Generative AI 2024: MCKinsey Report
The state of AI in early 2024: Gen AI adoption spikes and starts to generate value
Generative AI is rapidly becoming a cornerstone of digital innovation, offering unprecedented opportunities for growth and productivity. McKinsey’s comprehensive report sheds light on the economic potential and competitive advantages of this emerging technology.
Here are the pivotal insights:
Rapid Adoption of Generative AI
65% of organizations surveyed report regularly using generative AI, nearly double the percentage from just 10 months prior.
Three-quarters predict generative AI will lead to significant or disruptive change in their industries in the coming years
Generating Real Business Value
Business organizations are using Generative AI in more and more amount of business functions / functionalities.
- Organizations are already seeing material benefits like cost decreases and revenue increases in business units deploying generative AI.
- Respondents at senior levels show larger increases in using generative AI tools for work and personal use compared to mid-level managers.
AI is the most often used in sales & marketing
The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development.
Gen AI is cheaper and more effective
Organizations most often see meaningful cost reductions from generative AI use in HR and revenue increases in supply chain management.
Increased budget for Generative AI
In most industries, organizations are about equally likely to invest more than 5 percent of their digital budgets in generative AI and analytical AI.
