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The data dividend: Fueling generative AI

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The data dividend: Fueling generative AI

Data leaders should consider seven actions to enable companies to scale their generative AI ambitions.

McKinsey,

5 min read
5 take-aways
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What's inside?

Companies need to prepare their data to reap generative AI’s massive benefits.

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8

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Recommendation

Today’s chief data officers (CDOs) face a serious and immediate challenge. Generative AI may create economic benefits that amount to as much as $4.4 trillion. But to optimize generative AI’s value in its various applications, a company’s data needs to be high quality and grounded. Over half of major companies name data management as one of their chief obstacles to scaling up their use of generative AI. This McKinsey report provides actionable guidelines that will help CDOs enact the changes necessary for their company to maximize generative AI’s benefits.

Summary

Chief data officers (CDOs) need to know their company’s value source and how data can support it.

Many chief data officers are feeling pushed to take action on generative AI. Value must remain paramount, however. CDOs should steer their company’s approach to AI and carefully assess the data resources the firm requires in order to use generative AI to deliver the greatest value to the business.

In particular, CDOs must ensure the availability of quality data, determine how data management needs to evolve to optimize desirable results and make substantial investments in issues like creating a cutting-edge “labeling and tagging strategy.”

Design your data architecture to support many applications.

Generative AI is notable for its capacity to work with “unstructured data” in various forms. Traditionally, data-driven organizations work exclusively with “structured data.” A company must...

About the Authors

Joe Caserta is a partner in McKinsey’s New York office, where Kayvaun Rowshankish is a senior partner. Holger Harreis is a senior partner in the Düsseldorf office, where Asin Tavakoli is a partner. Nikhil Srinidhi is an associate partner in the Berlin office.

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