- McKinsey Global recently released an annual report on Generative AI.
- The report deems 2023 as the year of generative AI (gen AI).
McKinsey Global’s annual survey report on generative Artificial Intelligence (gen AI) is out, showcasing the explosive growth of gen AI. In less than a year since its debut, many organizations globally use these tools regularly in at least one vertical of their business. Experts argue that this is the event horizon for generative AI.
2023 is the Year of Generative AI: McKinsey Global
Over 40% of the survey respondents say that their organizations plan to increase investments in technology. Some argue about the risks associated with the technology and how are still exploring the immense possibilities of genes. Moreover, the organizations adopting genAI were the ones who were eager to adopt traditional AI during its inception.
Team McKinsey surveyed the companies and experts during mid-April 2023. Results show that despite the technology’s infancy, companies continue experimenting with the tools. They expect the results could potentially transform their industries.
McKinsey Global Report on Generative AI
About 79% of respondents agreed to have some exposure to the technology either at work or outside, while 22% agreed to use it regularly at work. Over 60% of organizations have decided to adopt AI, while 28% say that investment and technology adoption are already on their board’s agenda. Most businesses that use it have a niche in marketing, sales, product, service development, etc.
McKinsey experts think that in their early days, gen AI would cause disruptive changes in the functioning of the industry and the overall market in the upcoming three years. Respondents working in the financial and technology industry expect significant changes in their fields due to gen AI.
Potential Risks Yet to be Addressed
Only 21% of responding companies agreed to be prepared for the risks by establishing policies governing the employee’s use of AI technology at work while others are trying to mitigate the inaccuracy, one of the most common drawbacks of the technology. Respondents also argued that this risk is more frequent than cybersecurity and regulatory compliance.
McKinsey Global Report on Generative AI
32% are trying to deal with inaccuracy, while 38% are trying to solve cybersecurity risks. Almost every primary jurisdiction is trying to address these underlying risks; European Union will soon bring the EU AI Act trying to regulate the technology. OpenAI, Mircosoft, Google, and others recently joined hands to establish AI self-regulation.
Frontier Model, the self-regulation module, was signed by these companies on July 26, 2023. With the current rate of AI’s evolution, these companies deem future products to be more powerful with more disruptive power. As the United States is delaying the procedure to regulate AI, these companies decided to take the matter into their own hands.
As a relatively new technology, the jurisdictions are still exploring the possibilities to determine the need for a regulatory framework while experts have warned about the ill effect and possible challenges it can pose. How these nations would address the AI regulation is yet to be determined but there is certainly a buzz around the technology.
It is yet to be known if the fear will come true and AI will take over the world like in the movie “Terminator” or displace humans from most jobs. But the technology currently has many benefits which outweigh the potential risks. If the methodology is developed to address the potential risks, the benefits of AI technology could undoubtedly revolutionize the world.