AI adoption doubles in half-decade; challenges remain

Artificial intelligence (AI) is rapidly transforming the world around us. From the way we work to the way we live, AI is having a profound impact on our society. In this article, we will discuss the findings of a survey conducted by McKinsey on the state of AI in 2022.

The survey found that AI adoption has more than doubled since 2017 but has plateaued in the past few years. The top use cases for AI are optimisation of service operations and marketing and sales. AI is having a positive impact on the bottom line of organizations. However, there are still some challenges that need to be addressed, such as the lack of diversity in AI teams.

AI Adoption

One of the most significant findings of the survey is that AI adoption has more than doubled since 2017. In 2017, only 20% of organisations had adopted AI in at least one function. By 2022, this number had increased to 50%. This growth is being driven by several factors, including:

1.       The increasing availability of data. AI models are trained on data, so the more data that is available, the better AI models can perform.

2.       The decreasing cost of computing power. AI models require a lot of computing power to train and run, so the decreasing cost of computing power is making AI more accessible to organisations.

3.       The development of new AI algorithms. New AI algorithms are being developed all the time, which is making it possible to solve a wider range of problems with AI.

Optimisation of service operations includes tasks such as automating customer service processes, optimising supply chains, and predicting maintenance needs. For example, AI is being used to develop chatbots that can answer customer questions and resolve issues quickly and efficiently. AI is also being used to optimise supply chains by predicting demand and routing inventory more efficiently.

Marketing and sales include tasks such as personalising marketing campaigns, predicting customer churn, and recommending products to customers. For example, AI is being used to develop personalised email marketing campaigns that are more likely to resonate with customers. AI is also being used to predict customer churn so that businesses can take steps to retain their customers.

Impact of AI on the Bottom Line

The survey found that AI is having a positive impact on the bottom line of organizations. 50% of respondents said that AI has increased their revenue by more than 5%. 25% of respondents said that AI has reduced their costs by more than 10%.

These findings are significant because they show that AI is not just a research project or a marketing gimmick. AI is a real-world technology that is helping businesses to improve their bottom line.

The survey also found a gap between AI leaders and other organisations. AI leaders are investing more in AI and are seeing bigger financial returns. For instance, AI leaders are more likely to have a dedicated AI team and to have a clear AI strategy. AI leaders are also more likely to be using AI in a variety of functions, such as marketing, sales, and product development.

Key findings

1.       50% of organisations have adopted AI in at least one function.

2.       The top use cases for AI are optimiation of service operations (50%) and marketing and sales (40%).

3.       50% of respondents said that AI has increased their revenue by more than 5%.

4.       25% of respondents said that AI has reduced their costs by more than 10%.

5.       Only 10% of AI teams are made up of women.

AI is a powerful technology that has the potential to transform many industries. However, there is still a gap between AI leaders and other organisations. Organisations need to invest in training their employees on AI and building diverse AI teams. They also need to be transparent about how they are using AI and address the concerns of their customers and employees.

Despite the challenges, AI is a rapidly growing and evolving field. It is important for organizations to stay ahead of the curve and to invest in AI. AI has the potential to help organisations improve their bottom line, increase efficiency, and create new products and services.