Artificial Intelligence

65% of Businesses Integrate Generative AI Into Workflows, Unveils McKinsey

With the rapid adoption of generative AI, survey participants report significant benefits and better accuracy risk management, spearheaded by a few top-performing companies. Learn more about McKinsey’s latest survey findings here.

Pragati Pate

June 3, 2024

Enterprises are significantly increasing their adoption of generative AI (Gen AI), with a nearly twofold rise over the past ten months.
Most organizations employ a hybrid approach, combining off-the-shelf tools with customization across diverse industries, such as technology, media, retail, and financial services.

According to McKinsey’s latest Global Survey on AI report, organizations are adopting generative AI (Gen AI) at a dramatically higher rate, highlighting significant value generation across various industries. This represents almost a twofold increase over the percentage found in the previous McKinsey Global AI Survey conducted ten months ago.

Fifty percent of the survey respondents reported adopting AI in two or more business functions, with 67% expecting increased AI investment in the next three years. The most significant growth in adoption occurs in professional services, with gen AI commonly used in marketing, sales, product and service development, and IT. Enterprises are experiencing substantial cost reductions, particularly in human resources. On average, enterprises take one to four months to deploy gen AI into production.

See more: Evolving C-Suite: How to Lead in the Era of Gen AI

McKinsey outlines three approaches to implementing gen AI: “takers” leveraging off-the-shelf tools, “shapers” customizing publicly available tools, and “makers” developing their models. Surprisingly, most enterprises employ a hybrid approach, with roughly 50% utilizing off-the-shelf tools and the other significantly customizing or building from scratch. This trend extends across diverse industries, including technology, media, telecommunications, consumer goods, retail, healthcare, financial services, and business and legal professional services.

Despite the rapid adoption of generative AI, 44% of surveyed organizations report negative impacts such as inaccuracies, cybersecurity concerns, and data management issues. “High performers” face data-related problems, including insufficient reporting of training data, challenges in defining data governance processes, and difficulties in integrating data promptly. However, only 18% have an AI governance board, and one-third prioritize gen AI risk awareness for employees. These results underscore how important it is to have robust governance structures and enhance employee training to mitigate risks associated with using AI.

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Pragati Pate

Pragati is an enthusiastic content creator who enjoys experimenting with different technologies. She specializes in creating engaging content on topics like data, AI, cloud computing, cybersecurity, and MarTech. Pragati's writing skills, combined with her love for painting, social work, dancing, and cooking, bring a unique perspective to her work. She is passionate about transforming complex technical information into accessible and captivating content that resonates with her audience.