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AI Adoption Soars in 2024, Breaking Years of Stagnation

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AI Adoption Soars in 2024, Breaking Years of Stagnation

AI Adoption Soars in 2024, Breaking Years of Stagnation

A recent McKinsey survey conducted on May 30th reveals a significant surge in AI adoption across organizations. As of March 2024, 72% of organizations have implemented AI in at least one area, a notable increase from 55% in 2023. Furthermore, 50% of respondents reported AI adoption in multiple business functions, compared to 33% in the previous year.

The most substantial growth was observed in the utilization of generative AI, with the proportion of organizations reporting its use doubling from 33% to 65% between 2023 and 2024. This recent surge in AI adoption disrupts the long-standing stagnation in the field, marking a turning point in AI’s integration into various industries.

The survey also highlighted a rise in AI use both within and outside of work, particularly among individuals in higher seniority positions. Geographically, Asia-Pacific and Greater China experienced the most significant growth in AI utilization.

The adoption of AI is predominantly concentrated in marketing and sales (34%) and product and service development (23%), areas identified as having substantial value potential. Additionally, 17% of respondents reported AI implementation in IT functions, an area not previously highlighted in McKinsey’s research.

Interestingly, the survey noted a near-equal likelihood of firms investing 5% of their digital budgets in generative AI as in analytical AI. Generative AI investments have primarily led to reduced human resource costs and substantial revenue increases in supply chain and inventory management, while analytical AI investments have predominantly yielded cost benefits in service operations and notable revenue gains in revenue and sales.

These findings coincide with Nvidia’s recent announcement of a new generation of AI chips called Rubin, following the earlier release of Blackwell. Nvidia plays a pivotal role in the AI revolution, holding an estimated 70% to 95% of the AI chip market share. Its competitor, AMD, also unveiled its new line of AI chips on May 3rd.

These developments underscore the accelerating pace of AI adoption and innovation, promising a transformative impact on various sectors and industries.

AI Adoption Soars in 2024, Breaking Years of Stagnation

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