venture capitalist The most successful builders think like venture capitalists – moving even faster with AI. They diversify their bets, launching multiple ventures around proven concepts or existing assets. And, more often than not, it is within the industries they know best. Crucially, they use AI to test, launch, and scale faster, with a culture that encourages calculated risks. Amongst the successful venture launches, 68 per cent had leaders that actively encouraged experimentation. They know when to kill weak ideas early, scale proven ones fast, and recycle lessons from each build. Building a different kind of resilience The key takeaway: don’t stop building, build smarter. Those that keep investing are emerging leaner, faster, stronger. History proves it too: innovation follows uncertainty. World War I saw advances in aviation. Covid accelerated vaccines. Now, it’s AI and data driving the next growth curve. Paul Jenkins is senior partner, McKinsey & Company
