2023 — Breakthrough year of Generative AI

Latest survey by McKinsey, on the state of AI in 2023 provides a comprehensive overview of the state of AI in 2023, specifically focusing on the breakout year of generative AI (gen AI) tools. Here are some key points the report highlights:

1. It’s early days still, but use of gen AI is already widespread:

• Generative AI tools have experienced explosive growth in adoption within a year of their debut.
• Approximately one-third of the surveyed organizations are regularly using gen AI tools in at least one business function.
• Even C-suite executives are personally using gen AI tools for work.
• Gen AI is being used across various industries and regions.
• The most common functions using gen AI are marketing and sales, product and service development, and service operations.
• Organizations are using gen AI tools where they can derive the most value.
• Respondents anticipate significant industry transformation due to gen AI in the next three years.

2. Leading companies are already ahead with gen AI:

• AI high performers, organizations significantly benefiting from AI, are actively adopting both gen AI and traditional AI capabilities.
• High performers are using gen AI in more business functions than other organizations.
• Gen AI efforts at high performers are focused on creating new revenue sources and enhancing existing offerings.
• High performers invest more in AI, use AI capabilities across various functions, and adopt AI technologies more effectively.
• High performers’ main challenge is managing models and tools, whereas others face more foundational AI adoption challenges.

3. AI-related talent needs shift, and AI’s workforce effects are expected to be substantial:

• Organizations are shifting their hiring focus towards roles like data engineers, machine learning engineers, and AI data scientists.
• Prompt engineering roles have emerged due to gen AI adoption.
• Hiring for AI-related roles has become somewhat easier in the past year.
• Reskilling is expected to be more common than workforce reduction due to AI adoption.
• AI high performers are expected to conduct higher levels of reskilling compared to other companies.

4. With all eyes on gen AI, AI adoption and impact remain steady:

• While gen AI adoption is increasing, it’s not necessarily driving a substantial increase in overall AI adoption.
• The proportion of organizations adopting AI overall remains steady.
• AI adoption is still limited in scope for many organizations.
• The areas most adopting AI are product and service development and service operations.

Overall, the report highlights the rapid rise of generative AI tools, its impact on various industries, the practices of leading organizations, and the anticipated changes in workforce dynamics due to AI adoption.

Eulify is an Artificial Intelligence Solutions Company based in the UAE focussed on bringing in AI technology for Enterprises and Governments in MENA region. Get in touch via email charika@eulify.com to know more about the use cases we have implemented for Organizations/ Governments across the globe.