Review of McKinsey's State of AI in 2023

The McKinsey Global Survey's latest insights bring a seismic shift in the AI industry to the limelight. Generative AI, colloquially known as gen AI, is rapidly growing and playing a pivotal role in shaping organizational operations and industry trajectories. 

Gen AI Takes Center Stage

Despite being a relatively new entrant to the AI realm, generative AI tools have gained a strong foothold. Astonishingly, just within a year of their introduction, a third of the respondents report the regular use of gen AI tools within their organizational functions. More notably, AI is no longer a topic confined to the tech corridors. It has caught the attention of top-tier executives. Nearly a quarter of the C-suite executives have admitted to personally using these tools for their professional responsibilities, and more than a quarter claim that gen AI is a talking point in board meetings.

Investments and Applications

The transformative potential of gen AI is evident. As a result, 40% of the respondents expect to amplify their AI investments, primarily influenced by the advancements in gen AI. The applications are widespread: marketing, sales, product development, customer care, and back-office support. Remarkably, these domains also promise to harvest about 75% of the overall annual value from generative AI.

High Expectations, High Stakes

The corporate world's expectations from gen AI are sky-high. A striking 75% anticipate it to substantially change the competitive landscape of their respective industries in the next three years. Notably, the tech and financial sectors are the most optimistic about the disruptive potential of gen AI.

Risks and Challenges

While the benefits of gen AI are undeniable, the risks accompanying its implementation cannot be overlooked. Currently, the focus is on the advantages, with risk mitigation taking a back seat. Only 21% of the participants confirmed the establishment of policies governing gen AI use. Concerningly, risks related to inaccuracies, cybersecurity, and regulatory compliance are yet to be adequately addressed by many organizations.

AI High Performers: Leading the Way

Within this dynamic landscape, there exists a subset of organizations termed "AI high performers." These entities, which attributed at least 20% of their EBIT to AI in 2022, have shown a more aggressive and proficient adoption of gen AI. Their primary focus is not merely on cost reduction but on creating new business avenues and enhancing existing offerings using AI. However, even these trailblazers face challenges, particularly in ensuring consistent model performance over time.

The Workforce Dynamics

The proliferation of AI is inevitably leading to workforce transformations. While some may perceive AI as a threat to jobs, the study offers a different narrative. A significant portion of the respondents foresees reskilling initiatives rather than job cuts. Specifically, almost 40% of those adopting AI predict extensive reskilling of over 20% of their workforce in the coming years.

ServiceNow's Acquisition of G2K

ServiceNow shows that they are looking to stay ahead of the curve and provide their customers with AI advances by announcing in May that they are acquiring G2K. G2K's technology allows organizations to connect real-time data across storefronts and other physical spaces for a complete view of operational data. ServiceNow plans to add G2K's smart IoT technology to the Now Platform, enabling businesses to intelligently action digital and in-store data with enterprise-grade workflows. 

Speeding Your AI Adoption in ServiceNow

Your company will undoubtedly want to take advantage of AI and the AI functionality that ServiceNow provides. The need to deliver update sets, apps, and features on the Now platform at speed is greater now than ever. One of the most significant inhibitors to delivery velocity is environment inconsistencies. xtype eliminates environment inconsistencies which empower your teams to deliver at high velocity.

Conclusion

The McKinsey Global Survey paints a picture of an era dominated by gen AI. While the advantages are manifold, the road ahead is fraught with challenges, primarily related to risk management and workforce adaptation. Organizations must navigate this new landscape with a balanced approach, ensuring they harness the potential of gen AI while effectively addressing the inherent risks and challenges. The journey has just begun, and the final destination promises to be transformative.

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