Artificial intelligence is a much-discussed buzzword in boardrooms around the world, but a lot of companies are still keeping it at arm's length, fearful that it's too complex and won't pay off fast enough, according to McKinsey Global Institute, a think tank.
Why it matters: In a study released today, McKinsey ferrets out 400 practical current use cases for AI that it says could be worth $3.5 trillion a year in savings and sales.
The background: The backdrop to the MGI study is the workhorse of the industrial age: the steam engine. Businesses in the 1700s, using animals, wind and water for power, did not immediately switch to steam, despite its obvious superiority. The transformation took more than a century, says Carl Frey, director of the Technology and Employment program at Oxford University.
Similarly, McKinsey's Michael Chui, the study's main author, tells Axios that the adoption of AI in the 21st century economy could take a long time. But he cites a lot of non-exotic ways that businesses can lucratively incorporate AI now. Examples are:
But, but, but: If history is a teacher, it is still not clear that companies — even presented with the McKinsey map — will respond quickly. This is because even basic AI can't simply be plugged in and used. A company must have already established a digitized eco-system into which the AI will be integrated, Chui said.
