C-level executives don’t have a precise idea of where artificial intelligence is steering their companies. They do know, however, that the ground-breaking technology will have a huge impact on enterprise commerce.
What’s more, that impact will be felt sooner rather than later as more companies invest in AI-based technologies.
Now, a new report from McKinsey clarifies some of those impacts on companies and on the executives tasked with managing AI processes and strategies,
According to the latest McKinsey Global Survey, over 30% of survey respondents say their companies are using AI “in at least one business function”.
— Additionally, 25% of senior executives say they are increasingly more likely to use generative AI for their own workplace tasks. Those tasks include running data sets, setting their own strategic planning guidelines, and even planning their travel schedules.
— Over 25% of respondents from companies using AI say gen AI is already on their boards’ agendas.
— 40% of respondents say their organizations will increase their investment in AI overall because of advances in generative AI.
The second half of 2023 represents what McKinsey calls “the early days” of generative AI. In this timeframe, C-level decision-makers are worried about what they consider to be one of the early risks of leveraging generative AI – inaccuracy.
Yet while errors and inaccuracies weigh heavy on the minds of senior executives, McKinsey reports the earlier companies to start engaging with AI, the sooner significant worries over company risk recede (although it likely won’t completely go away).
“The organizations that have already embedded AI capabilities have been the first to explore gen AI’s potential, and those seeing the most value from more traditional AI capabilities,” the report states. “This is a group we call AI high performers, which are already outpacing others in their adoption of gen AI tools,” McKinsey reports.
CFO’s Should Emphasize Data
As for the chief financial officer role, the study distinctly shines a light on one highly recommended area of use for AI in the corporate finance suite.
“Today, digital technologies are transforming every functional area within an organization,” says Ankur Agrawal, a partner at McKinsey and a key contributor to the report.
“For example, financial and non-financial data reporting and visualization capabilities are becoming standard in finance,” the report notes. “To differentiate their finance organizations, CFOs should take the next step and embed advanced analytics to make use of their organizations’ data—the vast majority of which typically goes unused.”
Insights generated from that usage “can be critical” in helping to de-bias leaders’ decision making and may unlock new value pools by challenging established beliefs,” McKinsey says.
“We expect to see generative AI, in addition to more traditional advanced analytics and machine learning algorithms, play an important role in getting the most value out of companies’ data,” Agrawal notes.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
