Enterprise technology’s next chapter: Four gen AI shifts that will reshape business technology (with abstract)
| Enterprise technology’s next chapter: Four gen AI shifts that will reshape business technology (with abstract) | |
|---|---|
| Published By | Articles by McKinsey |
| Publish Date | Dec 02, 2024 |
| Authors | James Kaplan, Mark Gu, Megha Sinha |
| Topics | Strategy, AI |
| Statistics | |
| Article Size | words |
| Diagrams | Yes |
| Downloadable Version | Yes |
| Reviewers | |
| Page Owner | Nikolay Sidelnikov |
| Summary Author | Nikolay Sidelnikov |
Abstract
The article Enterprise technology’s next chapter: Four gen AI shifts that will reshape business technology by McKinsey is about the long-term impact of generative AI (gen AI) on enterprise technology.
It discusses how companies tend to focus on short-term, immediate applications of gen AI, such as efficiency and productivity, while overlooking its broader, more transformative potential. The article highlights four emerging shifts that gen AI will likely bring to enterprise technology, including changes in work patterns, architectural foundations, organizational structures, and cost models. It also addresses the challenges and risks associated with gen AI, such as security, privacy, and explainability, and how organizations are beginning to prepare for these changes.
Covers the following topics:
- From tools that support teams to AI ‘artisan’ and ‘factory’ teams.
- From application architectures dominating the landscape to predominantly AI agent and data architectures.
- From a ‘pyramid’ or ‘diamond’ organizational structure to a flatter one, with new workforce development considerations.
- From application- to infrastructure-based cost structures, with increased focus on compute spend.
The article concludes that full adoption of generative AI in enterprise technology will take about a decade. Success requires more than just tools, focusing on design, talent, cost, and risk management. Starting with a few domains will help build capabilities for scaling. Despite challenges, the long-term impact will likely be greater than anticipated.
Full text: Enterprise technology’s next chapter: Four gen AI shifts that will reshape business technology
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