Good morning.
ChatGPT has the fastest growing customer base of any technology in history, gaining 100 million users in just two months. And all signs suggest that business adoption will be equally swift. The new technology is top of mind for every CEO I talk with these days.
But while all are impressed by the power of these new tools, many are still perplexed about where to start. Unlike previous generations of A.I., which focused on relatively narrow tasks—predicting customer churn, for instance, or targeting supply chain issues—generative A.I. models can tackle a wide variety of creative tasks. And while the amazing breadth of these models makes them impressive, it also makes them daunting. Our recent polling shows the vast majority of Fortune 500 CEOs are still at the experimental stage, or planning their first step.
Accenture CTO Paul Daugherty has a new piece for Fortune that may help light the path. He highlights five core ways that people can work with generative A.I. to create value. McKinsey also has a paper out this morning that is a primer for businesses exploring generative A.I., and provides helpful use cases. McKinsey’s Lareina Yee, one of the authors, told me their analysis “of the apparel, fashion and luxury sectors found that GenAI has the potential to add $150 billion in operating profits.” Hard to overlook.
Both Daugherty’s article and the McKinsey paper highlight writing software code as one of the areas where generative A.I. can make a huge difference—increasing productivity by 50%, McKinsey says. Which raises another interesting issue: For the last decade, the surest route to a good job was to learn to write code. But now that machines do that, what’s the new formula for job security? Microsoft provided some guidance this week in its Work Trend Index Annual Report. The skills needed to survive are those that will help humans manage the machines: analytical judgement, ability to work flexibly, emotional intelligence, creative evaluation and curiosity.
To sum it up: generative A.I. is likely to have the most profound impact on the business world of any technology since the PC. And the best way to remain relevant will be to learn how to use it smartly. What’s coming, says Daugherty, is a reinvention “of the way work is done, dramatically amplifying what people can achieve.” And the companies and people that get there fastest “will gain a big leg up on less innovative competitors.”
More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
