May 17, 2020

The disruptive potential of AI: An industry breakdown from McKinsey

McKinsey&Company
AI
Artificial intelligence
Retail
Jonathan Dyble
1 min
AI
According to a new report from New York-based management consultancy McKinsey&Company, artificial intelligence techniques have the potential to crea...

According to a new report from New York-based management consultancy McKinsey&Company, artificial intelligence techniques have the potential to create between $3.5tn and $5.8tn in value annually across 19 industries.

The impact varies for each sector, with McKinsey estimating that this potential value amounts to between 1% and 9% of 2016 revenue.

Below is an infographic from McKinsey outlining the potential impact on each of these 19 industries, particularly showing the role that advanced analytics may have within this.

McKinsey&Company

Consumer-driven industries such as retail are likely to see the most benefit, largely due to the fact that both top-line-oriented functions, such as marketing, and bottom-line-oriented functions, including supply chain management, hold the greatest potential in terms of the impact AI can have.

This is because the frequency of interactions between businesses and customers in these industries generate larger amounts of data that AI can then work with. McKinsey highlights ecommerce platforms in particular as high potential on this basis.

McKinsey&Company

For more information, see the full report from Notes from the AI frontier: Applications and value of deep learning report from McKinsey.

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