The So What from BCG — BCG Presents: The CEO Radar (October 29, 2025)

Episode Overview

This edition of The So What from BCG, in collaboration with Bloomberg Media Studios, explores the pressing issues shaping CEO agendas globally, as revealed by analysis of over 4,500 Q3 earnings calls. Host Edward Adams (Bloomberg Media Studios) is joined by Rich Lesser (BCG Global Chair) and Vlad Lukic (Global Leader for BCG's Tech and Digital Advantage Practice). The discussion centers on the realities of AI adoption, the evolving nature of leadership amidst global uncertainties, and the impact of tariffs and geopolitical issues on business strategy.

Key Discussion Points & Insights

1. Tariffs and Policy: Shift from Uncertainty to Action

• Shifting Focus: While tariffs remained a top topic in Q3 earnings calls, conversation has moved from policy speculation to practical navigation and adaptation.
  • Quote: "Now it's about, okay, what are we going to do? [...] substantial tariffs versus anything we've dealt with historically in decades are now most likely here to stay, certainly as it relates to the US and now we have to navigate it." — Rich Lesser (01:43)
• Impact: Companies are forced to develop "geopolitical muscle," understanding and adapting not just at the tactical level, but across supply chains and business models.

2. AI Adoption: From Pilots to Value Creation

• Current State: Only a small subset (about 5%) of CEOs are truly integrating AI into their core businesses at scale; 30–40% are advancing, but about 60% struggle to move beyond pilots.
  • Quote: "It's a hard transition to make because on the one hand, you have to change your mindset about how you're going to translate AI into impact at scale, not just do interesting pilots." — Rich Lesser (02:28)
• Human Factor: The most challenging part is embedding AI in processes and leadership, not just technology.
• Bottom Line Results: The best-performing companies show clear ROI from AI, with tangible growth and operational improvements.
  • Quote: "The ones that have really leaned into AI are growing faster. The numbers are there." — Vlad Lukic (04:29)

3. Transparency & Signaling Around AI

• Public Acknowledgement: Some leading companies (e.g., insurers, mining companies, L'Oréal) openly discuss AI's impact on calls, using transparent communication to attract talent, reassure partners, and appeal to buyers.
  • Quote: "The CEOs need to signal both to their employees and partners in the broader ecosystem that they're on top of this." — Vlad Lukic (05:49)

4. AI and Jobs: Growth vs. Displacement

• Short-Term Observations: No active projects focus on reducing headcount; AI is currently more about enabling growth and new value propositions.
  • Quote: "Not a single one of them has a thesis on reducing the number of labor. It is about growth opportunities and growing the business." — Vlad Lukic (06:24)
• Long-Term View: Some displacement is inevitable (as seen in autonomous mining operations), but reskilling and embracing new roles is critical for relevance.
  • Quote: "If you embrace this and do it, you'd get a superpower and you can be more relevant." — Vlad Lukic (07:26)

5. Agentic AI: Hype vs. Reality

• Where We Are: True multi-agent, end-to-end automation is not yet practical due to accuracy limitations and the need for human intervention.
  • Quote: “You do need a human in between, that is interpreting and fine tuning the agents within those specific workflows. That's where we are.” — Vlad Lukic (08:06)
• Catalyst for Change: The agentic AI push has forced companies to confront infrastructure and data needs, spurring tech stack improvements.

6. AI Investment Decisions

• Market Correction Implications: Even if AI-heavy stock valuations were to drop, companies would persist in pursuing transformative AI adoption as the business case is compelling beyond market hype.
  • Quote: "I think it will have very little effect on the real economy. [...] Even if the market is overvaluated, there's no question AI's capabilities will continue to grow." — Rich Lesser (09:39)

7. Pilot Pitfalls: When to Persist and When to Drop

• Common Issues: Companies sometimes abandon AI pilots too soon or drag on with pilots that lack strategic relevance.
  • Quote: "If you know that there is a lot of value in that workflow, sweat it out, Stick with It, don't abandon it too soon, because the pace at which the new tools are coming is so, so high." — Vlad Lukic (11:05)
  • Quote: "Stop those much sooner [...] instead of creating zombies in the organization." — Vlad Lukic (11:05)
• Guidance: Focus AI deployments on core business operations where value creation is measurable.

