The McKinsey Way: Using the Techniques of the World's Top Strategic Consultants to Help You and Your Business (MGMT & LEADERSHIP)

Product Information

We doubled down on managing our cash, our operations, maintaining quality, all the parts of the iceberg no one sees,” Goddijn adds. Staff refers to the personnel of the company, how large the workforce is, where their motivations reside, as well as how they are trained and prepared to accomplish the tasks set before them. This will require many shifts, such as investment in digital infrastructure, freeing up office space, and the structural transformation of cities, food services, commercial real estate, and retail.

It can also facilitate consistency across different pieces of content, ensuring a uniform brand voice, writing style, and format. We modeled scenarios to estimate when generative AI could perform each of more than 2,100 “detailed work activities”—such as “communicating with others about operational plans or activities”—that make up those occupations across the world economy. Our analysis finds that generative AI could have a significant impact on the pharmaceutical and medical-product industries—from 2. The McKinsey 7S Model is an organizational tool that assesses the well-being and future success of a company.They start back where we began: with aspirations that forge tight connections among innovation, strategy, and performance. By 2006, TomTom’s line of portable navigation devices reached sales of about 5 million units a year, and by 2008, yearly volume had jumped to more than 12 million. An internal McKinsey empirical study of software engineering teams found those who were trained to use generative AI tools rapidly reduced the time needed to generate and refactor code—and engineers also reported a better work experience, citing improvements in happiness, flow, and fulfillment.

Our updated adoption scenarios, including technology development, economic feasibility, and diffusion timelines, lead to estimates that half of today’s work activities could be automated between 2030 and 2060, with a midpoint in 2045, or roughly a decade earlier than in our previous estimates.

Generative AI could identify and prioritize sales leads by creating comprehensive consumer profiles from structured and unstructured data and suggesting actions to staff to improve client engagement at every point of contact. Management, business services, and information technology have the next highest potential, all with more than half of employee time spent on activities that could effectively be done remotely (Exhibit 2). As employees have gained experience working remotely during the pandemic, their confidence in their productivity has grown, with the number of people saying they worked more productively increasing by 45 percent from April to May. Innovation is inherently risky, to be sure, and getting the most from a portfolio of innovation initiatives is more about managing risk than eliminating it. The technology can also “hallucinate,” or generate responses that are obviously incorrect or inappropriate for the context.