ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Even as organizations worldwide adapt to generative AI technologies, researchers and scientists are pursuing new AI ventures that may bring the technology closer to human ways of thinking and reasoning. For example, “emotion AI,” also known as affective computing, enables machines to understand and respond to human emotions, voices, and facial expressions, and the day may not be far off when machines work closely enough with humans to solve the pressing issues that affect business and society. This week, we explore some emerging trends in AI for leaders to consider.

AN IDEA

Build up cognitive steam with AI

LinkedIn cofounder Reid Hoffman believes that AI agents can be trained to demonstrate emotional intelligence (EQ) as well as factual knowledge. Now a partner at venture capital firm Greylock Partners, Hoffman recently cofounded Inflection AI, whose first product is described as a supportive, empathetic, and conversational AI. Describing generative AI as the “steam engine of the mind” and the “cognitive industrial revolution,” Hoffman discusses the technology’s potential with McKinsey senior partner Lareina Yee. “The steam engine gave us a tremendous number of physical superpowers in manufacturing, transport, and construction,” he says. “The same thing is happening now with cognitive capabilities in anything that we do that uses language. What you should take as a certainty when it comes to work over the next five-plus years is that AI is going to . . . amplify any capability that includes language—or the cognitive functioning of language.”

A BIG NUMBER

72

That’s the percentage of organizations that adopted AI in 2023—a leap from about 50 percent over the previous six years, according to the latest McKinsey Global Survey on AI. Companies are also using AI in more business functions than before: half of respondents have adopted it in two or more areas, up from less than a third in 2023. But organizations are also more aware of its risks, especially those posed by generative AI. This year, a higher number of respondents rank inaccuracy and intellectual property infringement as the top threats, while cybersecurity and privacy continue to be major concerns.

A QUOTE

“AGI tools could feature cognitive and emotional abilities (like empathy) indistinguishable from those of a human.”

That’s McKinsey experts in a new McKinsey Explainer on artificial general intelligence (AGI), a breakthrough that could enable AI tools to replicate humanlike cognitive abilities such as creativity, reasoning, and visual and audio perception. AGI may not emerge for decades, “but when it does arrive—and it likely will at some point—it’s going to be a very big deal for every aspect of our lives, businesses, and societies,” note the McKinsey researchers. As a leader, you can start preparing for it right now: key actions to consider include staying informed, investing in AI and related technologies, and building a strong talent foundation.

A SPOTLIGHT INTERVIEW

How can AI benefit humanity rather than causing harm to it? That question should be at the core of future AI development, says pioneering computer scientist Stuart Russell in a discussion with McKinsey. Rather than looking to build “intelligent” systems, business and society could be better off focusing on AI models that work with humans to achieve a beneficial goal. “Instead of writing algorithms that find optimal solutions for a fixed objective, we can write algorithms that solve this problem of functioning as sort of one-half of a combined system with humans,” says Russell. “The new model would be more like the perfect butler, who understands what you want, what you might not want, and knows when to ask and when to defer to what your preferences might be. I think that’s, in a nutshell, where we want to go.”

— Edited by Rama Ramaswami, senior editor, New York

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