Artificial intelligence is reshaping economies and labour markets, intensifying focus on what constitutes durable human advantage. As automation accelerates, competitiveness increasingly depends on the complementary strengths of human and machine intelligence. Central to this shift is the brain, the foundation of cognition, emotional regulation and complex decision-making. Brain capital is the combination of brain health and brain skills, arguing that stronger brains underpin stronger businesses, economies and societies. Despite its importance, the brain has long been underprioritised in policy and investment. Fragmented definitions, limited measurement tools and stigma surrounding mental, neurological and substance use disorders have constrained coordinated action. Advances in neuroscience and growing awareness of AI-driven disruption now frame investment in brain capital as an economic imperative rather than solely a health concern.
Safeguarding Brain Health Across the Life Course
Brain health is optimal brain functioning supported by healthy development and the prevention or treatment of mental, neurological and substance use disorders. Based on 2025 projections, brain health conditions account for 24% of the total global disease burden. The impact spans all ages, from neurodevelopmental conditions in childhood to neurodegenerative disorders in later life. The number of adults over 65 living with dementia reached 49 million in 2021.
The economic case for action is substantial. Scaling cost-effective interventions to prevent and treat brain health conditions could avert more than 260 million disability-adjusted life years globally by 2050 and generate up to $6.2 trillion (€5.26 trillion) in cumulative GDP gains. Safeguarding brain health requires three complementary actions: promoting healthy brain function and prevention across the life course, expanding access to evidence-based treatment and innovating to advance care.
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Early-life interventions, including quality prenatal and perinatal care, adequate nutrition and reduced exposure to toxic stress, shape neurodevelopment. In adulthood and older age, modifiable risk factors such as high blood pressure, unhealthy diets, physical inactivity and air pollution influence stroke and cognitive outcomes. Yet treatment gaps remain wide. In low- and middle-income countries, more than 75% of people with mental, neurological and substance use disorders lack adequate services. Limited workforce capacity, low public spending and fragmented delivery systems constrain impact. The report highlights the potential of scaling community-based care and using technology and AI to support providers as mechanisms to extend access and improve outcomes.
Fostering Brain Skills for a Changing Workforce
Brain skills are higher-order cognitive, interpersonal, self-leadership and technological literacy abilities that enable individuals to adapt, relate and contribute meaningfully. They include analytical thinking, creative thinking, resilience, empathy, leadership and curiosity. In the context of AI, these skills are increasingly central to productivity and performance. Survey data cited indicate that 59% of employees will require additional training by 2030 to meet evolving skill demands, with brain skills strongly represented among both current and future priorities.
Investment in early childhood yields strong returns. Quality programmes have demonstrated annual returns of 7–13% and benefit-to-cost ratios of up to 9:1 in low- and middle-income countries. Longitudinal evidence shows sustained improvements in wages for participants in high-quality early stimulation initiatives. Education systems can further strengthen executive function, self-regulation and persistence through sports, outdoor learning and project-based mentorship. As AI exposure among young people increases, alignment between education and evolving workforce needs becomes more urgent.
Workplaces are equally critical. Adults spend roughly a third of their lives at work, and more than one in five employees globally report symptoms of burn-out. Proactive investment in employee health, inclusive of brain health, could increase global GDP by up to 12% and generate $11.7 trillion (€9.93 trillion) in economic value. Brain skills such as adaptability and self-efficacy are leading determinants of thriving and performance. Integrating brain skills into leadership development, workflow design and AI adoption strategies can strengthen resilience, reduce absenteeism and enhance innovation. Organisations that embed brain capital into culture and performance systems are better positioned to sustain productivity amid constant change.
Studying, Investing and Mobilising Brain Capital
The concept of brain capital remains nascent and fragmented across disciplines. The report calls for establishing brain capital as an interdisciplinary field spanning biomedical sciences, education, economics, organisational science and technology. A shared research and measurement framework is considered essential to define progress and align investment. Existing dashboards illustrate early efforts to track national performance across brain health, skills and enabling environments.
Research and development funding is currently concentrated on late-stage treatment, while prevention, early detection and positive brain skills development receive comparatively less attention. A structured R&D pipeline is outlined, spanning foundational research, translation and adaptation, adoption and implementation and scaling. Sustained investment across these stages is presented as necessary to unlock advances in areas such as precision medicine, brain mapping and ageing science.
Financing mechanisms must adapt to long time horizons and perceived risks. The report highlights blended finance, public–private partnerships, grants and outcome-based instruments as tools to de-risk innovation and attract capital. Historical parallels with early clean energy markets illustrate how coordinated public and private action can mature emerging sectors.
Mobilisation is the final lever. Although global institutions have elevated brain capital on policy agendas, efforts remain fragmented. A coordinated movement supported by a dedicated entity is proposed to advance knowledge development, thought leadership, cross-sector alignment and shared metrics. Embedding brain capital into strategy, operations and culture across sectors is critical to translating awareness into sustained action.
Brain capital is a defining driver of prosperity in the age of AI. As economic value shifts towards ideas, algorithms and learning capacity, advantages rooted in physical assets and low-cost labour are diminishing. Resilience and long-term growth will depend on how effectively societies combine human intelligence with technological capability. Strengthening brain health and fostering brain skills offer measurable economic returns alongside improvements in well-being and social stability. Through five interconnected levers – safeguard brain health, foster brain skills, study brain capital, invest in brain capital and mobilise stakeholders – the report outlines a roadmap for building healthier populations, more adaptive organisations and more resilient economies.
Source: McKinsey Health Institute
Image Credit: iStock
