State of AI in 2024; McKinsey survey reveals key insights for CIOs
In 2024, businesses worldwide are not just exploring generative AI (gen AI); they are leveraging it to drive significant business value. According to the latest McKinsey Global Survey on AI, 65% of organizations report regular use of gen AI, nearly doubling the adoption rate from just ten months ago. The enthusiasm for gen AI’s potential remains strong, with three-quarters of respondents anticipating substantial or disruptive changes in their industries.
The surge in interest in gen AI has brought broader AI capabilities into the spotlight. Over the past six years, AI adoption among surveyed organizations held steady at about 50%. This year, however, it has jumped to 72%, with professional services leading the charge in increased adoption. Gen AI’s influence extends beyond professional use. More respondents than ever report using gen AI both at work and in their personal lives compared to 2023.
Organizations are now channeling significant portions of their digital budgets into gen AI. In many industries, investments in gen AI are comparable to those in traditional analytical AI solutions. However, larger portions of budgets are still being allocated to analytical AI. Looking forward, 67% of respondents anticipate increased AI investments over the next three years.
The survey highlights the business value generated by gen AI across various functions. The most notable cost savings are reported in human resources, while supply chain and inventory management see the most significant revenue increases (over 5%). For analytical AI, cost benefits are most apparent in service operations, with meaningful revenue boosts from marketing and sales.
As the benefits of gen AI become more evident, so do the associated risks. Organizations face challenges ranging from data privacy and bias to intellectual property infringement and inaccurate outputs. About 44% of respondents have experienced negative consequences from gen AI, with inaccuracy being the most common issue, followed by cybersecurity and explainability concerns.
The survey examined how organizations are deploying generative AI tools and identified three main implementation strategies:
Most organizations find off-the-shelf gen AI models sufficient for their needs, with about half of the surveyed businesses using these models with minimal or no customization. However, respondents from energy and materials, technology, and media and telecommunications sectors are more inclined to extensively customize existing models or develop proprietary ones to cater to their specific business demands.
领英推荐
Insights from Gen AI leaders
Despite being in the early stages of gen AI adoption, some organizations are already seeing meaningful contributions to their earnings.
Organizations leading in gen AI adoption are utilizing the technology across more business functions. They are particularly active in marketing, sales, product development, risk management, legal, compliance, strategy, and corporate finance. These high performers are more vigilant about managing risks associated with gen AI and are experiencing a broader range of benefits from their investments.
Despite their success, high-performing organizations face significant data-related challenges. About 70% report issues with data governance, rapid data integration into AI models, and insufficient training data.
High-performing organizations are proactive in managing gen-AI-related risks. These companies report higher instances of negative consequences, including cybersecurity threats and privacy issues, yet they are more diligent in addressing these risks. They also consider regulatory compliance, environmental impacts, and political stability in their risk management strategies.
As CIOs navigate the complexities of gen AI adoption, the experiences of early adopters provide valuable insights. Leveraging these learnings can help organizations maximize the benefits of gen AI while effectively managing its risks, paving the way for transformative business outcomes in 2024 and beyond.
Source: McKinsey
About Wire19
Wire19?is your one-stop IT news portal dedicated to the digital transformation brought about by cloud and advanced technologies like Artificial Intelligence, Machine Learning, Virtual Reality, the Internet of Things (IoT), and more.
Follow us on Twitter or Sign up for our Newsletter to stay updated on what's trending in the world of technology.