In a report by research firm McKinsey, AI adoption is accelerating in 2024 as generative AI begins to create value.

According to research firm McKinsey’s Global Survey on AI, AI adoption is on the rise in 2024. The percentage rise has almost doubled from the previous survey which was held 10 months ago. In addition to this significant increase in AI adoption, McKinsey reports that generative AI has also begun to create value for the organizations that use the technology. Benefits have come in the form of decreases in costs as well as revenue jumps.

In the McKinsey survey, 65% of respondents said that their organizations are regularly using generative AI. At the same time, expectations for the impact of generative AI remain high. Three-fourths of respondents predict that AI will lead to disruptive change in their respective industries in the coming years.

While the survey presents a favorable outlook for the future of generative, the McKinsey report also provides insights into the risks of AI. In particular, it discusses the challenge of inaccuracy that results from generative AI and how companies answer this challenge.

Surge in AI Adoption, Use of Generative AI

AI adoption is at an all-time high in 2024, at 72% of respondents. This is a considerable rise from 55% in the previous year. By industry, the greatest increase in adoption is in professional services.

Not only are more companies using AI, they are also using it in more parts of their business. Half of respondents reported using AI in two or more business functions.

Investments in Generative AI Are Beginning to Create Value

Together with increased AI adoption in general, generative AI is finding its way into business processes. 65% of respondents reported using generative AI in at least one business function. The greatest rise of gen AI adoption was in marketing and sales, where it more than doubled.

Where are these businesses experiencing increased value from their investments? According to McKinsey, the largest share of respondents seeing cost decreases employed AI in human resources. Meanwhile the largest group of respondents seeing revenue increases employed AI in supply chain and inventory management. Meaningful revenue increases were also reported in marketing and sales as well as cost benefits in service operations.

Risks of AI

While the McKinsey survey highlights the successful adoption of AI across business around the world, it also notes that some organizations have experienced negative consequences from the use of generative AI. Under half, or 44%, of respondents reported that their organizations experienced at least one negative consequence. Inaccuracy was the most common problem, followed by cybersecurity.