g-f(2)2421 Harnessing the Power of Gen AI: The Role of Strategic Alliances

 

genioux Fact post by Fernando Machuca and Copilot

Introduction

The article "Strategic alliances for gen AI: How to build them and make them work" from McKinsey Quarterly provides a comprehensive guide on the importance of strategic alliances in the rapidly evolving field of Generative AI (gen AI) and how to effectively establish and manage them.

genioux GK Nugget

"Strategic alliances with gen AI providers are crucial for companies to fully harness the potential of gen AI, requiring deep collaboration, scalability, interoperability, reusability, and maintaining control over their destiny." — Fernando Machuca and Copilot, May 24, 2024

genioux Foundational Fact

Generative AI has the potential to revolutionize business with an economic impact of up to $4.4 trillion annually. However, to capture this value, companies need to develop strategic alliances with gen AI providers, focusing on deep collaboration, scalability, interoperability, reusability, and maintaining control over their destiny.

The 10 most relevant genioux Facts

1. Gen AI could have an economic impact of up to $4.4 trillion annually.
2. Capturing the value from gen AI requires more than just the technology itself.
3. Companies need to rewire how they work to achieve the full value of their gen AI efforts.
4. Strategic alliances with gen AI providers are a key component of this rewiring.
5. The unique challenges of gen AI make collaborations increasingly vital.
6. Companies should go deeper on collaboration with gen AI providers.
7. Companies should focus on providers who provide scalability, interoperability, and reusability.
8. It's important for companies to stay in control of their destiny when working with gen AI providers.
9. The “build versus buy” approach falls short when it comes to harnessing gen AI’s full potential.
10. Collaborating with providers can offer significant benefits in terms of access to the latest capabilities and expertise, development speed, and tailored solutions.

Conclusion

In conclusion, the article emphasizes the importance of strategic alliances in the field of gen AI. It provides a roadmap for companies to navigate the challenges and opportunities presented by gen AI, highlighting the need for deep collaboration, scalability, interoperability, reusability, and maintaining control over their destiny. The future of gen AI is not just about the technology, but also about the strategic alliances that companies build to harness its full potential.

REFERENCES

The g-f GK Context

Strategic alliances for gen AI: How to build them and make them work, McKinsey Quarterly, May 22, 2024.

ABOUT THE AUTHORS

This article is a collaborative effort by Alex Singla, Alexander Sukharevsky, Ben Ellencweig, and Guilherme Cruz, with Carlo Palermo and Joshan Cherian Abraham, representing views from QuantumBlack, AI by McKinsey and McKinsey Digital.

Classical Summary:

The article "Strategic alliances for gen AI: How to build them and make them work" from McKinsey discusses the importance of strategic alliances in the field of Generative AI (gen AI) and how to make them effective¹.

The article highlights that gen AI has the potential to revolutionize business and could have an economic impact of up to $4.4 trillion annually¹. However, capturing the value from this technology is not just about the tech alone¹. Companies looking to move beyond running gen AI experiments will need to rewire how they work to achieve the full value of their efforts¹.

One key component of this rewiring is developing strategic alliances with gen AI providers¹. The unique challenges of working with gen AI, such as the lack of experience that many have in using the technology, gen AI’s instability and risk, and the technology’s rapid pace of change, have made collaborations increasingly vital¹.

To make the most of strategic alliances, companies should focus on three areas¹:

1. Go deeper on collaboration: Working with providers on gen AI programs requires a greater degree of trust and collaboration than has been necessary with traditional vendors¹.
2. Zero in on providers who provide scalability, interoperability, and reusability: Achieving scale with a range of providers means understanding not only how well providers can scale but also how well their solutions will work with other components in a company’s gen AI ecosystem¹.
3. Stay in control of your destiny: It is important to strike a balance between building on a provider’s capabilities and becoming overly dependent on them¹.

The article concludes by emphasizing that the “build versus buy” approach to creating gen AI capabilities falls short when it comes to harnessing gen AI’s full potential¹. Collaborating with providers can offer significant benefits in terms of access to the latest capabilities and expertise, development speed, and tailored solutions¹.

Source: Conversation with Copilot, 5/24/2024

(1) Strategic alliances for gen AI: How to build them and make them work. https://www.mckinsey.com/capabilities/quantumblack/our-insights/strategic-alliances-for-gen-ai-how-to-build-them-and-make-them-work.

(2) McKinsey’s ecosystem of strategic alliances brings the power of .... https://www.mckinsey.com/about-us/new-at-mckinsey-blog/mckinsey-alliances-bring-the-power-of-generative-ai-to-clients.

(3) Strategic alliances for gen AI: How to build them and make them work. https://bing.com/search?q=%22Strategic+alliances+for+gen+AI%3a+How+to+build+them+and+make+them+work.%22+McKinsey+article+summary.

Alex Singla

Alex Singla is a Senior Partner at McKinsey & Company and the global leader of QuantumBlack, AI by McKinsey¹². With over 20 years of experience, he advises institutions on strategy, digital, data & analytics, operations, and enterprise transformation to achieve step-change and sustainable improvement in value creation¹².

He helps companies transform by ensuring digital and data & analytics solutions go from pilot to full-scale adoption and scaling¹². He embeds change management and capability building as core elements to every transformation to ensure sustainable and step-change improvements in growth, effectiveness, cost, profitability, and customer experience¹².

In his more than 20 years with McKinsey, Alex has advised clients on a range of topics: including strategy, digital and analytics, enterprise transformation, service operations, distribution, e2e customer journeys, technology, risk assessment, warranty and claims, marketing, and cost¹².

