From Theory to Practice: The Key Ingredients for AI-Driven Impact in the Public Service

Nicholas Fletcher, Associate Partner at McKinsey and its AI and data practice QuantumBlack, draws a vivid historical parallel between the Industrial Revolution and today’s AI transformation. He describes the evolution of textile factories in 19th-century Manchester, where a single steam engine powered entire floors through a complex web of pulleys and belts. When electricity first arrived, many factories simply swapped the central steam engine for one large electric motor, gaining only marginal benefits. True productivity gains came later, when manufacturers realised they could distribute small electric motors to each machine, redesigning factories to be flatter, faster, and more efficient. Nicholas uses this analogy to argue that organisations today must similarly rethink their entire operating model for AI, rather than simply inserting new tools into old structures.

He traces the rapid evolution of AI, from early experiments in the 1950s through to the deep learning breakthroughs of the 2010s and the…