Companies with innovative cultures have a big edge with generative AI
Read time: 1.5 min
Big Idea
Generative AI offers opportunities, but successful deployment requires an innovative culture, strategic implementation, and measures to address challenges like data privacy and bias; innovative companies capitalize on generative AI's capabilities at a much higher rate than their peers.
Top Thoughts
Effectively implementing generative AI can transform businesses and produce a competitive edge, especially in innovation and R&D.
Organizations with a strong innovation culture are more likely to have the vision, strategy, and resources to drive disruptive innovations.
Strategic deployment and proper integration is necessary to capture the investment value of generative AI and deliver expected returns.
Companies with tech-savvy leaders and agile, cross-functional teams more easily understand the limitations and possibilities of the technology and integrate it effectively.
Correctly manage privacy and bias to avoid leaking intellectual property and sensitive data into the public domain.
Do not fall into the "garbage in, garbage out" trap. Ensure quality questions are being asked and good data is available.
Generative AI increases agility and adaptation by accelerating decision-making and execution without requiring a human touch.
Quick Quotes
"Most organizations struggle to capture the full value of their digital investments, and generative AI could play out the same way if leaders deploy it without priming their organizations to reap the benefits."
"Thirty percent of top innovators we surveyed said they are already deploying generative AI at scale in their innovation and R&D functions, more than six times the rate of companies that are lagging behind on innovation."
"In our new survey, 78 percent of respondents say their current business model would need to change 'moderately to completely' in order to remain economically viable by 2025."
"Gen AI can write code that will write more code and improve itself. This can be deployed not only to refine the questions it is being asked but also to move directly from idea to execution with no human touch."
Actionable Advice
Adopt an AI-led operating model - Embed AI capabilities directly into the organization's operating model and structure business operations to be more data-driven and agile. Explore self-learning and self-writing code to allow "no-human-touch" decision-making and identify key workflows to maximize efficiency gains.
Company culture and training - Encourage a culture of innovation and train teams to understand the limitations and capabilities of AI and how to effectively deploy AI.
Source(s)
Banholzer, M., McClain, J., Fletcher, B., & LaBerge, L. (2023, Aug 22). Companies With Innovative Cultures Have A Big Edge With Generative AI. [Web article]. McKinsey & Company. (Link)
