Generative AI could add $2.6 to $4.4 trillion annually to the global economy, says a McKinsey Global Institute report. Four key use cases, including customer operations, marketing and sales, software engineering, and product R&D, could account for 75% of this value:
- Customer Operations: Generative AI can automate natural language interactions with customers. It’s estimated that half of customer contacts made by banking, telecommunications, and utility companies in North America are already handled by machines. Generative AI could further reduce human-serviced contacts by up to 50%.
- Marketing and Sales: Generative AI can quickly create personalized messages tailored to individual customer interests. It can also generate first drafts of brand advertising, slogans, social media posts, and product descriptions.
- Software Engineering: Generative AI can generate initial code drafts, correct and refactor code, and accelerate the coding process. It could replace 20% to 45% of current spending on this function.
- Product R&D: Life sciences and chemical industries have begun using generative AI foundation models for “generative design”. This involves generating candidate molecules and accelerating the development of new drugs and materials.
The report concludes that the scale and scope of the workforce transitions due to generative AI are considerable, with about a quarter to a third of work activities potentially changing in the coming decade.