China and Asia Lead in AI Adoption, Shifting Focus to Business Value and Innovation Potential
Summary:
Global AI adoption hits 72%, with generative AI usage doubling, led by China and Asia.
(AIM)—The global adoption of artificial intelligence (AI) has surged to new heights, with 72% of organizations now using AI technologies, according to the latest report from McKinsey. This marks a significant increase from last year’s 50%, showcasing the rapid integration of AI across various sectors and regions. Notably, the usage of generative AI has doubled, with 65% of organizations regularly employing these technologies, compared to 2023.
The McKinsey report underscores that AI adoption is not confined to specific regions or industries. Last year, no region reported AI adoption rates above 66%. This year, however, over two-thirds of respondents across all regions have indicated the use of AI in their organizations. Asia, particularly China, stands out as a leader in this trend, driving significant growth in AI integration.
The study, conducted in early 2024 through an online survey, gathered responses from 1,363 participants across various countries, industries, and organizational roles. McKinsey adjusted the data to reflect each country’s contribution to the global GDP, ensuring a comprehensive representation.
Last year, McKinsey estimated that generative AI could add $2.6 trillion to $4.4 trillion annually to the global economy, accounting for 15% to 40% of the total economic impact of AI. Generative AI, a subset focused on creating new content using deep learning, has seen substantial growth in fields like text, image, music creation, and even limited 3D world generation.
The professional services sector, encompassing human resources, legal, and management consulting, has experienced the most significant increase in AI usage. These organizations leverage AI to handle repetitive tasks requiring human interaction. According to the report, “Organizations using generative AI apply it to an average of two functions, most commonly in marketing, sales, and product development.” In the sales sector alone, generative AI usage has more than doubled since last year.
As AI technology matures, companies are increasingly focused on mitigating its risks, particularly inaccuracies and intellectual property issues. The report notes that concern over inaccuracies rose from 56% to 63%, while worries about job displacement decreased from 34% to 27%. Environmental impact, political stability, and personal safety were the least concerning risks among respondents.
McKinsey’s findings highlight AI’s role in enhancing company profitability, with significant revenue growth reported in supply chain and inventory management. Additionally, many organizations are customizing AI solutions or developing proprietary models to meet specific business needs, a trend prevalent in industries with high public engagement.
The report also notes a marked increase in generative AI usage in personal and professional contexts, driven by popular tools like ChatGPT, MidJourney, and Stable Diffusion. These tools are expanding AI applications beyond business, into entertainment, education, and social interaction.
For McKinsey, AI is more than just a hype or business trend. Generative AI is proving to be a transformative technology. The report concludes, “If 2023 was the year the world discovered generative AI, 2024 is the year organizations begin to truly harness and extract business value from this emerging technology.”
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Keywords:
AI adoption, generative AI, McKinsey report, AI in China, AI business value, AI innovation, global AI trends, AI technology, artificial intelligence growth
