The article discusses the value creation opportunities in the Generative AI field, emphasizing that applications built on fine-tuned models offer the greatest potential for differentiation and competitive advantage, with significant implications for various business functions and industries.
Which type of generative AI applications is considered to be the most attractive part of the value chain?
A) Applications built on unmodified foundation models
B) Applications that leverage fine-tuned foundation models
C) Applications that use proprietary data from feedback loops
D) Applications that use generative AI for customer service
In the early days of generative AI, which business functions are most ripe for the first wave of applications?
A) Marketing and sales, and product development
B) Information technology, customer service, and production
C) Information technology, marketing and sales, customer service, and product development
D) Only information technology
Which industries are expected to experience outsized operational efficiencies from generative AI applications in the near term?
A) Banking, consumer, telecommunications, life sciences, and technology
B) Education, healthcare, and transport
C) Agriculture, energy, and real estate
D) Hospitality, leisure, and retail
The Bottom Line:
The article emphasizes that teams in marketing and sales can use generative AI applications to create content for customer outreach, and it is expected that 30 percent of all outbound marketing messages will be developed with the assistance of generative AI systems within two years. This highlights the potential of generative AI in transforming marketing strategies and enhancing customer engagement.
Answers to the Multiple Choice Questions:
B) Applications that leverage fine-tuned foundation models
C) Information technology, marketing and sales, customer service, and product development
A) Banking, consumer, telecommunications, life sciences, and technology
Article Name: Exploring opportunities in the generative AI value chain
https://www.mckinsey.com/capabilities/quantumblack/our-insights/exploring-opportunities-in-the-generative-ai-value-chain