
A recent McKinsey Global Survey found that 65% of organizations are regularly using AI, nearly double the number from a survey from just ten months ago. The biggest increase in adoption is from those in professional services.
Where are organizational investments in AI paying off and where are they falling short? We can turn to McKinsey’s “high performers,” to learn the do’s and don’ts of maximizing value while mitigating common challenges and risks.
High performer commonalities
High-performing companies are those that see the value of Generative AI, apply it broadly across the business, and proactively address its challenges. They have implemented practices to maximize AI’s benefits while managing its difficulties. As a result, departments like supply chain & inventory management and marketing & sales are seeing significant revenue increases of 5% or more, and cost decreases in human resources and service operations.
The truth about AI risks
With every exciting disruption in innovation comes risks, namely data privacy and security concerns. It may come as a surprise that the “robots are coming for my job,” fear of labor displacement is far outweighed by threats to cybersecurity and data inaccuracies. Lareina Yee, McKinsey Technology Council Chair cautions organizations to set up guardrails and continuous monitoring practices for safer implementation, “leading companies in deploying Gen AI incorporate risk practices in the development of their AI applications.” Companies nervous to take on the risks of AI can take comfort in those bold enough to lead the charge, as they are paving the way for best practices.
So, what are companies doing right?
- Broad Application: High-performing companies benefit the most by adopting AI across multiple business functions rather than limiting it to one or two departments. On average, they use AI in three business functions, compared to two for others. While Marketing, Sales, IT, and Product Development are common areas for AI implementation, these top performers also apply AI in project management, risk management, legal, compliance, strategy, corporate finance, and supply chain management.
- Risk Reviews: Early and continuous monitoring is a recipe for success. Companies should, “shift left,” meaning start testing and performance evaluation early in the process for responsible and successful adoption.
- Mitigating Challenges with Training: High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management. “Competitive advantage comes from building organizational and technological capabilities to broadly innovate, deploy, and improve solutions at scale—in effect, rewiring the business for distributed digital and AI innovation.”
Getting value out of AI
“The greatest rewards also will go to those who are not afraid to think big,” says McKinsey Senior Partner, Alex Singla. An AI-powered Portfolio Management platform like OnePlan answers this call with customizable solutions for every department in the enterprise, helping you to both think big and act strategically.
With the value of AI no longer in question, high performers show us that a deep understanding and continuous curiosity prove pivotal to successful adoption. That’s why OnePlan is proud to offer access to experts along every step of the way, with ongoing learning opportunities in the OnePlan Academy, our online educational learning platform that’s now offering in-person training “bootcamps.”
As your organization embarks on its AI journey, OnePlan is here to support you in harnessing the full potential of AI, ensuring you not only keep pace with industry leaders but also set new standards for success.