McKinsey Survey Shows AI Adoption Impacts Bottom Line
The results of our latest McKinsey Global AI Survey indicate that the adoption of AI continues to grow and the benefits remain significant, even though in the first year of the COVID-19 pandemic they were felt more strongly on the savings front than on turnover. As the use of AI in businesses becomes more mainstream, the tools and best practices for getting the most out of AI have also become more sophisticated.
We looked at the practices of companies that saw the greatest increase in AI revenue and found that they were not only following basic and advanced practices more, including Machine Learning Operations (MLOps), which under -stretch success, but also spend more efficiently on AI and take more advantage of cloud technologies. Additionally, they are more likely than other organizations to engage in a range of activities to mitigate their AI risks, an area that continues to be a gap for many companies’ AI efforts. .
AI adoption and impact increasing globally, led by China and India
The majority of respondents now say their organizations have embraced AI capabilities as the impact of AI on bottom lines and cost savings grows.
The 2021 survey results indicate that AI adoption continues to climb steadily: 56% of all respondents say they have adopted AI in at least one function, up from 50% in 2020. Latest results suggest that the adoption of AI has increased since last year. most in companies based in emerging economies, which include China, the Middle East and North Africa: 57 percent of respondents say they’ve adopted, up from 45 percent in 2020. And across all regions, the adoption rate is highest among Indian companies, followed closely by those in Asia-Pacific.
As we saw in the last two surveys, the business functions where AI adoption is most common are service operations, product and service development, as well as marketing and sales, although that the most popular use cases cover a range of functions. The top three use cases are service operations optimization, AI-powered product improvement, and contact center automation, the largest percentage point increase in usage of the AI lying in marketing budget allocation and business spending efficiency.
The results also suggest that the impact of AI on financial results is increasing. The share of respondents saying at least 5% of profit before interest and taxes (EBIT) is attributable to AI has increased year over year to 27%, from 22% in the survey former.
And while AI’s revenue benefits have remained stable or even declined since the previous survey – especially for supply chain management, where AI was unlikely to compensate for the challenges of pandemic era global supply chain – the reverse is true for costs. Respondents report significantly greater cost savings from AI than ever before across all functions, with the largest year-over-year changes in actions reporting costs related to the business. use of AI in product and service development, marketing and sales, as well as corporate strategy and finance.