Larger companies embrace AI faster than smaller firms

Companies making over $500 million in yearly revenue are moving faster to adopt Artificial Intelligence (AI) compared to smaller businesses. This finding comes from a recent report by McKinsey. The report states that larger companies are using generative AI in more areas of their organizations. They are starting to set up the necessary structures and processes to gain real benefits from this technology. Even though it is still early in the adoption stage, these companies are changing workflows and improving risk management. AI usage overall continues to grow, with more than 75% of surveyed organizations reporting that AI is part of at least one business function. The report notes a rapid increase in the use of generative AI, particularly in marketing, product development, service operations, and software engineering. The report also discusses how companies are organizing their AI strategies. For managing risk and compliance, many organizations prefer a centralized approach, often through a center of excellence. In contrast, for tech talent and implementing AI solutions, a mixed approach is more common, distributing some resources while centralizing others. Finally, the report reveals that companies are becoming more proactive about managing risks associated with generative AI. Respondents indicated a higher likelihood of actively addressing concerns about inaccuracies, cybersecurity threats, and intellectual property issues compared to early 2024.