McKinsey has recently published a study that looks at Applied Artificial Intelligence, a branch of AI that brings it out of the lab and into the real world, enabling computers and computer-controlled robots to execute real tasks. The report is part of a global document called McKinsey Technology Trends Outlook 2022. In particular, the study provides answers to the following questions:
- What is the trend (Applied AI) about?
- Why should leaders pay attention?
- What are the most noteworthy technologies?
- What industries and functions are leading in the adoption of AI applications?
- What industries are most affected by the trend?
- What are some use cases for applied AI?
- What should a leader consider when engaging with the trend?
- What are some topics of debate related to the trend?
Applied AI uses intelligent application to solve classification, prediction, and control problems to automate, add, or augment real-world business use cases. As AI technologies rapidly push new frontiers of innovation, business adoption continues to grow across use cases. A diverse set of stakeholders across all industries are experiencing implications from applied AI, which can include disruption in value chains, better financial outcomes, and improved operations.
The study also lists the most common benefits observed while implementing Applied AI across organizations:
- Cost savings: Up to 90% of survey respondents cited cost decreases in 2020;
- Overall revenue increase: Up to 75% of survey respondents cited revenue increases in 2020;
- New use cases: New use cases will unlock new business capabilities and opportunities across automation and acceleration;
- Increased access to AI and ease of implementation: New technologies and practices, such as ML operations and software automation, should make AI more readily available.