In the year 2023, the world learned about AI. The people’s reaction to this technology varied. Some have welcomed it, and some have not.
However, in the latest report from McKinsey, organizations around the world that apply generative AI in their daily operations are increasing in numbers in 2024.
According to Mckinsey’s global survey on AI from February to March 2024, the dramatic increase of 72% marks a significant rise from the past six years, during which AI adoption hovered around 50% only.
- GenAI adoption is quicker in areas where it is seen to generate more value
In the study it was found that 65% of organizations are now regularly using gen AI, with most applying it to two key functions: marketing and sales (34%), and product and service development (23%).
In a previous research of Mckinsey, these two business functions were said to be one of the areas that would generate great value for organizations in 2024. Today, now that businesses have seen the potential of AI, they have begun to include it in their budgeting.
Similarly, McKinsey also found that organizations in most industries are investing at least five percent of their digital budgets to generative AI and analytical AI.
Among the industries mentioned, from technology to healthcare, it is the energy and materials industry that has 17% of its organizations investing more than 20% of their digital budget in generative AI.
Meanwhile, the technology industry has 18% of its organizations that invest more than 20% of their digital budget in analytical AI technology. - People are now more likely to admit they use AI regularly
From 14% in 2023, 26% of the respondents now admit to use Gen AI for work and outside of work. Moreover, the percentage of organizations admitting to have used AI at least once went five steps down from last year’s 40%.
There’s also a dramatic increase of generative AI tools usage by job titles. C-level executives, from only 16% in 2023, have increased in percentage by 10 tiles this year.
By industry, the business, legal, and professional services sector takes the top spot with the most increase in organizations using gen AI for both work and outside work in 2024.
In 2023, it only had 16% of the respondents, but then it soared to 38% in 2024. It is followed by the media and telecom industry. Thirty percent of this year’s respondents from the said industry are now using generative AI tools for both work and outside work. Last year, it only had 12% of the respondents admitting to using generative AI tools.
Meanwhile, the industry with the least amount of increase is the financial services sector, having only a two percent increase from 16% in 2023 to 18% in 2024.
3. Organizations are trying to ‘mix-n-match’ AI to fit their needs
The survey found three archetypes for generative AI solutions, namely, takers, shapers, and makers. Takers make use of “publicly available” tools, the shapers customize those tools with the right data and structure, and the makers create their own foundation models from nothing.
In the study, McKinsey found organizations to combine publicly available generative AI and develop their own models. However, the overall division presents that 53% of organizations in all of the industries use “off-the-shelf” generative AI tools with the very least to no amount of customization. Forty seven percent employ a significant amount of customization or development of their own model.
The energy and materials industry came on top among the eight industries included in the study, with 60% of its industries customizing and developing their own models. Meanwhile, the business, legal, and professional service industry lead the survey with 63% of its respondents admitting to using publicly available generative AI tools instead.
Wrapping Up AI’s 2024 Evolution
The 2024 McKinsey report reveals rapid AI adoption, with 72% of organizations now using generative and analytical AI, primarily in marketing, sales, and product development.
As AI becomes more integrated into business operations, companies are increasing their digital budgets to fully leverage its potential. The report also highlights a growing comfort with AI in both personal and professional settings, with industries either using off-the-shelf tools or creating custom models to suit their needs.
AI is no longer just an emerging trend—it’s a key driver of digital transformation, with adaptable organizations poised to reap the most benefits.