Outside of work, Alex is a member of the board of trustees of the Shedd Aquarium in Chicago, and a member of the Council of Governors of the American India Foundation¹². He is also a Mentor for innovative technology startups who are accepted into the Creative Destruction Lab program at the University of Wisconsin-Madison¹².

Source: Conversation with Bing, 3/5/2024

(1) Alex Singla | McKinsey & Company. https://www.mckinsey.com/our-people/alex-singla.

(2) Alex Singla - Chicago, Illinois, McKinsey & Company | about.me. https://about.me/AlexSingla.

(3) Alex Singla | McKinsey & Company. https://bing.com/search?q=Alex+Singla+McKinsey+bio.

(4) Alex Singla | Speakers. https://mitcio.com/posts/alex-singla.

Alexander Sukharevsky

Alexander Sukharevsky is a Senior Partner at McKinsey & Company and the global leader of QuantumBlack, AI by McKinsey¹⁴. Since 2020, he has overseen QuantumBlack’s expansion and emergence within the firm as a recognized leader in applied artificial intelligence¹⁴. He leads digital operations around the world and focuses on scaling the use of artificial intelligence through the development of proprietary assets and partnerships with an ecosystem of leading technology companies¹.

Before taking on his role with QuantumBlack, Alexander was the leader of McKinsey Digital in Europe, the Middle East, and Africa¹. His work spans industries and countries, redefining business models while improving performance through the responsible use of artificial intelligence and technology¹.

Alexander is a recognized thought leader on topics of artificial intelligence and digital transformation, publishing articles in leading business publications and speaking frequently at global conferences¹. He is a co-author of the book "Digital @ Scale: The Playbook You Need to Transform Your Company"¹. He serves on McKinsey's Technology Council, which gathers top global technology leaders and McKinsey experts to assess and to track trends in business

Source: Conversation with Bing, 3/5/2024

(1) Alexander Sukharevsky | McKinsey & Company. https://www.mckinsey.com/our-people/alexander-sukharevsky.

(2) Alexander Sukharevsky - Pi Capital. https://picapital.co.uk/event/alexander-sukharevsky/.

Ben Ellencweig

Ben Ellencweig is a Senior Partner at McKinsey & Company and leads the QuantumBlack, AI by McKinsey Practice in its alliances, acquisitions, and partnerships globally¹. He advises clients on harnessing the power of AI to deliver growth and bottom-line impact across sectors¹.

Before joining McKinsey, Ben served for over a decade in various leadership roles within the government sector, deploying cutting-edge technology solutions⁴. He also served as a liaison officer in the Israel Defense Forces (IDF) military attaché office in Washington, DC¹.

At McKinsey, Ben led the firm’s acquisition of Iguazio, a machine learning operations (MLOps) platform, and spearheaded McKinsey’s growing ecosystem of AI and generative AI partners¹³. He serves on the McKinsey Technology Council, which gathers top global technology leaders to assess and track trends in business and technology¹.

Ben is a recognized thought leader on AI and digital transformation and publishes articles and frequently speaks at global conferences¹. He has published work on a variety of topics, including car connectivity, Gen AI for CFOs, and the promise of travel in the age of AI¹.

Ben holds an MBA from Harvard Business School and a BS in Computer Science and Economics from Tel Aviv University¹. He resides in New York and is a general trustee on the board of the Central Park Conservancy¹. Outside of work, Ben enjoys spending time with his wife and two children¹.

Source: Conversation with Copilot, 5/24/2024

(1) Ben Ellencweig | McKinsey & Company. https://www.mckinsey.com/our-people/ben-ellencweig.

(2) Ben Ellencweig - AI for Good. https://aiforgood.itu.int/speaker/ben-ellencweig-2/.

(3) Ben Ellencweig | McKinsey & Company. https://bing.com/search?q=Ben+Ellencweig+McKinsey+biography.

(4) Ben-Ellencweig | Banking & Securities matters | McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/author/ben-ellencweig.

Guilherme Cruz

Guilherme Cruzis a Partner at McKinsey & Company, based in New York¹. He is a leader in the Technology, Media & Telecommunications Practice at McKinsey, where he focuses on helping companies achieve profitable growth through digital and analytics levers¹.

Guilherme advises leading technology and telecom companies with a focus on AI, data, and go-to-market strategies¹. He has extensive experience in supporting growth and operational improvements across industries and geographies¹. His recent work includes helping a leading software company define its generative AI (gen AI) strategy and roadmap, optimizing the go-to-market design of a major software corporation, guiding a leading telecom company to become “AI-native” by building a digital twin of its operations, and supporting a major telecom enterprise in determining its long-term strategy in the B2B space¹.

In addition to his client work, Guilherme co-leads McKinsey’s digital twin and simulations initiatives, the gen AI partnerships ecosystem, and the apprenticeship efforts in the New York office¹. He has also published work on a variety of topics, including gen AI, digital twins, and the future of B2B sales¹².

Guilherme holds an MBA from Harvard Business School, an MSc from University College London, and a BSc from Universidade Nova de Lisboa¹. Prior to his current role, he lived and worked in Europe and Latin America¹.

Source: Conversation with Copilot, 5/24/2024

(1) Guilherme Cruz | McKinsey & Company. https://www.mckinsey.com/our-people/guilherme-cruz.

(2) Digital twins and generative AI: A powerful pairing - McKinsey & Company. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/tech-forward/digital-twins-and-generative-ai-a-powerful-pairing.

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Categorization

This genioux Fact post is classified as Breaking Knowledge which means: Insights for comprehending the forces molding our world and making sense of news and trends.

Type: Breaking 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)2421, Fernando Machuca and Copilot, May 24, 2024, Genioux.com Corporation.

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