The potential of generative AI to create business value is enormous. To capture its full value, leaders must know how to harness and scale gen AI by making the right organizational shifts.
McKinsey research estimates that generative AI (gen AI) could contribute up to $4.4 trillion annually to the global economy. Across industries and functions, gen AI could be applied to help condense bureaucratic processes, improve customer journeys, and expedite coding and content creation. During a recent McKinsey Live, Partner Jessica Lamb and Senior Partner Gayatri Shenai discussed the potential of gen AI, the challenges associated with these tools, and tips for leaders when integrating gen AI into their businesses. Several important insights emerged, including:
- Technology alone doesn’t create value. The only way to reap the full benefit of technology is to combine deployment and scaling efforts with the right organizational shifts. Businesses need to be rewired to achieve the broad change necessary for them to harness digital and gen AI technologies. Leaders should develop a strategic road map to determine where gen AI can give them a real competitive value and guide their workforce during implementation. Leaders should also aim to update or advance their current tech stack to ensure it can support gen AI capabilities, and they should pressure test their data quality.
- Successful implementation of gen AI requires intentionality. Scaling AI is difficult for companies. Many businesses run pilots of gen AI or a single use case but struggle to achieve enterprise-wide adoption. Implementation requires leaders to consider how to plan for a rapidly evolving environment while managing risks. They should keep evolving AI regulations in mind as they develop AI frameworks with clear sets of policies, practices, and tools for the whole business.
- Companies shouldn’t lose sight of the human side of tech. The workforce is one of the most important elements of successful tech integration. Organizations will need to manage talent to stay ahead of gen AI skill gaps and get the most from their investment. They can invest in upskilling, build gen AI use cases into relevant and current workloads, and foster trust among employees to show them how gen AI can fit into their day-to-day work.
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For more on this topic, see A generative AI reset: Rewiring to turn potential into value in 2024.
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