Adoption has more than doubled since 2017, though the proportion of organizations using AI 1 1. In the survey, we defined AI as the ability of a machine to perform cognitive functions that we associate with human minds (for example, natural-language understanding and generation) and to perform physical tasks using cognitive functions (for example, physical robotics, autonomous driving, and manufacturing work). A set of companies seeing the highest financial returns from AI continue to pull ahead of competitors. The results show these leaders making larger investments in AI, engaging in increasingly advanced practices known to enable scale and faster AI development, and showing signs of faring better in the tight market for AI talent. On talent, for the first time, we looked closely at AI hiring and upskilling.

The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. You could say that when it comes to AI, companies today are engaged in a competition reminiscent of the '60s space race. So it should be no surprise that OODA, an old pilot's acronym for "observe, orient, decide and act," has been co-opted by those wanting to amass business advantages through the use of data and machine learning. The OODA loop for AI updates the language, but the intent is just the same. The more data you have, the better your models get.

We're only beginning to understand the full potential of AI, but here's what we do know: without doubt, it's foundational technology for IoT and the fourth industrial revolution. We also know that comp sci is just scratching the surface of what's possible well within the decade, with outcomes that not long ago would have caused more hilarity than knowing nods. "The fervor around state-of-the-art AI language models like Open AI's GPT-3 hasn't died down. Melanie Mitchell, a professor of computer science at Portland State University, found evidence that GPT-3 can make primitive analogies. Raphaël Millière, a philosopher of mind and cognitive science at Columbia University's Center for Science and Society, asked GPT-3 to compose a response to the philosophical essays written about it. Among other applications, the API providing access to the model has been used to create a recipe generator, an all-purpose Excel function, and a comedy sketch writer."

In this episode of the McKinsey on AI podcast miniseries, McKinsey's David DeLallo speaks with McKinsey Global Institute partner Michael Chui and associate partner Bryce Hall about the latest trends in business adoption of artificial intelligence (AI). They discuss where the technology is being used most across industries, companies, and business functions; the keys to getting impact from AI investments; and what lies ahead. There's no shortage of predictions about how it could fundamentally change the way we live and work. Over the past few years, companies around the world have been figuring out exactly how AI technologies can improve their performance in a number of areas across their business. But is AI actually delivering significant results? Moreover, what can we expect to see as we move into a new decade of AI use and development? To answer some of these questions today, I'm joined by Michael Chui, a McKinsey partner with the McKinsey Global Institute, who is based in our San Francisco office, and associate partner Bryce Hall from our Washington, DC, office.

The adoption of artificial intelligence (AI) in the enterprise continues: More than half (58 percent) of respondents to McKinsey & Company's recent global AI survey say their organizations have embedded at least one AI capability into a process or product in at least one function or business unit, up from 47 percent in 2018. Those increases were reported across all industries. What's more, nearly a third (30 percent) are using AI in products or processes across multiple business units and functions, McKinsey's data says. But, as the McKinsey research and others point out, some organizations are much further along in scaling their AI initiatives. What are teams succeeding with AI doing that others can emulate to propel their efforts?

In the latest McKinsey Global Survey on AI we noted a significant year-over-year jump in companies using AI across multiple areas of the business. And while most survey respondents said their companies have gained value from AI, some are attaining greater scale, revenue increases, and cost savings than the rest. Based on our research and experience, this is no accident; how companies build their business strategy, what foundations they put in place, and how they tackle AI adoption in the workplace can all impact their potential for transformation. Many companies that have spent years developing AI technologies are facing the stark reality that successfully scaling AI requires more than just deploying AI technology. We find that those companies finding more success in scaling efforts are more likely than others to apply a core set of practices.

In the latest McKinsey Global Survey on AI we noted a significant year-over-year jump in companies using AI across multiple areas of the business. And while most survey respondents said their companies have gained value from AI, some are attaining greater scale, revenue increases, and cost savings than the rest. Based on our research and experience, this is no accident; how companies build their business strategy, what foundations they put in place, and how they tackle AI adoption in the workplace can all impact their potential for transformation. Many companies that have spent years developing AI technologies are facing the stark reality that successfully scaling AI requires more than just deploying AI technology. We find that those companies finding more success in scaling efforts are more likely than others to apply a core set of practices.

Most companies report measurable benefits from AI where it has been deployed; however, much work remains to scale impact, manage risks, and retrain the workforce. A group of high performers shows the way, as explained in this article by Arif Cam, Michael Chui and Bryce Hall of McKinsey. Adoption of artificial intelligence (AI) continues to increase, and the technology is generating returns. The findings of the latest McKinsey Global Survey on the subject show a nearly 25 percent year-over-year increase in the use of AI2 in standard business processes, with a sizable jump from the past year in companies using AI across multiple areas of their business. A majority of executives whose companies have adopted AI report that it has provided an uptick in revenue in the business areas where it is used, and 44 percent say AI has reduced costs.

Yes, artificial intelligence (AI) is proving itself to be a worthwhile tool in the business arena -- at least in focused, preliminary projects. Intelligent chatbots are a classic example. Now it's a question of how quickly it can be expanded to deliver on a wider basis across the business -- to automate decisions around inventory or investments, for example. There's progress on this front, as shown in McKinsey's latest survey of 2,360 executives, which shows a nearly 25 percent year-over-year increase in the use of AI in various business processes -- and there has been a sizable jump in companies spreading AI across multiple processes. A majority of executives in companies that have adopted AI report that it has increased revenues in areas where it is used, and 44 percent say it has reduced costs, the survey's authors, Arif Cam, Michael Chui, and Bryce Hall, all with McKinsey, state.

Most companies report measurable benefits from AI where it has been deployed; however, much work remains to scale impact, manage risks, and retrain the workforce. A group of high performers shows the way. Adoption of artificial intelligence (AI) continues to increase, and the technology is generating returns. The findings of the latest McKinsey Global Survey on the subject show a nearly 25 percent year-over-year increase in the use of AI in standard business processes, with a sizable jump from the past year in companies using AI across multiple areas of their business. A majority of executives whose companies have adopted AI report that it has provided an uptick in revenue in the business areas where it is used, and 44 percent say AI has reduced costs.