g-f(2)2083 Harnessing Generative AI: Balancing Speed and Safety

 

genioux Fact post by Fernando Machuca and Bing Chatbot (Copilot)

Introduction

The McKinsey Quarterly article "Implementing generative AI with speed and safety" provides a comprehensive overview of the potential and challenges of implementing generative AI (gen AI). It discusses how gen AI can have a transformative impact across innovation, growth, and productivity, highlighting the significant risks associated with its implementation.

genioux GK Nugget

"Generative AI presents a once-in-a-generation opportunity for transformative impact across innovation, growth, and productivity, but its implementation must be managed with speed and safety." — Fernando Machuca and Bing Chatbot (Copilot)

genioux Foundational Fact

Generative AI (gen AI) has the potential to add up to $4.4 trillion in economic value to the global economy while enhancing the impact of all AI by 15 to 40 percent. However, implementing gen AI comes with significant risks, including inaccurate outputs, biases embedded in the underlying training data, and the potential for large-scale misinformation. It's crucial to adapt proven risk management approaches to gen AI to move responsibly and with good pace to capture the value of the technology.

10 genioux Facts

1. Generative AI presents a once-in-a-generation opportunity for companies.
2. Gen AI has the potential for transformative impact across innovation, growth, and productivity.
3. Gen AI can produce credible software code, text, speech, high-fidelity images, and interactive videos.
4. McKinsey research estimates that gen AI has the potential to add up to $4.4 trillion in economic value to the global economy.
5. Gen AI can enhance the impact of all AI by 15 to 40 percent.
6. The implementation of gen AI comes with significant risks.
7. These risks include inaccurate outputs, biases embedded in the underlying training data, and the potential for large-scale misinformation.
8. It's crucial to adapt proven risk management approaches to gen AI.
9. By adapting these approaches, it's possible to move responsibly and at a good pace to capture the value of gen AI.
10. The article suggests that understanding these changes and the lessons learned from navigating this mass disruption event is crucial for future preparedness.

Conclusion

The implementation of generative AI presents both significant opportunities and challenges. While it has the potential to drive transformative impact across various sectors, it also comes with substantial risks. Therefore, it's crucial to adapt proven risk management approaches to navigate these challenges effectively and harness the full potential of this technology.

REFERENCE

The g-f GK Article

Oliver Bevan, Michael Chui, Ida Kristensen, Brittany Presten, and Lareina Yee, Implementing generative AI with speed and safety, McKinsey Quarterly, March 13, 2024.

About the authors

This article is a collaborative effort by Oliver Bevan, Michael Chui, Ida Kristensen, Brittany Presten, and Lareina Yee, representing views from McKinsey’s Risk & Resilience Practice and QuantumBlack, AI by McKinsey.

Copilot's Summary

The McKinsey Quarterly article "Implementing generative AI with speed and safety" discusses the potential and challenges of implementing generative AI (gen AI). Gen AI presents a once-in-a-generation opportunity for companies, with the potential for transformative impact across innovation, growth, and productivity¹. The technology can now produce credible software code, text, speech, high-fidelity images, and interactive videos¹. McKinsey research has estimated that gen AI has the potential to add up to $4.4 trillion in economic value to the global economy while enhancing the impact of all AI by 15 to 40 percent¹. However, the implementation of gen AI also comes with significant risks, including inaccurate outputs, biases embedded in the underlying training data, and the potential for large-scale misinformation¹. The article suggests that by adapting proven risk management approaches to gen AI, it's possible to move responsibly and with good pace to capture the value of the technology¹.

Source: Conversation with Bing, 3/14/2024

(1) Implementing generative AI with speed and safety | McKinsey. https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/implementing-generative-ai-with-speed-and-safety.

(2) A generative AI reset: Rewiring to turn potential into value in 2024. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/a-generative-ai-reset-rewiring-to-turn-potential-into-value-in-2024.

(3) How generative AI can revolutionize the software development lifecycle. https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2023/KPMG-GenAI-and-SDLC.pdf.

(4) What every CEO should know about generative AI - McKinsey & Company. https://www.mckinsey.com/~/media/mckinsey/business%20functions/mckinsey%20digital/our%20insights/what%20every%20ceo%20should%20know%20about%20generative%20ai/what-every-ceo-should-know-about-generative-ai.pdf.

Oliver Bevan

Oliver Bevan is a Partner at McKinsey & Company, based in the Chicago office¹. He co-leads McKinsey’s North American Enterprise Risk Management efforts, with a focus on corporate risk³. Bevan advises and serves clients in financial services, fintech, healthcare, and high-growth technology on putting risk management at the heart of business strategy¹. His areas of expertise include designing and developing integrated risk identification and management frameworks, supporting organizations to ensure controls and reporting for data are aligned to regulatory requirements¹. He has also supported clients to identify and mitigate risks emerging from the COVID-19 pandemic¹.

Source: Conversation with Bing, 3/15/2024

(1) Oliver B. - Partner - McKinsey & Company | LinkedIn. https://www.linkedin.com/in/oliver-b-86102844.

(2) Oliver Bevan - AFERM - Association for Federal Enterprise Risk Management. https://www.aferm.org/speakers/oliver-bevan/.

(3) Oliver-Bevan | Banking & Securities matters | McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/author/oliver-bevan.

Michael Chui 

Michael Chui is a Partner at the McKinsey Global Institute (MGI), McKinsey's business and economics research arm, based in San Francisco¹. He leads research on the impact of disruptive technologies and innovation on business, the economy, and society¹. His areas of expertise include data & analytics, social & collaboration technologies, the Internet of Things, and artificial intelligence, robotics & automation, and biological technologies¹. He is a frequent speaker at major global conferences, and his research has been cited in leading publications around the world¹. Prior to joining McKinsey, Michael served as the first chief information officer of the city of Bloomington, Indiana¹.

