Generative artificial intelligence (AI) presents significant opportunities for value creation but also poses challenges for management. According to McKinsey & Co., generative AI could contribute up to $4 trillion to global corporate profits in the coming decades. However, as AI […]
Generative artificial intelligence (AI) presents significant opportunities for value creation but also poses challenges for management. According to McKinsey & Co., generative AI could contribute up to $4 trillion to global corporate profits in the coming decades. However, as AI technology advances, there is increasing confusion about where and why to invest in this field. CEOs and CFOs are torn between the fear of missing out on new technological trends and the concern that their investment might be misguided.
When developing strategies for generative AI, it is essential to first consider the fundamental business questions that need to be addressed. Alex Singla, a senior partner at McKinsey, emphasizes the importance of understanding how AI can play a role in solving these problems. It is then crucial to think about the impact on the industry value chain, initial use cases of AI, and the necessary models.
Paul Daugherty, Chief Technology & Innovation Officer at Accenture, highlights the importance of starting with a business case that defines the overall strategy. This entails considering process changes, potential benefits, and the types of models that will be required.
Sesh Iyer, Managing Director and Partner at BCG, explains that he has participated in over 100 discussions with CEOs and their executive teams about generative AI. Through these conversations, he explains the differences between generative AI and predictive AI, emphasizing the importance of understanding the underlying technology.
Overall, these technological shifts bring significant opportunities for generative AI. However, effective management of these resources and a clear understanding of business objectives are crucial for success. CEOs and CFOs need to carefully plan their AI strategies to gain competitive advantages and unlock the potential of this technology.