Corporate Generative AI Adoption Soars In 2024 As Media Buys In

Love it or hate it, generative AI is making powerful inroads into corporate organizations, particularly in media. The latest McKinsey Global Survey on AI shows the technology is rapidly becoming integral to business operations, with usage nearly doubling in 2024.

AI adoption has surged globally, with 72% of organizations now utilizing the technology, up from around 50% in previous years. This expansion is most pronounced in professional services, where AI deployment has seen the most substantial growth.

65% of respondents to McKinsey now employ generative AI regularly, citing benefits in cost reduction and revenue growth. Human Resources and supply chain management are notable areas where gen AI has enabled substantial financial efficiencies.

The survey also explores the personal use of gen AI, noting an increase in its application both at work and in personal settings, particularly among senior executives. Gen AI is predominantly utilized in marketing and sales, product and service development, and IT. For radio and media, this suggests a growing importance in areas such as personalized advertising, content curation, and operational efficiencies.

Despite the benefits, the adoption of gen AI comes with challenges, notably the risk of inaccuracy and the management of data security. These issues are crucial for media companies to address, given the potential implications for content credibility and consumer trust.

Companies are beginning to allocate significant portions of their digital budgets to generative AI. Seven percent of media companies surveyed said they spend more than 20% of their digital budget on generative AI tech, while the next seventeen percent of respondents spend anywhere from 6-20%. However, analytical AI still attracts higher budget allocations at this point.

Media firms are the third largest investing sector, behind Technology and Energy

Media companies are among those most actively customizing tools or developing proprietary models, with 54% of media companies creating their own specialized generative AI as opposed to an off-the-shelf option. This trend is driven not only by the need to stand out in a competitive market, but in concerns about proprietary processes and security.

Respondents anticipate further increases in AI investment over the next three years, suggesting a continuing trend towards integrating advanced technologies in business strategies. The comprehensive survey underscores the evolving role of AI in shaping operational efficiencies and transforming industry practices.

Finally, McKinsey found that organizations with set guidelines and best practices are seeing the largest returns from generative AI.

The full insight is available on McKinsey’s website.