Two and a half years after the launch of ChatGPT, generative AI has reshaped the way companies utilize artificial intelligence. Artificial intelligence had its place in companies even before that, as it was used for predictions, classifications, and optimizations.
McKinsey’s research ‘The Economic Potential of Generative Artificial Intelligence: The Next Frontier of Productivity’ showed that the estimated potential value was already enormous – between $11 and $18 trillion globally, but AI was mostly the domain of experts, so the pace of adoption among employees was slow.
According to our research, from 2018 to 2022, the application of AI was relatively stagnant, with approximately 50 percent of companies using the technology in only one business function. Generative AI, through the synthesis of information, content generation, and communication in human language, has expanded the reach of traditional artificial intelligence, and our estimate is that this technology can unlock up to $4.4 trillion in additional value on top of the existing potential of analytical AI.
The Paradox of Generative AI
Our latest global research on AI ‘The State of Artificial Intelligence: How Organizations are Transforming to Capture Value’ showed that more than 78 percent of companies today use generative AI, but just as many report that this usage has not made any tangible contribution to the company’s earnings.
The paradox is that despite all the investments and potential of this technology, a greater economic return has not yet been realized for most organizations using it. LLMs (large language models) have revolutionized the way organizations work with data, but they are fundamentally reactive and isolated from business systems. This is where the next step in AI development comes in, which is AI agents, marking the transition of generative AI to autonomous task execution.
They operationally take over routine tasks, but also, as our research ‘Harnessing the Advantages of Agent-Based Artificial Intelligence’ states, transform processes in five ways: they accelerate task execution, bring flexibility as they can change processes on the fly, enable personalization by tailoring interactions to customer or service user behaviors, provide elasticity as their execution capacity can expand or contract in real-time, and increase resilience by monitoring potential disruptions within the system.
