A global survey by consulting firm McKinsey reveals a significant surge in business adoption of AI, reaching 72% in 2024, up from 55% in 2023.
While 2023 marked the year of AI discovery for many businesses, 2024 has been characterized by widespread adoption. However, many businesses remain cautious about the inherent risks of AI technology.
McKinsey reports that over two-thirds of survey respondents from nearly every region indicated their organizations use AI. The professional services sector saw the largest increase in AI adoption. Companies are now integrating AI into more parts of their operations, with half of the respondents stating that their organizations have adopted AI in two or more business functions, up from less than a third in 2023.
The Risks
The report highlights that while businesses are reaping the benefits of generative AI, they are also becoming more aware of the associated risks. These risks include data management issues such as privacy, bias, intellectual property (IP) infringement, and model management concerns like inaccurate outputs or lack of explainability.
Security and misuse of AI also pose significant risks. More respondents this year, compared to last, consider inaccuracies and IP infringement relevant to their use of generative AI. About half continue to view cybersecurity as a major risk. Notably, 44% of respondents reported that their organizations have faced negative consequences from using generative AI.
Business Applications of AI
The report indicates that 65% of respondents say their organizations regularly use generative AI in at least one business function, up from one-third the previous year. The average organization now uses generative AI in two functions, most commonly in marketing and sales, product and service development, and IT. The most significant increase from 2023 is seen in marketing and sales, where adoption has more than doubled.
Compared to 2023, respondents are now much more likely to use generative AI at work and even in their personal lives.
Survey Details
McKinsey conducted the online survey from February 22 to March 5, 2024, with 1,363 participants from various regions, industries, company sizes, functional specialities, and tenures.
Additional Insights
While McKinsey’s report indicates a surge in AI usage, a similar report by the Reuters Institute and Oxford University showed that many people are still unaware of popular AI tools like ChatGPT, Google’s Gemini, and Microsoft Copilot.
The survey, conducted in six countries (Argentina, Denmark, France, Japan, the UK, and the USA), found:
- A sizable minority of the public (20%-30%) in the surveyed countries are unaware of the most popular AI tools.
- ChatGPT is the most widely used generative AI tool, two to three times more widespread than Google Gemini and Microsoft Copilot.
- Younger people are more likely to use generative AI products regularly, with 56% of 18-24-year-olds using ChatGPT at least once, compared to 16% of those aged 55 and over.
