Alex Singla
McKinsey commentary
Senior partner and global coleader of QuantumBlack, AI by McKinsey
In 2024, generative AI (gen AI) is no longer a novelty. Nearly two-thirds of respondents to our survey report that their organizations are regularly using gen AI, nearly double what our previous survey found just ten months ago, and four in ten are using gen AI in more than two business functions. The technology’s potential is no longer in question. And while most organizations are still in the early stages of their journeys with gen AI, we are beginning to get a picture of what works and what doesn’t in implementing—and generating actual value with—the technology.
One thing we’ve learned: the business goal must be paramount. In our work with clients, we ask them to identify their most promising business opportunities and strategies and then work backward to potential gen AI applications. Leaders must avoid the trap of pursuing tech for tech’s sake. The greatest rewards also will go to those who are not afraid to think big. As we’ve observed, the leading companies are the ones that are focusing on reimagining entire workflows with gen AI and analytical AI rather than simply seeking to embed these tools into their current ways of working.
For that to be effective, leaders must be ready to manage change at every step along the way. And they should expect that change to be constant: enterprises will need to design a gen AI stack that is robust, cost-efficient, and scalable for years to come. They’ll also need to draw on leaders from throughout the organization. Realizing profit-and-loss impact from gen AI requires close partnership with HR, finance, legal, and risk to constantly readjust the resourcing strategies and productivity expectations.