Generative AI, a form of artificial intelligence that can create new content or make predictions, is transforming the way organisations operate. It has the potential to automate a significant portion of work, with McKinsey Global Institute estimating that 20% of CEO’s time could be automated using existing technologies. Despite this, many businesses are not yet leveraging generative AI to its full potential.

A key barrier is the ‘human side’ of AI. For AI to be successful, it needs to be accepted and used by the workforce. Employees often resist AI due to fear of job loss or concern about privacy. To overcome this, organisations must create a culture that embraces AI, providing training and support to help employees understand and use the technology.

Another obstacle is the ethical implications of AI. AI can sometimes make mistakes or produce biased results, which can lead to legal and reputational risks. Companies need to establish clear guidelines and controls to ensure responsible use of AI.

Finally, the lack of AI talent is a significant challenge. There is a shortage of skilled AI professionals, making it difficult for companies to implement and manage AI technologies. Businesses should invest in upskilling their workforce and attracting AI talent to stay competitive in the digital age.

In conclusion, generative AI offers enormous potential for productivity gains, but businesses need to address the human, ethical, and talent challenges to fully harness its power.

Go to source article: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-human-side-of-generative-ai-creating-a-path-to-productivity