Does McKinsey Use AI to Write Its Reports?
Summary of the AI Survey April 2023
McKinsey’s Survey April 2023 on the state of adoption of AI in 2023 is, again, a whopping 21 pages long. As I tried to get through all the details, I couldn’t help but wonder – does McKinsey use AI to write its comprehensive AI reports? Or do they rely solely on human intelligence? Either way, I will need some AI assistance from my favourite heavy lifter, 100k Claude, to summarise the key points so you don’t have to read all 21 pages yourself.
Out of respect for the fabulous work in assembling this report, I will not share the very efficient, high-quality graphs McKinsey posted in their document; I can only invite you to have a look at them; they are absolutely worth the detour.
From all the insights I’ve gathered, there’s one thing I want to emphasise—it’s the remarkable answer I received to my last question. Our AI, Claude, made a fascinating conclusion:
“C-suite adoption of AI and generative AI is strongly correlated with higher-performing companies.”
Isn’t it fascinating how adopting AI can truly elevate businesses and leaders to new heights? That’s why I firmly believe that
“🤯🤯🤯 AI will not replace you, someone using AI will” – but here’s the empowering twist – “unless you take the lead and embrace AI first! 😎😎😎“ Click To Tweet
“AI will not replace you, someone using AI will” – but here’s the empowering twist – “unless you take the lead and embrace AI first!“
McKinsey AI Survey April 2023
Now, let’s delve into the key takeaways from the latest McKinsey Survey conducted between April 11th and 21st, 2023. These insights hold valuable lessons for our leadership journey with AI:
Generative AI Adoption Widespread But Still Early Days
- 1/3 of survey respondents say their companies use gen AI regularly in at least one function.
- Gen AI use cases focus on marketing, product development, and customer service.
- 40% of companies using AI will increase investment because of gen AI advances.
- But only 21% have gen AI policies, suggesting early adoption days.
AI “High Performers” Leading the Way
- Companies attributing over 20% of EBIT to AI are early gen AI adopters.
- High performers use gen AI more than others in product development, risk management, and supply chain.
- High performers focus less on cost reduction and more on new revenue sources.
- High performers invest 5X more in AI than others.
Managing Risks and Unintended Consequences
- Inaccuracy tops the list of gen AI risks, but only 32% mitigate it.
- Other risks like cybersecurity and IP infringement also lack sufficient mitigation.
- High performers have more advanced model monitoring and alert systems.
- But few companies seem fully prepared for gen AI risks.
AI Reshaping Workforces and Talent Needs
- Data and ML engineering remain top AI hiring needs.
- But difficulty hiring these roles has decreased vs 2022.
- 38% expect to reskill over 20% of the workforce due to AI adoption.
- High performers expect to reskill far more employees than others.
Overall, AI Adoption Remains Steady
- 55% of companies have adopted AI, steady since 2021.
- AI remains concentrated on a few business functions like product development.
- Just 23% attribute over 5% of EBIT to AI, showing room for more value.
- But most expect to increase AI investment over the next three years.
I asked a few specific questions to Claude, but it’s the answer to the last one that attracted all my attention.
1° What was the period during which the Survey was made?
2° Are there differences between Europe, US and China?
3° How are C-levels interacting with AI in general and Generative AI in particular, Are they just passively interested, or are they active early adopters? And WHat does that say about the success of their companies?
Based on the information in the McKinsey report:
1) The Survey was in the field from April 11-21, 2023.
2) The report breaks out some survey data by region. Key regional differences include:
- Respondents in North America report the highest level of personal generative AI use at work (22%), compared to 10-14% in other regions.
3) For C-suite executives:
- Nearly 1/4 report personally using generative AI tools for work.
- Over 25% say generative AI is already on their board agenda.
This suggests that C-level executives are not just passively interested but are active early adopters of generative AI.
The report notes that companies achieving significant value from AI overall (the “AI high performers”) are also early adopters of generative AI across more business functions. We are talking about correlation, not causality, but nevertheless:
This implies that C-suite adoption of AI/generative AI is correlated with higher-performing companies.
Thanks to McKinsey’s tremendous effort to offer the best and most complete info in such a splendid, slightly heavy-but-luckily-we-have-Claude way.
Your is AI