We define a “use case” as a targeted application of generative AI to a specific business challenge, resulting in one or more measurable outcomes.

For most companies, having employees work outside the office will require reinventing many processes and policies. All of us are at the beginning of a journey to understand generative AI’s power, reach, and capabilities. The McKinsey Global Institute began analyzing the impact of technological automation of work activities and modeling scenarios of adoption in 2017.Pharma companies that have used this approach have reported high success rates in clinical trials for the top five indications recommended by a foundation model for a tested drug.

Once the outliers are identified, the plan of action can be created, which will involve making concrete changes to the chain of hierarchy, the flow of communication, and reporting relationships. Hard elements are easily identified and influenced by management, while soft elements are fuzzier, more intangible, and influenced by corporate culture. Once the opportunities are defined, companies need transparency into what people are working on and a governance process that constantly assesses not only the expected value, timing, and risk of the initiatives in the portfolio but also its overall composition.

It can also optimize designs for manufacturing, which can lead to cost reductions in logistics and production.

It helps to combine high-level aspirations with estimates of the value that innovation should generate to meet financial-growth objectives. It is also used to evaluate performance following a merger or other restructuring to identify areas that need improvement. A shift to 15 to 20 percent of workers spending more time at home and less in the office could have profound impacts on urban economies. It remains to be seen whether the shift to remote work slows that trend, or whether the most vibrant cities remain magnets for such people.

For example, much of the value of new vehicles comes from digital features such as adaptive cruise control, parking assistance, and IoT connectivity. The remaining 17 percent of the workforce could work remotely partially, between one and three days per week (Exhibit 4).