Consulting firm McKinsey & Company recently released results of its global survey on artificial intelligence (AI). The survey’s findings show an increase of nearly 25 percent in AI adoption and a “sizable jump” in its use across multiple parts of the business. And the story does not end there. The financial impact that AI is having on businesses is undeniable, with the majority of executives surveyed reporting an “uptick in revenue” and 44 percent realizing a reduction in costs.
At the same time, according to the McKinsey article, “Much work remains to scale impact, manage risks, and retrain the workforce.” Below we take a deeper look at the McKinsey survey’s results and provide some insight on what “high performers” are doing to lead the way.
AI Return on Investment
According to the McKinsey Global AI Survey, 63 percent of respondents reported an increase in revenue as a result of implementing artificial intelligence into their business. For most, these gains happened in specific departments within the company, including marketing and sales, product and service development, and supply-chain management, according to the survey results. For marketing and sales, in particular, companies are using AI to more effectively price products, provide more precise sales forecasting, better predict buying behaviors, and perform customer-service analytics to deliver a more personalized customer experience.
AI Adoption on the Rise
When it comes to the adoption of AI, more than half of the McKinsey survey respondents reported the implementation of the technology in at least one business process or product in at least one business unit. What’s more, 30 percent of survey respondents said that their companies use AI in products across multiple business units, compared with 21 percent reported in the previous year’s survey. From an industry perspective, the McKinsey survey found that AI’s adoption spans across virtually all industries with retail seeing the biggest increase at 35 percent year-over-year. Finally, 74 percent of survey respondents said they would increase their investments in AI over the next three years.
High Performers Excel at AI Best Practices
It should come as no surprise that high-performing companies—those that derive more business value from the implementation of AI—share some common traits. According to McKinsey’s analysis of this year’s survey results and those of years’ past, core best practices include the proper alignment of AI with corporate strategy and between business, IT and analytics leaders within the company, as well as investing in the right talent and skills development tools for employees. Without these, according to McKinsey, most companies typically fail to capture the maximum value that AI can deliver to the business.
To learn more, including how to mitigate AI risks, you can find the complete McKinsey & Company article here.