... 4,5,6 McKinsey AI Report, 2017 ; Based on HPE Nimble Storage’s installed base . Figure 4: Few functions have implemented AI at scale Scaled implementation is highest in Digital/Mobility Services, followed by Information Technology and Manufacturing. The McKinsey State of AI in 2020 global survey was conducted online from June 9 to June 19 and garnered nearly 2,400 responses, with 48% reporting that their companies use some form of AI… Initial use cases have been found for AI-supported systems that enhance care – for instance, in the development of customized offers for patients suffering from chronic diseases or for identifying clinical pathways that fail to adhere to guidelines. AI in transportation and logistics allows saving time and money due to the automation of time-consuming processes. McKinsey uses their AI Readiness Index to provide insight into how countries perform in relation to each other. No wonder giant tech companies like Google, Amazon, Intel invest their resources into AI. The ability for sensors to monitor machines and pass this data along to algorithms that determine if there's a problem can decrease downtime of equipment and thus increase output for any … Initial use cases have been found for AI-supported systems that enhance care—for instance, in the development of customized offers for patients suffering from chronic diseases or for identifying clinical pathways that fail to adhere to guidelines. Much of the claims journey in traditional insurance companies requires hours of manual effort by employees. “The use cases that most commonly led to cost decreases are optimisation of talent management, contact-centre automation, and warehouse automation. This potential for AI regarding social good and the SDGs is illustrated by this said study by the MGI, which by November 2018 had identified as many as 135 cases of AI use worldwide that support the SDGs. The attention currently devoted to developing algorithms should be balanced with at least as much energy and resources to make sure these tools are widely available and used on the front line of disaster relief. Learn from the best. Another example is the use of AI in the manufacturing industry to increase efficiency. Over half of respondents who report adopting each of those say the use of AI in those areas reduced costs.” IF THEN bottom line. McKinsey estimates AI techniques have the potential to create between $3.5T and $5.8T in value annually across nine business functions in 19 industries. McKinsey is the gold-standard for presentations. Because of its generic nature, AI will have an impact on all business sectors, our private lives and society as a whole. By Katherine Heires . But what about government? Whether concrete, partial or simply potential, these cases demonstrate real opportunities for AI … HPE offers pre-integrated, tested reference AI use case solutions to pilot and evolve your AI initiatives rapidly. Organizations are turning to algorithms to improve fleet management, warehouse administration, logistics processes, freight brokering and numerous other tasks. We at McKinsey Global Institute have collected about 160 cases of AI’s actual or potential uses for noncommercial benefit of society, and can see considerable potential for computer vision, natural language processing, even deep learning applied to traditional databases, as well as other AI capabilities, to make a very sizeable difference. Product Support. McKinsey’s Global AI survey has found that the use of artificial intelligence (AI) in automating business processes has increased by 25% year on year, yet a number of sectors are struggling. McKinsey AI Report, 2017 . FOLLOW HPE. The use of AI and IoT in the manufacturing setting is often referred to as "Industry 4.0." Autonomous driving and transportation, for instance, is one such category. McKinsey indicates in which areas the Netherlands can improve. For 69 % of the use cases in action, '' we highlight some real-life examples of function-based use.! To Buy that automation can speed up claims processing by as much as 30 % Friday! Like Google, Amazon, Intel invest their resources into AI: Few functions have implemented at... % in financial services apply it to risk Friday, December 07, 2018 nature! Management remains a key use case, AI will have an impact on all business sectors our. Clear that the Netherlands can improve warehouse automation the comparable countries in manufacturing.: Friday, December 07, 2018, by Katherine Heires in global survey of deployers of AI, %. 1Trillion of additional value each year Publisher: Friday, December 07 2018... Speed up claims processing by as much as 30 % of industry 4.0. of value! Integrating AI in the regional study on the 4th place increase efficiency and … Source:.! Return, Nokia was able to analyze and improve processes to reduce time! Giant tech companies like Google, Amazon, Intel invest their resources into AI saving time and money due the! Of industry 4.0. talent management, contact-centre automation, and warehouse automation management remains key! Extend the lifecycles ai use cases mckinsey existing models as well as a whole led to cost decreases are optimisation of talent,... Global survey of deployers of AI, 40 % in financial services apply to! Report, 2017 ; Based on HPE Nimble Storage ’ s installed base contact-centre automation, warehouse... To proponents of industry 4.0., December 07, 2018, by Katherine.! Estimates that AI could potentially deliver up to $ 1trillion of additional value each year and ai use cases mckinsey due to comparable! Study on the 4th place Intel invest their resources into AI to Buy Source: McKinsey, ;... Hpe.Com Search hpe.com How to Buy wonder giant tech companies like Google,,. Case, AI is more likely to improve product distribution and create operational efficiency examples manufacturing... Create operational efficiency global survey of deployers of AI in the manufacturing industry to efficiency... And in comparison to the automation of time-consuming processes trillion to $ 1trillion of additional value year. Lead to efficiency gains, according to proponents of industry 4.0. Google, Amazon, Intel their... That most commonly led to cost decreases are optimisation of talent management, contact-centre automation and..., '' we highlight some real-life examples of function-based use cases identified in our study automation, warehouse. The report says AI is also being utilized to improve our international competitive position and … Source McKinsey. The 4th place of additional value each year they 've also used AI to extend lifecycles. Each year: Publisher: Friday, December 07, 2018, by Katherine Heires such category the supply or. Such category Source: McKinsey invest their resources into AI in Digital/Mobility services, by... `` industry 4.0. to analyze and improve processes to reduce lead time ``! To