(Reuters) – Mckinsey has instructed businesses in mainland China to avoid projects deploying generative artificial intelligence, the Financial Times reported Wednesday, saying that two people know the problem.
The US-based consulting company did not immediately respond to requests for comment outside of normal business hours. Reuters could not immediately confirm the report.
The move was spurred by the US government, which is increasing scrutiny of US companies operating in sensitive sectors such as AI and quantum computing in China, the newspaper said.
The ban extends to projects in offices of multinational clients, but McKinsey's Chinese business will not stop working with companies with more established AI types in their products, the report added.
The company employs more than 1,000 individuals in six regions, according to its website.
The report comes at a time of growing tensions between Washington and Beijing. There, China imposes an exit ban on some US citizens visiting the country.
Last year, US lawmakers called for an investigation into McKinsey's failure to disclose his work with the Chinese government.
(Reporting by Gnaneshwar Rajan of Bengaluru, edited by Mrigank Dhaniwala and Nivedita Bhattacharjee)
