A new study by the global management consulting firm McKinsey has revealed a significant surge in adopting artificial intelligence (AI) worldwide.

The study surveyed more than 1,363 respondents and found that over 70% of businesses and organizations now use AI in at least one business function. This marks a substantial increase from the approximate 50% adoption rate observed just a year ago.

In the survey, 72% of respondents said their organizations had adopted some form of AI, and 65% reported regular use of generative AI.

This is a remarkable rise from the 33% rate reported in 2023. The impact of AI and generative AI extends across borders and industries, with the most significant increases seen in Asia-Pacific and China.

Widespread Adoption and Regional Growth

Last year, AI adoption did not exceed 66% in any region. However, This year, more than two-thirds of respondents in nearly every region report their organizations using AI.

The Asia-Pacific region and China showed the most significant increases, highlighting the global trend towards embracing AI technologies.

The study, conducted through an online survey in early 2024, included responses from diverse participants. McKinsey ensured the data set represented various regions, industries, company sizes, functional specialties, and tenures.

The data was weighted by the contribution of each respondent's nation to the global gross domestic product (GDP) to account for differences in response rates.

Generative AI: A Game Changer

Generative AI, a subset of AI that focuses on creating new content, has seen a significant rise in usage. Traditional AI systems analyze and interpret data, make decisions, and solve problems based on pre-existing information.

In contrast, generative AI uses deep learning techniques to generate new data that resembles the training dataset. This can include creating text, images, music, and even limited 3D worlds.

"The average organization using gen AI is doing so in two functions, most often in marketing and sales and product and service development," the study notes. In sales alone, generative AI has more than doubled since last year.

Mitigating Risks and Customization

As AI use matures, organizations are more focused on mitigating its risks, particularly those related to hallucinations and intellectual property infringement.

The top concern among respondents was tackling inaccuracy, rising from 56% to 63%. Workforce and labor displacement concerns have decreased from 34% to 27%. Respondents were least worried about environmental impact, political stability, and physical safety.

McKinsey reports that many organizations use more than just off-the-shelf AI solutions; they customize or develop their proprietary models.

This trend toward tailoring AI technologies to meet specific business needs and achieve competitive advantage is particularly prevalent in industries with high public engagement.

In addition to business use, there has been a significant increase in the use of generative AI in personal lives.

With the explosion of tools like ChatGPT, MidJourney, and Stable Diffusion, people are now exploring generative AI for entertainment, education, and even simulating social interactions.

For McKinsey, AI is proving to be more than just hype or a business trend. Generative AI is emerging as a business-changing technology.

The report concludes, "If 2023 was the year the world discovered generative AI, 2024 is the year organizations truly began using -- and deriving business value from -- this new technology."