Firms with $500M+ revenue embrace AI faster than smaller ones
What's the story
According to a recent McKinsey report, businesses with an annual revenue of at least $500 million are quicker to adopt artificial intelligence (AI) than their smaller counterparts.
The report notes, "The companies with more than $500 million in annual revenues are using GenAI throughout more of their organizations than smaller companies are."
These larger firms are starting to build structures and processes that leverage immense value from generative AI (GenAI).
AI integration
Larger firms are redesigning workflows
The report emphasizes that larger firms are still in the early stages of reimagining workflows, improving governance, and mitigating GenAI-related risks.
The adoption of AI, both GenAI and analytical AI, is picking up pace across industries.
More than three-quarters of survey respondents now say their organizations use AI in at least one business function, with a significant uptick in GenAI adoption.
AI application
GenAI is being used in marketing and sales
Survey responses show that firms are mainly leveraging GenAI in marketing and sales, product and service development, service operations, as well as software engineering.
The report also highlights how organizations are structuring their AI deployment efforts.
For risk and compliance, as well as data governance, organizations typically employ a fully centralized model like a center of excellence.
Risk management
Many organizations are ramping up their efforts
For tech talent and adoption of AI solutions, respondents most frequently report a hybrid or partially centralized model, with some resources managed centrally and others distributed across functions or business units.
The report also notes that many organizations are stepping up their efforts to mitigate GenAI-related risks.
Respondents are more likely than they were in early 2024, to report that their organizations are actively managing risks related to inaccuracy, cybersecurity, and intellectual property infringement.