Saturday, January 22, 2022

AI Provides Greater Cost Reduction Than Revenue Enhancement Benefits in 2020

A McKinsey survey of global enterprise executives suggests they believe artificial intelligence is boosting bottom line results by about five percent. Some 27 percent of respondents agree with that claim. 


source: McKinsey 


And while AI’s revenue benefits have held steady or even decreased since the previous survey—especially for supply-chain management, where AI was unlikely to compensate for the pandemic era’s global supply-chain challenges—the opposite is true of costs, McKinsey says. 


Respondents report significantly greater cost savings from AI than they did previously in every function, with the biggest year-over-year changes in the shares reporting cost takeout from using AI in product and service development, marketing and sales, and strategy and corporate finance.


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