McKinsey’s Noshir Kaka: In AI, Standing Still Means You’re Dead
Summary
Companies are spending more money on artificial intelligence (AI) and the related technology needed to support it. This shift is causing older technology services to lose money, while new markets for AI infrastructure and software are expanding quickly.Key Facts
- About 72% of business executives surveyed are increasing their technology budgets by 6 to 8%.
- Spending is growing mainly on data centers, AI tools, and the infrastructure that supports AI.
- Companies are cutting costs in older, legacy technology services to fund AI investments.
- Only 13% of companies surveyed are using AI widely across their whole business; most are still testing or using it in limited ways.
- Using AI to improve entire business processes can bring five to ten times more financial benefit than small, narrow AI projects.
- Some companies use AI to predict and prevent quality issues in manufacturing instead of just fixing problems after they happen.
- AI is helping technology service firms update older software systems and enter new markets.
- Software firms are adding more services through flexible AI products, blurring the line between software and services businesses.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.