Source: Conversation with Bing, 3/15/2024

(1) Michael Chui | McKinsey & Company. https://www.mckinsey.com/our-people/michael-chui.

(2) . https://bing.com/search?q=Michael+Chui+McKinsey+summary.

(3) Executive summary The Bio Revolution - McKinsey & Company. https://www.mckinsey.com/~/media/mckinsey/industries/life%20sciences/our%20insights/the%20bio%20revolution%20innovations%20transforming%20economies%20societies%20and%20our%20lives/mgi_the%20bio%20revolution_executive%20summary_may%202020.pdf.

(4) Michael Chui - Partner, McKinsey Global Institute - Crunchbase. https://www.crunchbase.com/person/michael-chui.

(5) Michael Chui - Business Insider. https://www.businessinsider.com/author/michael-chui.

(6) undefined. https://www.mckinsey.com/featured-insights/digital-disruption/harnessing-automation-for-a-future-that-works.

Ida Kristensen 

Ida Kristensen is a Senior Partner at McKinsey & Company, based in New York¹. She co-leads the Risk & Resilience Practice and advises leading financial institutions on cybersecurity, strategies for risk management, regulatory compliance, and operational improvement¹. With more than fifteen years of consulting experience in advising clients on risk, she has helped clients design and implement an enterprise risk-management function, led work supporting a multiyear comprehensive capital-analysis and review program at a top US bank, and worked with clients to redesign operational risk and compliance functions to meet heightened regulatory expectations¹.

Source: Conversation with Bing, 3/15/2024

(1) Ida Kristensen | McKinsey & Company. https://www.mckinsey.com/our-people/ida-kristensen.

(2) Ida Pagter Kristensen - McKinsey & Company | LinkedIn. https://www.linkedin.com/in/idapagterkristensen.

(3) Ida-Kristensen | Banking & Securities matters | McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/author/ida-kristensen.

Brittany Presten

Brittany Presten is an Associate Partner at McKinsey & Company¹². She has a strong academic background, having been a Rhodes Scholarship finalist and graduating with distinction from Stanford University². At Stanford, she was elected as one of the top engineering students across all fields².

In addition to her professional achievements, Brittany has an impressive record in athletics. She was a Varsity Athlete on the Lightweight Rowing Team at Stanford University, serving as Team Captain in 2015-2016, and was a three-time National Champion (2013, 2015, 2016). She was also a two-time All-American Athlete (2014, 2016) and received the Cardinal Award for demonstrating leadership, teamwork, and dedication².

Furthermore, Brittany was a member of the USA National Team for U23 Lightweight Rowing in 2014, where she competed in the U23 World Rowing Championships².

She has also contributed to the AI Index 2021 report², indicating her involvement in the field of artificial intelligence. Her work has been featured in the Harvard Business Review, where she has written about the impact of human biases on artificial intelligence systems³.

Source: Conversation with Bing, 3/15/2024

(1) Brittany Presten - Associate Partner - McKinsey & Company - LinkedIn. https://www.linkedin.com/in/brittany-presten-094415285.

(2) Brittany Presten | LinkedIn. https://www.linkedin.com/in/brittany-presten-03441b78.

(3) What Do We Do About the Biases in AI? - Harvard Business Review. https://hbr.org/2019/10/what-do-we-do-about-the-biases-in-ai.

(4) undefined. https://lnkd.in/dFFv4XA.

Lareina Yee

Lareina Yee is a Senior Partner at McKinsey & Company¹². She serves as the Chair of McKinsey's Technology Council and leads the firm's client work with technology disruptors²⁵. With over 20 years of experience, she advises companies on strategy, growth, and organizational health³⁵.

Lareina is an expert in growth and culture change and has a keen interest in advancing technology and diversity outcomes². She has co-authored a significant body of research on diversity, including "Race in the workplace: The frontline experience", and "Delivering through diversity"². She also co-founded Women in the Workplace, an annual research partnership with LeanIn.org that reports annually on the state of women in corporate America².

Previously, Lareina served as McKinsey’s first Chief Diversity and Inclusion Officer²⁴. She is a long-time champion of fostering women leaders⁴. Her most recent published work includes the annual “McKinsey Technology Trends Outlook”, “The economic potential of generative AI”, “What every CEO should know about generative AI,” and “Generative AI and the future of HR”².

In addition to her work with McKinsey, Lareina serves on the board of the San Francisco Ballet and on the advisory councils of the Clayman Institute for Gender Research at Stanford University and the Beyond Barnard program at Columbia University².

Source: Conversation with Bing, 3/15/2024

(1) Lareina Yee - McKinsey & Company | LinkedIn. https://www.linkedin.com/in/lareinayee.

(2) Lareina Yee | McKinsey & Company. https://www.mckinsey.com/our-people/lareina-yee.

(3) Lareina Yee | WSJ Tech Live. https://techlive.wsj.com/person/lareina-yee/.

(4) Lareina Yee | The Clayman Institute for Gender Research. https://gender.stanford.edu/people/lareina-yee.

(5) Lareina Yee | WSJ Women In. https://womenin.wsj.com/person/lareina-yee/.

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Categorization

This genioux Fact post is classified as Bombshell Knowledge which means: The game-changer that reshapes your perspective, leaving you exclaiming, "Wow, I had no idea!"

Type: Bombshell Knowledge, Free Speech

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References

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2083, Fernando Machuca and Bing Chatbot (Copilot), March 15, 2024, Genioux.com Corporation.

 

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