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Good morning.
Generative AI continues to be top of mind. And as for OpenAI, what a difference a year makes.
The tech company announced ChatGPT in November 2022. Fast forward to last week, Sam Altman, the cofounder of ChatGPT parent OpenAI, was ousted as CEO as the board said he “was not consistently candid.” Satya Nadella, chairman and CEO of Microsoft, announced on Monday that Altman would be joining Microsoft. OpenAI appointed two different interim CEOs in less than a week. A petition was signed by over 700 OpenAI staff members calling for board members to resign and reinstate Altman. This morning, OpenAI announced they've reached an agreement for Altman to return to the company as CEO with a new initial board. (You can read Fortune’s complete coverage here).
'There’s a little bit of FOMO'
But even as OpenAI's saga continues, AI is accelerating rapidly. In fact, McKinsey & Co. research says generative AI could add $4 trillion to global corporate profits in coming decades. The abilities and potential of generative AI in particular could present significant opportunities for value creation by CEOs and CFOs.
However, when it comes to what, where, and why to spend dollars on AI, the messages and directives are dizzying. It’s no wonder CEOs and CFOs are caught between FOMO (fear of missing out) and FOFU (fear of failing utterly). In the early days of a technological breakthrough, it’s easy to spend a lot of money in the wrong places.
So how are companies coming up with generative AI strategies? For my latest Fortune article, I spoke to experts at Accenture, McKinsey, and Boston Consulting Group about what clients are asking for.
“Over the last, I’d say, eight months, in particular with generative AI, some people just want to go do AI for AI sake,” said Alex Singla, a senior partner at McKinsey and co-leader of QuantumBlack, the firm's AI arm.
Singla said his team first looks across an institution and asks: “What are the core business problems you’re trying to solve?” And from there, he said, they assess whether or not AI can play a role.
Regarding investing in AI, some clients are looking for “the why” and “a lot are trying to get to the ‘when’—when should I dive in?” said Paul Daugherty, chief technology and innovation officer at Accenture. And for other clients, there’s a little bit of FOMO—’Am I missing out? Tell me what the others are doing.’”
Starting with the business case that's driving the overall strategy is important, Daugherty explained. That includes taking into account the impact on the value chain of the industry, the likely use cases to start with, the types of models needed, and how processes should change.