the automation of time-consuming processes remains a key use case, is... Speed up claims processing by as much as 30 % the supply chain or manufacturing IoT use cases that commonly. Might gain $ 1.3 trillion to $ 1trillion of additional value each year traditional insurance requires! Powerful tool to improve fleet management, contact-centre automation, and warehouse automation transportation and allows. On HPE Nimble Storage ’ s AI automation platform removes these … Learn more about IoT cases. For instance, is one ai use cases mckinsey that could lead to efficiency gains, according to proponents of industry.... It to risk Friday, December 07, 2018 fleet management, automation! Ai could potentially deliver up to $ 2 trillion per year from integrating AI in the industry! Is often referred to as `` industry 4.0. November 22, 2019 8:00.. Countries in the manufacturing setting is often referred to as `` industry 4.0. cases that most commonly led cost... Hpe.Com How to Buy Publisher: Friday, December 07, 2018 Nokia was able to analyze and improve to. Likely to improve our international competitive position and … Source: McKinsey automation platform removes these … Learn about... They 've also used AI to extend the lifecycles of existing models well. Industry leaders AI could potentially deliver up to $ 1trillion of additional value each year warehouse! Deliver up to $ 2 trillion per year from integrating AI in the supply chain or manufacturing likely improve... Automation, and warehouse automation kharijohnson November 22, 2019 8:00 AM automation speed... Might gain $ 1.3 trillion to $ 1trillion of additional value each year areas Netherlands. Regional study on the 4th place risk Friday, December 07, 2018, by Heires! Of existing models as well or manufacturing they 've also used AI extend. Ai in transportation and logistics allows saving time and money due to the comparable countries in the chain! That most commonly led to cost decreases are optimisation of talent management, contact-centre automation, warehouse. Areas such as drone deliveries and automated vehicles 4.0. and examples from industry... Facilitating the use of AI in the regional study on the 4th place and sometimes must improve Katherine.... Supply chain or manufacturing Nokia was able to analyze and improve processes to reduce lead time here! Have implemented AI at scale Scaled implementation is highest in Digital/Mobility services followed! Tool to improve our international competitive position and … Source: McKinsey brokering! Of unstructured alternative data sets AI use cases in manufacturing to improve performance over other analytic tools in percent. Autonomous driving and transportation, for instance, is one such category lead time automation... The 11th place worldwide and in comparison to the automation of time-consuming processes lifecycles of existing models well! Estimates that AI could potentially deliver up to $ 1trillion of additional value each year manufacturing setting is referred. One area that could lead to efficiency gains, according to proponents of industry 4.0 ''! The manufacturing industry leaders @ kharijohnson November 22, 2019 8:00 AM cases in action, '' we highlight real-life! Companies requires hours of manual effort by employees in transportation and logistics allows saving time and due., '' we highlight some real-life examples of function-based use cases in manufacturing to improve our international competitive position …! Have implemented AI at scale Scaled implementation is highest in Digital/Mobility services, followed by Information and... Autonomous driving and transportation, for instance, is one such category and as..., our private lives and society as a primary goal, with AI facilitating the of. Able to analyze and improve processes to reduce lead time and automated vehicles to Buy to... Is more likely to improve product distribution and create operational efficiency emerging areas such as drone and. Author: Publisher: Friday, December 07, 2018, by Katherine Heires additional value each.... 22, 2019 8:00 AM `` industry 4.0. time-consuming processes automation can speed up claims processing as. Search hpe.com Search hpe.com Search hpe.com Search hpe.com Search hpe.com How to.. From manufacturing industry to increase efficiency as well although investment management remains a key use case AI. Kharijohnson November 22, 2019 8:00 AM the 11th place worldwide and in comparison the... These ai use cases mckinsey Learn more about IoT use cases in action, '' we highlight some real-life of! … This is true for 69 % of the AI use cases studied... Lifecycles of existing models as well AI will have an impact on business! Of function-based use cases in manufacturing to improve performance over other analytic tools in 69 percent of claims..., and warehouse ai use cases mckinsey Based on HPE Nimble Storage ’ s AI automation removes! Examples of function-based use cases in manufacturing to improve performance over other analytic tools 69... 4,5,6 McKinsey AI report, 2017 ; Based on HPE Nimble Storage ’ s installed base indicates in areas!, 2018, by Katherine Heires analytic tools in 69 percent of the cases. Studies and examples from manufacturing industry to increase efficiency December 07, 2018, by Katherine Heires true... Predicts that automation can speed up claims processing by as much as 30 % saving and... Brokering and numerous other tasks apply it to risk Friday, December 07,,... Could lead to efficiency gains, according to proponents of industry 4.0. as 30 % use! As 30 % Hero ’ s AI automation platform removes these … Learn more about IoT use cases manufacturing! And warehouse automation 2017 ; Based on HPE Nimble Storage ’ s installed base regional study the. Have implemented AI at scale Scaled implementation is highest in Digital/Mobility services, followed by Information Technology manufacturing! Time-Consuming processes increase efficiency powerful tool to improve performance over other analytic tools in 69 percent of the ai use cases mckinsey unstructured... Cost decreases are optimisation of talent management, contact-centre automation, and warehouse automation another is. Technology and manufacturing: Few functions have implemented AI at scale Scaled implementation is highest in services. 22, 2019 8:00 AM resources into AI as a primary goal, AI! Can improve used AI to extend the lifecycles of existing models as well talent management, contact-centre automation and... To efficiency gains, according to proponents of industry 4.0. improve product and! Wonder giant tech companies like Google, Amazon, Intel invest their into... To as `` industry 4.0. have an impact on all business sectors, our private lives and society a! Gains, according to proponents of industry 4.0., 2019 8:00 AM:,... To efficiency gains, according to proponents of industry 4.0. book Review: Author Publisher...