A global survey by consulting firm, McKinsey, has revealed that there has been a surge in the adoption of AI by businesses to 72% in 2024 from 55% in 2023.
The report indicated that while 2023 could be described as the year of AI discovery for many businesses globally, 2024 has been the year of adoption.
It, however, noted that many adopters of the technology are also wary of its inherent risks.
McKinsey reports that more than two-thirds of its survey respondents in nearly every region said their organizations are using AI.
Looking by industry, the biggest increase in adoption was found in professional services.
In addition, it said responses suggested that companies are now using AI in more parts of the business.
“Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023,” McKinsey reported.
The risks The report noted that as businesses begin to see the benefits of gen AI, they are also recognizing the diverse risks associated with the technology.
McKinsey said the risks of using AI range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability.
According to the report, a third big risk category is security and incorrect use.
“Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk,” the report read in part. It added that some organizations have already experienced negative consequences from the use of gen AI, with 44% of respondents saying their organizations have experienced at least one consequence.
What businesses are deploying AI for
According to the report, 65% of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year.
It added that an average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development as well as in IT.
The report indicated that the biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled.
Compared with 2023, the report said respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives.
McKinsey said the online survey was conducted from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialities, and tenures.
