As large cloud and software providers race to unfurl new enterprise AI offerings, a new McKinsey report says banks and retail are the business sectors first in line for the biggest boost from generative AI, Axios' Ryan Heath reports.

• In these and other companies, 75% of the productivity gains from generative AI will come from just four business functions: customer operations, marketing and sales, software engineering and R&D.

Why it matters: AI providers are starting to deliver specific tools to transform predicted AI productivity gains from theory to reality.

• The higher the pay and education associated with a work function, the more susceptible it will be to AI's impact, according to McKinsey.

Driving the news: Oracle on Tuesday announced an end-to-end platform for generative AI services, a day after Salesforce launched its Cloud AI offering.

• Both are branded as privacy- and security-focused and are designed to appeal to regulated industries.

What's happening: McKinsey studied 63 practical uses of generative AI across 2,100 existing work activities to assess its potential.

• McKinsey expects activities that consume about two-thirds of our work time today to be automated over the next 20 years.
• A key example is R&D, where the emerging field of generative design — turbocharged by foundation models that enable faster drafting and testing of products and services — will provide big efficiencies, per McKinsey.

By the numbers: Generative AI could deliver total value between $2.6 trillion to $4.4 trillion a year, a sum greater than the GDP of Germany, the world's fourth-largest economy.

• Retail and packaged consumer goods companies would be in line for $660 billion a year in productivity gains, if "use cases were fully implemented" — which would mean a 44% boost to profits.
• Banks, which tend to have higher profit margins, wouldn't receive as big a boost to profits (9% to 15%) but stand to gain up to $340 billion annually.

Of note: McKinsey held back from attaching a timeline to these gains.

Yes, but: While innovators and researchers agree on the huge potential of generative AI, even bigger dividends are possible from non-generative AI — the basic machine-learning and analytics technology that has been steadily evolving for the past 15 years.

• McKinsey estimates extensive use of non-generative AI would deliver $11.0 trillion to $17.7 trillion economic value, roughly four times that of generative AI.
• These rosy scenarios come with a warning: "Significant human oversight is required," and there's no replacement for human "strategic thinking specific to each company's needs."

What they're saying: Michael Chui, partner at McKinsey Global Institute, which prepared the report, told Axios he was most surprised to see generative AI's impact "is highest for occupations which have the highest educational requirements and wage rates."

• Antonio Neri, CEO of Hewlett Packard Enterprises, told Axios that much of realizing AI's potential pivots around making better use of data. Companies today are "exploiting only about 10% of the data they're accumulating," he said.

Meta and Microsoft joined a group working to promote responsible practices in the development, creation and sharing of media created by AI, per an announcement Wednesday shared first with Axios Pro's Ashley Gold.

Driving the news: The two tech giants, both pushing forward with respective generative AI projects, are joining the Partnership on AI group working on the framework, with plans to meet later this month to discuss recommendations and case studies.

• The group is working on technical, legal and social implications of AI-generated work.
• "Meta is excited to join the cohort of supporters of Partnership on AI's Responsible Practices for Synthetic Media and to work with PAI on developing this into a nuanced approach to educating people about generated media," Nick Clegg, president of global affairs at Meta, said in a statement.
• "We're optimistic about the developments in this space and about using this technology to bring more tools for creative expression to our community."

Be smart: Adobe has its own Content Authenticity Initiative (CAI), launched four years ago, that allows the provenance of an image to be tracked over time, including how and when it was altered, Axios previously reported.

• CAI and the new framework from Partnership on AI are "separate but complementary initiatives," said Aimee Bataclan, spokesperson for the Partnership on AI, with the framework giving recommendations for anyone creating and distributing media.

Our thought bubble: Tech industry groups generally gather together to establish best practices and guidelines to head off the imposition of more formal regulation.

• The companies involved here are well aware that regulation will likely come for AI, and in most cases they're embracing that. But they're also grabbing a chance to push their own ideas forward in the name of responsibility while lawmakers decide what to do.

Generative AI has already lowered the bar for cybercriminals looking to clone someone's voice and use it in their schemes, Axios' Sam Sabin reports.

Why it matters: Cybercriminals now need as little as three seconds of someone's voice to successfully clone it and make it usable in a scam call thanks to generative AI tools, researchers at McAfee have found.

• People are already losing money from these incidents: In a recent McAfee survey, 77% of victims in AI-enabled scam calls said they lost money. More than a third of those victims lost more than $1,000.

The big picture: Scam phone calls have often taken the form of mass robocalls pretending to be a health care provider, the Internal Revenue Service or even a provider looking to extend someone's auto warranty.

• AI-enabled voice scams use generative AI-enabled voice-cloning services to take these one step further and make the calls seem like they're coming from a loved one.

How it works: So far, these AI-enabled voice scams are building on an age-old scheme that targets family members and loved ones.

• In the original scam, someone would call pretending to be the police and claiming that a friend or family member needs money quick to get out of legal trouble.
• Now, using AI, the scammer can pretend to actually be someone's child or other relative using a clone of the real relative's voice.

What they're saying: "It's just a very easy-to-use medium, and the attacker doesn't have to have really any expertise in artificial intelligence," Steve Grobman, chief technology officer at McAfee, told Axios.

By the numbers: Nearly half of adults (45%) said in McAfee's survey, released last month, that they would respond to a voice note or voicemail from a friend or loved one asking for money.

Be smart: Experts suggested that people adopt code words between themselves and loved ones to use during calls of distress — or just hang up and immediately call back to confirm a loved one's identity.

On Tap

• Viva Technology runs today through Saturday in Paris. Speakers include Elon Musk, Marc Benioff and Meta chief AI scientist Yann LeCun.

Trading Places

• Logitech said CEO Bracken Darrell is stepping down. Board member Guy Gecht will serve as interim CEO.
• Fixed wireless internet provider Starry, which is aiming to emerge from Chapter 11 bankruptcy reorganization, named COO Alex Moulle-Berteaux as CEO.
• SurveyMonkey announced Eric Johnson has been promoted to CEO.

ICYMI

• Reddit's CEO told employees that the current backlash over API pricing changes will pass, but also warns employees they may not want to wear the company logo in public. (The Verge)

In advance of Father's Day, I offer you this video of a baby gorilla meeting his dad.