Tuesday, December 14, 2021

g-f(2)729 THE BIG PICTURE OF THE DIGITAL AGE (12/14/2021), McKinsey Global Survey, The state of AI in 2021




ULTRA-condensed knowledge


"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital age, Artificial Intelligence, The state of AI in 2021 (12/14/2021) 


OPPORTUNITY, McKinsey

EXCEPTIONAL “Full Pack Golden Knowledge Container”


Companies seeing the highest bottom-line impact from AI exhibit overall organizational strength and engage in a clear set of core best practices.


  • Michael Chui, partner, McKinsey Global Institute, San Francisco: What we’ve said in the past about “following the money” to find where AI adds value in organizations still holds true. At the industry level, companies continue to use AI in areas that are most fundamental to where value is generated in each sector. And, overall, many companies focused on growth in 2019 (we asked about last year’s revenue and cost effects from AI); for that reason, it’s likely that we saw more companies driving revenues with AI rather than decreasing their costs—not because AI can’t effectively reduce costs.
  • 50% of respondents report that their companies have adopted AI in at least one business function.
    • 57% of respondents in emerging economies report adoption, up from 45 percent in 2020
    • 27% of respondents report at least 5% of EBIT attributable to AI
    • 64% of high performers’ AI workloads run on public or hybrid cloud, compared with 44 percent at other companies.
  • About the research
    • The online survey was in the field from May 18 to June 29, 2021, and garnered responses from 1,843 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 1,013 said their organizations had adopted AI in at least one function and were asked questions about their organizations’ AI use. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.


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        References


        McKinsey Global Survey, The state of AI in 2021, Michael Chui, Bryce Hall, Alex Singla and Alex Sukharevsky, December 13, 2021, McKinsey & Company, McKinsey.


        ABOUT THE AUTHOR(S)



        The survey content and analysis were developed by Michael Chui, a partner of the McKinsey Global Institute and a partner in McKinsey’s Bay Area office; Bryce Hall, an associate partner in the Washington, DC, office; Alex Singla, a senior partner in the Chicago office; and Alex Sukharevsky, a senior partner in the Moscow office.



        Extra-condensed knowledge


        Lessons learned, McKinsey


        • The results of our latest McKinsey Global Survey on AI indicate that AI adoption  continues to grow and that the benefits remain significant— though in the COVID-19 pandemic’s first year, they were felt more strongly on the cost-savings front than the top line. As AI’s use in business becomes more common, the tools and best practices to make the most out of AI have also become more sophisticated.
        • We looked at the practices of the companies seeing the biggest earnings boost from AI and found that they are not only following more of both the core and advanced practices, including machine-learning operations (MLOps), that underpin success but also spending more efficiently on AI and taking more advantage of cloud technologies. Additionally, they are more likely than other organizations to engage in a range of activities to mitigate their AI-related risks—an area that continues to be a shortcoming for many companies’ AI efforts.


        Condensed knowledge



        Lessons learned, McKinsey 

        The differentiators of AI outperformance

        • The companies seeing the biggest bottom-line impact from AI adoption are more likely to follow both core and advanced AI best practices, including MLOps; move their AI work to the cloud; and spend on AI more efficiently and effectively than their peers.
        • Organizations seeing the highest returns from AI are more likely to follow both core and more advanced best practices.
        • There’s evidence that engaging in such practices is helping high performers industrialize and professionalize their AI work, which leads to better results and greater efficiency and predictability in their AI spending. Three-quarters of AI high performers say the cost to produce AI models has been on par with or even less than they expected, whereas half of all other respondents say their companies’ AI project costs were higher than expected. Going forward, the AI high performers’ work could push them farther ahead of the pack, since both groups plan to increase their spending on AI by roughly the same amount.
        • Compared with their peers, the high performers’ AI spending is more efficient and predictable.
        • The survey results also suggest that AI high performers could be gaining some of their efficiency by using the cloud. Most companies—whether they are high performers or not—tend to use a mix of cloud and on-premises platforms for AI similar to what they use for overall IT workloads. But the high performers use cloud infrastructure much more than their peers do: 64 percent of their AI workloads run on public or hybrid cloud, compared with 44 percent at other companies. This group is also accessing a wider range of AI capabilities and techniques on a public cloud. For example, they are twice as likely as the rest to say they tap the cloud for natural-language-speech understanding and facial-recognition capabilities.


        Some relevant characteristics of this "genioux fact"

        • Category 2: The Big Picture of the Digital Age
        • [genioux fact deduced or extracted from McKinsey]
        • This is a “genioux fact fast solution.”
        • Tag Opportunities those travelling at high speed on GKPath
        • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
        • Type of validity of the "genioux fact". 

          • Inherited from sources + Supported by the knowledge of one or more experts + Supported by a research.


        References


        “genioux facts”: The online programme on MASTERING “THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)729, Fernando Machuca, December 14, 2021, blog.geniouxfacts.com, geniouxfacts.com, Genioux.com Corporation.


        ABOUT THE AUTHORS


        PhD with awarded honors in computer science in France

        Fernando is the director of "genioux facts". He is the entrepreneur, researcher and professor who has a disruptive proposal in The Digital Age to improve the world and reduce poverty + ignorance + violence. A critical piece of the solution puzzle is "genioux facts". The Innovation Value of "genioux facts" is exceptional for individuals, companies and any kind of organization.



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