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Gen AI: The devil is in the data

The CEO Shortlist

Four new insights ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
The CEO Shortlist
The CEO Shortlist

Curated by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Heavy hangs the head and all that. We understand the challenges of the top job, and we’re committed to helping CEOs—both present and future—do the best jobs they can. Twice monthly, we offer four articles and reports that are must-reads for people across the workforce—particularly C-level execs. In this edition, we look at seven things you can do today to get to net zero, how to put data to work in scaling generative AI, and more. We hope you enjoy the read.

—Liz and Homayoun
An image linking to the web page “Full throttle on net zero: Creating value in the face of uncertainty” on McKinsey.com.

Just do it. CEOs are waiting (and waiting) for the perfect energy transition playbook. But certainty is an unaffordable luxury. Our experts’ recommendation is to just get on with it: leaders know enough now to make six no-regrets moves to create value in the net-zero transition.

Ah-ooo-ga: What’s that sound coming through the fog? Why, it’s Full throttle on net zero: Creating value in the face of uncertainty, by Laura Corb, Anna Granskog, Tomas Nauclér, and Daniel Pacthod.
An image linking to the web page “Unlocking operational evolution: The zero-basing philosophy” on McKinsey.com.

More than zero. Everybody thinks zero-based budgeting is just a euphemism for radical cost cuts. But there’s much more to it than that. Done right, zero-basing can give leaders insights into costs, yes, but also into growth and capital allocation.

Dig deeper than the bottom line with Unlocking operational evolution: The zero-basing philosophy, by Denis Fomin, Steve Frazier, and Carey Mignerey. 
An image linking to the web page “The data dividend: Fueling generative AI” on McKinsey.com.

Data is gold. We’ve been singing this song for years. But the message is all the more urgent as generative AI tools—reliant on easily accessible, organized data—take over the business and tech conversation. The problem? Seventy-two percent of leading organizations cite data management as one of the main roadblocks in scaling AI.

Help is on the way: check out the seven actions data leaders can take in The data dividend: Fueling generative AI, a new article by Joe Caserta, Holger Harreis, Kayvaun Rowshankish, Nikhil Srinidhi, and Asin Tavakoli.
An image linking to the web page “The organization of the future: Enabled by gen AI, driven by people” on McKinsey.com.

The gen AI glass is half full—or even three-quarters. You might have read one or two (or 15) think pieces about the vast opportunity for early adopters of generative AI. But not everyone sees the future as rosy. Many see gen AI as a harbinger, not of exciting growth but of job replacement and loss. It’s up to senior leaders to build a compelling narrative for the use of gen AI, with concrete examples of how the tools can enhance the employee experience.

Calm your employees’ anxieties with actionable insights from The organization of the future: Enabled by gen AI, driven by people, by Sandra Durth, Bryan Hancock, Dana Maor, and Alex Sukharevsky.

We hope you find our new focus on CEOs inspiring and helpful. See you in two weeks with four more McKinsey ideas for the CEO and others in the C-suite.

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by "McKinsey CEO Shortlist" <publishing@email.mckinsey.com> - 02:08 - 6 Oct 2023