Sam Altman’s OpenAI helped spark interest in new AI technologies after releasing ChatGPT last year. Akio Kon — via Bloomberg, Getty Images
Generative AI has caught the attention of nearly every company, but many are still unsure what to do with it. Officials at the McKinsey Global Institute released a new report today looking at potential use cases. And they see a lot of things. “Generative AI could add the equivalent of $4.4 trillion from $2.6 trillion annually across the 63 use cases we analyzed.” They point out that it is comparable to
Interestingly, 75% of the value they found came from four use cases, which are already starting to take hold.
—Customer operations. Generative AI is most clearly applied here by automating natural language interactions with customers. Machines already handle half of the customer contacts of North American banks, telecommunications and utility companies. Generative AI could further reduce human intervention by “up to 50%.”
—marketing and sales. Generative AI can quickly create personalized messages tailored to individual customer interests, We also create first drafts of brand ads, slogans, social media posts and product descriptions.
—software engineering. Generative AI can replace 20% to 45% of current spending on this feature by generating first code drafts, fixing and refactoring code, and accelerating other coding processes.
—Product research and development. The life sciences and chemical industries have started using generative AI-based models for so-called “generative design” to generate candidate molecules and accelerate the development of new drugs and materials.
Which industries will be most affected? Studies show that very little remains untouched. But some of the big productivity gains have come from professional services, advanced manufacturing, banking, high-tech industries, and retail. And unlike previous technology waves, generative AI will have the greatest impact on higher-educated occupations.
The conclusion is: “The scale and extent of the workforce transition described in this report is substantial…about a quarter to a third of work activity could change over the next decade. The challenge before us is to simultaneously manage the potential positive and negative aspects of technology.”
You can read the full report here.Also check of fortune A new list of 13 people leading the AI revolution. More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
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This issue of CEO Daily was curated by Nicholas Gordon.
