TODAY’S NEWS. TOMORROW’S INSIGHTS.A daily newsletter from McKinsey & Company
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
New software. With many businesses ready to embrace generative AI, tech companies are capitalizing on the moment. In recent months, multiple US tech corporations have announced the development of a suite of AI tools that will be able to take meeting minutes, evaluate written materials, and generate code. In June 2023, a San Francisco–based cloud computing leader debuted an enterprise software package that offers nine generative-AI-based services. The company charges clients $360,000 per year, on the low end, to use its product. [NYT]
Who’s in charge. For organizations experimenting with generative AI, one question looms large: Who is responsible for leading the way? The technology’s potential to transform processes throughout a company makes it tough to decide, executives explain. Some leaders are enlisting chief technology officers (CTOs) to prioritize AI projects, while others are establishing task forces and new AI-related roles. Earlier in 2023, a US tech company formed a ten-member AI council that includes staffers from its engineering, legal, and marketing divisions. [WSJ]
Trillions at stake. With its potential to add $2.6 trillion to $4.4 trillion of value annually, the business world’s excitement over generative AI seems well earned, McKinsey senior partner Aamer Baig and coauthors say. Today’s generative-AI boom offers a unique chance for CIOs and CTOs to guide the C-suite in turning the promise of generative AI into sustainable value for the business. It’s worth remembering, however, that while many companies may experiment with new technologies, creating significant business value is often much harder.
Nine actions. To learn how organizations can be successful with generative AI, McKinsey spoke with dozens of tech leaders and analyzed generative-AI initiatives at more than 50 companies, including our own. As more people use generative-AI tools, we have seen some CIOs and CTOs respond by blocking employee access to publicly available applications to limit risk. Such companies, however, may miss out on opportunities to innovate. Discover nine actions all tech leaders can take to create value, scale solutions, and manage risk for generative AI.
— Edited by Belinda Yu, editor, Atlanta
Was this forwarded to you? Sign up here.
Or send us feedback—we’d love to hear from you.
Follow our thinking
