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The Rise of Corporate AI: Building the Foundation for Innovation

Rewiring the Bottom-Line Impact of AI

Overall, AI usage in large corporations is gaining momentum. According to a global survey from McKinsey & Company, “The state of AI: How organizations are rewiring to capture value,” more than three-quarters of respondents now say that their organizations use AI in at least one business function. McKinsey notes that companies with at least $500 million in annual revenue are changing more quickly than smaller organizations. These leading companies are deploying generative AI, redesigning workflows, putting senior leaders into roles to oversee AI governance and hiring for new AI related roles.

Other survey results from McKinsey include:

  • 28% of respondents whose organizations use AI report that their CEO is responsible for overseeing AI governance, though the share is smaller at larger organizations with $500 million or more in annual revenues, and 17% say AI governance is overseen by their board of directors.
  • 21% of respondents reporting gen AI use by their organizations say their organizations have fundamentally redesigned at least some workflows.
  • The survey findings also shed light on how organizations are structuring their AI deployment efforts. Some essential elements for deploying AI tend to be fully or partially centralized. For risk and compliance, as well as data governance, organizations often use a fully centralized model such as a center of excellence. For tech talent and adoption of AI solutions, on the other hand, respondents most often report using a hybrid or partially centralized model.
  • 27% of respondents whose organizations use gen AI say that employees review all content created by gen AI before it is used. A similar share says that 20% or less of gen-AI-produced content is checked before use.
  • Many organizations are ramping up their efforts to mitigate gen-AI-related risks. Respondents are more likely than in early 2024 to say their organizations are actively managing risks related to inaccuracy, cybersecurity, and intellectual property infringement.
  • Only 1% of company executives describe their gen AI rollouts as “mature.” Even though these remain early days for deployment, we are beginning to see the impact when these practices are employed to capture value.
  • In the latest survey, 78% of respondents say their organizations use AI in at least one business function, up from 72% in early 2024 and 55% a year earlier.

Uncovering Organizational AI

During FEI 2025, Rick Robinson, VP, AgeTech Collaborative, VP Product Innovation at AARP, along with Shahid Azim, CEO, Managing Partner, Co-Founder at C10 Labs, and Sanji Fernando, Operating Partner, Data & Artificial Intelligence at Frazier Healthcare Partners, will hold a keynote, “No-Hype AI Impact on Organizational Efficiency, Value, Teams & The Bottom-Line.”

There can’t be more noise around organizational use of AI. It will surpass expectations, it will fall short of promises, we don’t even know what it will do!!!! Each of those distinct perspectives are simultaneously being voiced by smart people. With thought leaders that have already proven success, we stop the madness with a no-hype, in-the-moment conversation on what is real and what you can do now for your organization. As a community, we then collectively uncover use cases and case studies showcasing the real-time “AI Impact on Organizational Efficiency, Value, Teams & The Bottom-Line.”

FEI 2025 will be held May 19-21, 2025, Omni Boston Hotel at the Seaport Boston. Click here for more registration information.

Managing the Implementation of Generative AI

It seems pretty clear, according to comprehensive surveys such as the one from McKinsey, that AI use will continue to climb at both large and small organizations. Experimentation, testing and deployment will continue to ramp up, and the scale will depend on each firm’s capabilities, and whether it’s a centralized, decentralized or hybrid model. New hires, new skills and new training will be needed for this AI-enabled workforce.

As McKinsey reminds us, despite the hype, it’s still the early days of this movement. McKinsey concludes, “Use continues to surge, but from a value capture standpoint, these are still early days—few are experiencing meaningful bottom-line impacts. Larger companies are doing more organizationally to help realize that value. They invest more heavily in AI talent. They mitigate more gen-AI-related risks. We have seen organizations move since early last year, and the technology also continues to evolve, with a view toward agentic AI as the next frontier for AI innovation.”

Video courtesy of Bernard Marr

Contributor

  • Matthew Kramer is the Digital Editor for All Things Insights & All Things Innovation. He has over 20 years of experience working in publishing and media companies, on a variety of business-to-business publications, websites and trade shows.

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