There’s been a lot of hype around the impact artificial intelligence will have on different industries, especially marketing. Luckily, McKinsey’s quarterly Five Fifty study, “Real-World AI,” cut through the hype and put some actual numbers (big numbers!) behind these claims.
According to McKinsey, AI’s application to real-world business problems extends across nearly every sector of the economy, but the biggest impact could arise in two particular business functions: marketing and sales, and supply-chain management and manufacturing.
McKinsey predicts there is $2.6 trillion (yes, trillion) of potential value to be unlocked by AI applications in the marketing and sales sectors. Supply-chain management and manufacturing follow right behind at $2 trillion.
Their recent analysis of more than 400 use cases across 19 industries and nine business functions points out the huge opportunity for businesses to leverage AI for personalization. Combining past transaction data, customer demographics and social media monitoring, recommending a “next product to buy” like Amazon and Netflix could lead to a twofold increase in the rate of sales conversions.
Read McKinsey’s full report, “Notes from the AI frontier: Applications and value of deep learning.”