This McKinsey report explores how work is shifting to a partnership between people, agents and robots – all powered by AI. While technologies could theoretically automate over half of current US work hours, it stresses this is not a forecast of job losses. Instead, roles and workflows will evolve, with an estimated 70% of today’s skills remaining applicable to both automatable and non-automatable work. With AI handling more common tasks, people will apply their skills in new contexts. The report introduces a new Skill Change Index highlighting which skills will be most and least exposed to automation in the next five years. It emphasises that the most effective leaders will engage directly with AI rather than delegating, invest in the human skills that matter most, and balance gains with responsibility, safety and trust. The outcomes for firms, workers, and communities will ultimately depend on how organisations and institutions work together to prepare people for the jobs of the future.