How to build businesses faster and better with AI

Here is an excerpt from an article written by Chris Smith. Daniel Aminetzah, Fabian Metzeler,  Jason Bello,   Paul Jenkins, Alexander Ringler, and Melanie Krawina for McKinsey Quarterly. To read the complete article, check out others, sign up for email alerts, and obtain subscription information, please click here.

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Imagine a world in which billion-dollar companies are built by teams of fewer than a dozen people—or even by a single founder. What once seemed like science fiction is now becoming reality as artificial intelligence emerges as the new operating system of venture building.

This is not a marginal improvement or an efficiency gain. It is a fundamental rewiring of how businesses are conceived, built, and scaled. Just as the shift from mainframes to personal computers transformed knowledge work and the internet reshaped commerce and communication, AI is resetting the assumptions that have governed business building for decades. The constraints that once defined business creation—team size, capital requirements, and time to market—are being rapidly rewritten.

AI creates value for venture builders along three dimensions: It improves innovation cycles, enabling teams to generate, test, and validate more—and often better—ideas faster than ever before; it transforms productivity, allowing small teams to achieve what once required entire departments; and it accelerates velocity, shortening the time from concept to minimum viable product and reducing the capital required to reach market. Together, these gains make ventures that once appeared too risky or too costly increasingly viable.

For leaders, the question is no longer whether AI matters for business building but how to apply it in ways that deliver sustained performance. Those who treat AI as an add-on will capture incremental benefits at best. Those who rewire business building around AI as a foundational capability—with human expertise at the center—will pursue more ideas, validate them faster, and scale winners earlier, often with fundamentally different economics.

This article offers a practical playbook for leaders seeking to capture this opportunity. It begins with the evidence for AI’s impact on venture economics, explains how AI creates value across the venture life cycle, and then lays out three strategic shifts that distinguish high-performing AI-first ventures. For executives ready to act, it closes with concrete steps to begin rewiring venture building around AI as the new operating system.

The case for AI-first venture building

Even amid economic uncertainty, corporate venture building remains a top strategic priority. In McKinsey’s 2025 new-business building survey, 43 percent of leaders reported increasing their focus on venture building over the previous 12 months. At the same time, expectations have sharpened. With capital under greater scrutiny, leaders are under pressure to demonstrate returns more quickly and with greater capital efficiency.

That pressure is reshaping how companies approach business building. Performance expectations are rising, along with the need to improve the underlying economics of venture creation—reducing time to validation, accelerating time to revenue, and increasing output per dollar and per employee.

Recent results suggest significant progress. In 2025, 61 percent of corporate ventures generated more than $10 million in revenue, up from 45 percent in 2023. Our business-building survey found that the time required for new businesses to reach those revenue levels fell from 38 months in 2023 to 31 months in 2025. Among ventures that have already broken even, 61 percent did so within two years.

Artificial intelligence is a core driver of this performance shift. A McKinsey review of hundreds of ventures founded between 2018 and 2024 suggests that ventures launched in the AI era (2023–24) are achieving higher output with faster timelines, on both a per-person and per-dollar basis. While not every recent venture is AI native, the increasingly widespread use of AI appears to be materially compressing venture timelines and raising productivity.

Other researchers have reached similar conclusions. In a recent survey by early-stage venture capital firm Antler, 93 percent of companies reported that AI accelerated execution, with nearly half citing speed increases of up to fivefold.

AI is reshaping venture building not as a peripheral tool but as a practical driver of performance. When embedded in how ventures are designed and operated, AI creates value along three dimensions that matter most for venture economics: the breadth and quality of ideas that can be explored, the speed at which ventures move from concept to market, and the productivity that small teams can achieve.

In the material that follows, we explore each of these dimensions in depth.

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The AI-first future demands a call to action for venture builders. The operating system of venture building has changed. Leaders who move decisively on all three fronts—resetting performance expectations to demand step-change results, building the AI backbone that allows hybrid human–agent teams to operate from day one, and designing teams to encode and multiply expertise through AI—will capture disproportionate value. Those who treat AI as an add-on or delay action will find themselves competing against ventures that operate on fundamentally different economics. The time to act is now.

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Here is a direct link to the complete article.

 

 

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