Published on November 25th, 2019 | by Emergent Enterprise0
McKinsey Survey: AI Boosts Revenue, but Companies Struggle to Scale Use
Companies are beginning to speak up on how AI is impacting their businesses. At VentureBeat, Khari Johnson shares a McKinsey report on the results after the adoption of AI – both the good results and the areas that need improvement. The big wins are that companies are seeing an increase in revenue and minimal job loss. On the other hand, like many technologies, AI can be difficult to scale. This is a reminder that in the earliest days of AI strategy, there needs to be discussions on how the new process will scale out across the enterprise.
Photo: Marvin Meyer at unsplash
The latest McKinsey Global Survey released today found that artificial intelligence is having a positive impact on business outcomes, with 63% of respondents reporting an increase in revenue after adoption of the technology. However, only 30% of companies apply AI to multiple business units, up from 21% last year.
Still, overall AI adoption is on the rise — in standard business practices it’s up near 25%, according to the online survey of 2,360 business leaders from a range of industries and global regions.
The report also found a number of striking differences between companies deploying several AI systems to business operations and those that are not.
Companies that are considered high performers or AI power users by the study on average apply the technology to 11 use cases compared to three use cases at other companies using machine intelligence. The high performers were also more likely to report revenue increases from AI applications of over 10%.
“Overall, 44% of respondents report cost savings from AI adoption in the business units where it’s deployed, with respondents from high performers more than 4 times likelier than others to say AI adoption has decreased business units’ costs by at least 10%, on average,” the report reads.
Revenue growth was most likely to come from AI applications in marketing, sales, supply chain management, and product development.
That result echoes a Microsoft-commissioned business executive study released earlier this year about the AI opportunity gap. It’s also in line with an Accenture study that found roughly 16% or more of companies have figured out how to deploy AI at scale and more than 70% of companies risk being put out of business by competitors applying AI at scale.