'Firms embrace AI and see economic benefits'

How is artificial intelligence (AI) reshaping the business world? That is the question global consultants McKinsey address in their latest report, The State of AI: How Organizations Are Rewiring to Capture Value.

- DYLAN JONES EVANS

Based on a global survey of more than 1,300 respondents across industries, the report charts the rapid rise in AI adoption over the past year and shows how leading firms are fundamentally restructuring their operations to unlock value.

According to the study, 72% of respondents say their companies have now adopted AI in at least one business area, up from 55% in 2023. More striking still is that just a year after generative AI tools such as ChatGPT entered the mainstream, more than half of companies are already using them, with two-thirds expecting to increase investment in the next year. Larger firms are significantly ahead of their smaller counterparts, not only in adopting AI but in scaling it across their organisations. They are also more likely to be seeing a tangible return, with McKinsey estimating that generative AI could add up to £3.3 trillion in annual global productivity gains.

Commitment from the top is critical in making the most out of these new technologies in organisations where the CEO is directly involved in AI governance such as setting policy, defining objectives, or overseeing risk, the chances of delivering measurable business value are nearly twice as high, with half of companies reporting financial benefits from AI having CEOs leading the charge as compared to just 29% of those seeing no such impact.