McKinsey report reveals how artificial intelligence can deliver real value to companies

By Callum Rivett
Management consultancy firm McKinsey has identified how companies can rely on artificial intelligence to help drive earnings, as the technology begins t...

Management consultancy firm McKinsey has identified how companies can rely on artificial intelligence to help drive earnings, as the technology begins to deliver real benefits to early-adopters.

McKinsey Analytics' report details just how fast the artificial intelligence industry is growing - with giants such as Google and Baidu dominating, tech companies spent between $20-30bn on AI in 2016.

90% of that investment was spent on research and development and deployment, whilst the remaining 10% was on AI acquisitions.

In McKinsey's survey of 3,000 C-level executives, only 20% of respondents said that their company currently uses AI at scale or in a core part of their business.

RELATED STORIES

Additionally, many firms say they are currently unaware and uncertain about any possible business returns, with AI being deployed commercially in just 12% of cases.

The report also finds that companies who are early adopters of AI that combine strong digital capability with proactive strategy typically "have higher profit margins."

Companies that fail to embrace the growing AI trend look set to see the gap between them and early adopters continue to grow, with the latter already gaining significant competitive advantages.

AI also brings urgent challenges to business, says the report: the workforce has to be reskilled to work alongside AI and robotics, as opposed to competing with it.

Progress will also need to be made on the ethical, legal and regulatory challenges that currently face the implementation of artificial intelligence.

Share

Featured Articles

How Zscaler AI Innovation is Powering Data Protection

With its AI-powered Data Protection Platform, Zscaler is delivering cutting-edge innovations to provide comprehensive data security

How NetApp Unified Data Storage is Powering the AI Era

With powerful unified storage, NetApp is enabling organisations to accelerate AI innovation and unlock the full potential of their data assets

Tech & AI LIVE London – One Week to Go

Just one more week to go until Tech & AI LIVE returns to the virtual stage – May 21 2024

What Adam Selpisky’s Shock Departure Means for AWS

Digital Transformation

SAP & FC Bayern: Technology Drives Efficiency & Scalability

Digital Transformation

EY: Tech CEOs Double Down on Tech, Data & Cyber Investments

IT Procurement