The real-world potential and limitations of artificial intelligence

In this episode of the McKinsey Podcast, McKinsey Global Institute partner Michael Chui and MGI chairman and director James Manyika speak with McKinsey Publishing's David Schwartz about the cutting edge of artificial intelligence. Today, we're going to be journeying to the frontiers of artificial intelligence. We'll touch on what AI's impact could be across multiple industries and functions. We'll also explore limitations that, at least for now, stand in the way. I'm joined by two McKinsey leaders who are at the point of the spear, Michael Chui, based in San Francisco and a partner with the McKinsey Global Institute, and James Manyika, the chairman of the McKinsey Global Institute and a senior partner in our San Francisco office. Michael Chui: Great to be here. David Schwartz: Michael, where do we see the most potential from AI? Michael Chui: The number-one thing that we know is just the widespread potential applicability. That said, we're quite early in terms of the adoption of these technologies, so there's a lot of runway to go. One of the other things that we've discovered is that one way to think about where the potential for AI is, is just follow the money. If you're a company where marketing and sales is what drives the value, that's actually where AI can create the most value. If you're a company where operational excellence matters the most to you, that's where you can create the most value with AI.