McKinsey’s 2023 Global Survey on AI shows rapid growth of generative AI (GAI) tools. Less than one year after many of these tools debuted, one-third of respondents say their companies are using GAI regularly in at least one business function; nearly one-quarter using AI say GAI is already on their board’s agendas; and 40% say their firms will increase investment in AI overall due to advances in GAI.
Some AI-related activities have been slower to materialize. Findings show that actions to stem GAI risks are still in their infancy, with less than half of respondents saying they are mitigating even the risk they consider most relevant: inaccuracy. The percent of companies adopting any AI tools held steady at 55% since 2022, with adoption focused on a small number of business functions.
Companies with stronger AI capabilities are leaders in exploring GAI potential. These “AI high performers” are outpacing others in adoption of GAI tools. They are using GAI in more functions than other organizations do, especially in product and service development and risk/supply chain management. They are less focused on cutting cost than other firms, and more focused on adding new businesses or revenue sources. They also highlight rising value of existing offerings through new AI-based features.
Business disruption from GAI is expected to be significant, with predictions of significant workforce changes. Respondents expect staff cuts in some areas and large reskilling efforts to address changing talent needs. In the past year, organizations using AI most often hired data engineers, machine learning engineers and AI data scientists. New roles in prompt engineering are emerging.
Three-quarters of respondents expect GAI to cause major/disruptive change in their industry’s competition in the next 3 years. Respondents in technology and financial services companies are most likely to expect disruptive changes from GAI, also the most benefits. Tech companies expect to add up to 9% to global industry revenue due to GAI, with knowledge-based industries such as banking (up to 5%), pharma/medical products (up to 5%) and education (up to 4%) the biggest beneficiaries. Manufacturing-based industries could see less disruptive effects, unlike previous technology changes that impacted manufacturing most. This is due to AI strengths in language-based activities, as opposed to those requiring physical labor.
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