The Compound Loop: Why Agentic AI's Real Power Lies Beyond Generative AI

McKinsey’s 2025 research shows whilst 88% of organisations use AI, only 23% have successfully scaled agentic systems — and even fewer integrate disciplines beyond generative, limiting value to linear gains rather than exponential growth. In this article, I expand the agentic AI definition from “generative AI in a loop” to compound loops that coordinate multiple AI disciplines simultaneously, creating interaction effects that multiply capabilities, simplify governance through unified frameworks, and enable Boards to tackle broader business challenges for lasting competitive advantage.





