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

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If they can make their numbers using other, less risky tactics, our experience suggests that they (quite rationally) will. Generative AI could significantly reduce the time required for ideation and content drafting, saving valuable time and effort. But as they come closer to commercializing a new product or service, they become narrower and more specific in their sourcing, since by then the new offering’s design is relatively set. We have analyzed the potential for remote work—or work that doesn’t require interpersonal interaction or a physical presence at a specific worksite—in a range of countries, China, France, Germany, India, Japan, Mexico, Spain, the United Kingdom, and the United States.

Entos, a biotech pharmaceutical company, has paired generative AI with automated synthetic development tools to design small-molecule therapeutics. To encourage innovation projects, these quantitative targets were cascaded down to business units and, ultimately, to product groups. It is important to consolidate the opinions of top management and create a generic optimal organizational design that will allow the company to set realistic goals and achievable objectives. He described this article as a "tentative presentation" and "the first public expression of these ideas.Generative AI can help product designers reduce costs by selecting and using materials more efficiently. It helps to combine high-level aspirations with estimates of the value that innovation should generate to meet financial-growth objectives. Clear milestones, such as when AlphaGo, an AI-based program developed by DeepMind, defeated a world champion Go player in 2016, were celebrated but then quickly faded from the public’s consciousness.

Thus, generative AI has more impact on knowledge work associated with occupations that have higher wages and educational requirements than on other types of work. More recently, computers have enabled knowledge workers to perform calculations that would have taken years to do manually. And the more quickly and frequently a project team gets—and uses—feedback, the more quickly it gets a great end result. We estimate that generative AI could further reduce the volume of human-serviced contacts by up to 50 percent, depending on a company’s existing level of automation. We analyzed only use cases for which generative AI could deliver a significant improvement in the outputs that drive key value.Quantifying an “innovation target for growth,” and making it an explicit part of future strategic plans, helps solidify the importance of and accountability for innovation. The best companies find ways to embed innovation into the fibers of their culture, from the core to the periphery. Strategy refers to a well-curated business plan that allows the company to formulate a plan of action to achieve a sustainable competitive advantage, reinforced by the company’s mission and values. The virus has broken through cultural and technological barriers that prevented remote work in the past, setting in motion a structural shift in where work takes place, at least for some people.