8. Leadership Attributes in 2025: Resilience & Going Back to Basics

• Navigating Uncertainty: CEOs must be resilient, adaptive, willing to ask basic questions, and focused on core value delivery.
  • Quote: "This ability to take unexpected things and figure out how to navigate them and do it in a way that both anticipates as best you can, but then can respond quickly and adapt and then reimagine [...] critical in this world." — Rich Lesser (12:40)
  • Quote: "The really good ones went back to the basics, okay, what problem are we solving? For which customer? What will be the value created?" — Vlad Lukic (13:49)

9. Tariff Disruption as a Strategic Opportunity

• Business Reflection: The chaos of the tariff environment has prompted many leaders to reconsider their business fundamentals and reignite a passion for their core value propositions.
  • Quote: "It forced people to step back and think, okay, how do we make money in this business? Where are we relevant? What is the value we're delivering?" — Vlad Lukic (14:18)
• Building Geopolitical and Supply Chain Muscles: Heightened awareness and skill in navigating global risks and deep supply chain issues will serve organizations well into the future.

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------| | 01:43 | Rich Lesser | "Now it's about, okay, what are we going to do? There is still policy uncertainty. It's not that things won't shift, but now...we have to navigate it." | | 02:28 | Rich Lesser | "It's a hard transition to make because on the one hand, you have to change your mindset about how you're going to translate AI into impact at scale, not just do interesting pilots." | | 04:29 | Vlad Lukic | "The ones that have really leaned into AI are growing faster. The numbers are there." | | 05:49 | Vlad Lukic | "The CEOs need to signal both to their employees and partners in the broader ecosystem that they're on top of this." | | 06:24 | Vlad Lukic | "Not a single one of them has a thesis on reducing the number of labor. It is about growth opportunities and growing the business." | | 07:26 | Vlad Lukic | "If you embrace this and do it, you'd get a superpower and you can be more relevant." | | 08:06 | Vlad Lukic | "You do need a human in between, that is interpreting and fine tuning the agents within those specific workflows. That's where we are." | | 09:39 | Rich Lesser | "I think it will have very little effect on the real economy. It'll obviously have a massive effect on the stock market [...] but not on real adoption." | | 11:05 | Vlad Lukic | "If you know that there is a lot of value in that workflow, sweat it out, Stick with It, don't abandon it too soon, because the pace at which the new tools are coming is so, so high." | | 12:40 | Rich Lesser | "This ability to take unexpected things and figure out how to navigate them and do it in a way that both anticipates as best you can, but then can respond quickly and adapt and then reimagine…critical in this world." | | 13:49 | Vlad Lukic | "The really good ones went back to the basics, okay, what problem are we solving? For which customer? What will be the value created?" | | 14:18 | Vlad Lukic | "It forced people to step back and think, okay, how do we make money in this business? Where are we relevant? What is the value we're delivering?" |

Timestamps for Key Segments

• Tariffs and Policy Shifts: 01:30–02:17
• AI Adoption Bell Curve: 02:28–03:41
• Organizational Disconnect in AI Implementation: 03:41–04:12
• Proof of AI Impact & Public Disclosure: 04:29–05:49
• Is AI a Job Killer?: 06:16–07:26
• Agentic AI: Current State: 07:45–09:13
• AI Investment in a Stock Market Downturn: 09:13–10:18
• AI Pilot Best Practices: 10:54–12:04
• Leadership Attributes in 2025: 12:30–14:14
• Tariffs as Strategic Catalyst: 14:14–15:15

Takeaways for Leaders

• The agenda for CEOs is decisively shifting from speculation to action around persistent challenges like tariffs and transformative tech like AI.
• Real economic transformation with AI requires moving past pilots to embedded, large-scale business applications, focusing persistently on value.
• Transparency in AI adoption is becoming vital for talent, investors, and partners.
• Despite AI’s efficiencies, the immediate focus is business growth—not layoffs; reskilling is critical for long-term workforce adaptation.
• The best CEOs are both resilient and courageous about asking basic questions, keeping strategy connected to value creation fundamentals—even (and especially) during periods of external shock.
• The turbulence of today—whether geopolitical or technological—is an opportunity to sharpen organizational focus and build lasting strategic strengths.