September 26, 2023
Generative AI is a powerful new technology that has the potential to revolutionize many industries. A new study by BCG however discovered that generative AI can also be a double-edged sword, boosting performance in some areas and destroying value in others.
The study, which involved over 750 BCG consultants, found that generative AI can be particularly effective for creative tasks, such as product ideation and content creation. In fact, participants who used generative AI for these tasks improved their performance by an average of 40%.
The study also found that generative AI can be less effective for tasks that require critical thinking and problem-solving skills. In particular, participants who used generative AI for business problem solving tasks performed 23% worse than those who did not use the technology.
In addition, the study also found that generative AI can lead to a reduction in group diversity of thought. This is because the technology tends to produce relatively uniform output, which can discourage people from sharing their own unique ideas.
This shift in technology adoption was the focal point of a recent Fortune event held in collaboration with BCG, where prominent CEOs came together to dissect the implications. It was there Sharon Marcil, BCG North America MD, stressed the importance of Gen AI adoption with strong leadership and risk protection. While Tom Wilson, Allstate CEO, emphasizes the shift to tech-driven strategies, fostering internal capabilities, and forming valuable external partnerships.
Also, Arvind Krishna, IBM CEO, raises concerns about intellectual property issues in GenAI, especially in code-intensive industries, urging caution. Kim Keck, CEO of Blue Cross Blue Shield, focuses on risk mitigation and innovation through GenAI experimentation.
Barak Eilam, NICE CEO, warns against expecting immediate savings with Generative AI, emphasizing the need for time, effort, and expertise. And Ravi Kumar, Cognizant CEO, highlights how GenAI empowers end users, potentially creating upward social mobility in employment.
The sources for this piece include an article in BCG.
