McKinsey & Google Using Gen AI to Help Increase Value Chains

McKinsey & Company and Google Cloud are helping companies tap into US$4tn of business value by improving their value chain with the help of Gen AI

The duo are working with their clients to catalyse large-scale innovative change with Gemini AI for Google Cloud. The alliance plays into McKinsey's open ecosystem of leading AI innovators to help them adopt and scale by providing clients with expertise and solutions across all parts of the technology stack.

McKinsey has already helped leading companies across a spectrum of industries and technical domains transform how they operate with Google Cloud’s trusted infrastructure and technology, including with Gen AI.

Projects have helped clients become more productive, streamline complex processes, and optimise value from their AI investments.

For example, McKinsey and Google Cloud built a Gen AI-powered search platform that significantly reduced maintenance times for a process manufacturer, and the companies developed a virtual agent that delivers highly personalised, instantaneous service to banking customers to resolve inquiries faster and more effectively.

McKinsey & Company

How AI is transforming business

Google Cloud offers many of the industry’s leading cloud and AI technologies, and AI has been part of Google’s DNA since its inception. Combining the company’s exceptional product and engineering talent with its foundation models and AI frameworks provides the world’s largest enterprises with the tools and infrastructure they need to transform their businesses and improve operations at global scale.

McKinsey brings with it an array of talent, including its Gen AI arm, QuantumBlack. With 7,000 technologists, designers, and product managers serving clients in more than 50 countries. Many are Google Cloud-certified, with an approximately 160% increase in Google Cloud-certified individuals from last year. Through the work with more than 200 clients, it has quantified the core elements required for rewiring organisations and creating impact through AI-based transformation.

Bob Sternfels, McKinsey's global managing partner, said: “When Google Cloud technology is combined with McKinsey’s industry expertise, technology delivery experience, and capability building, it creates a powerful partnership able to help businesses shape, mobilise and orchestrate large-scale, tech-enabled transformations.

Bob Sternfels, Global Managing Partner at McKinsey & Company (Credit: LinkedIn)

Thomas Kurian, CEO of Google Cloud, added: “Gen AI can transform organisations by increasing workforce productivity, accelerating developer velocity, and streamlining business operations. With this expanded partnership, clients will now be better positioned to successfully scope and optimise their generative AI projects.”

Thomas Kurian, CEO of Google Cloud (Credit: LinkedIn)

How AI is already unlocking new value

McKinsey estimates there is more than US$4 trillion in value to be unlocked by Gen AI and cloud technologies. Through the alliance with Google Cloud, it is working with clients to capture this value in four ways: through cloud-enabled business transformations, tech modernisation programs, Gen-AI-enabled solutions, and industry-specific use cases.

In just a matter of weeks, QuantumBlack data scientists partnered with Google Cloud’s generative AI solutions team to build two Gen AI chatbots for Formula E racing. With Vertex AI and Google Cloud’s large language models, they produced real- time car performance data, helping the driving team set a world record for indoor land speed, and created the ‘voice of the car’, allowing fans to experience racing as never before.

The duo have also jointly helped a process manufacturer pilot two high-impact Gen AI use cases: an AI-enabled search platform for operations and a corporate research tool. Experts and engineers from QuantumBlack worked with Google Cloud architects and engineers to design and build these use cases, improving productivity and reducing costs.

Adrian Booth, leader of Build by McKinsey and the Google Cloud alliance (Credit: LinkedIn)

Adrian Booth, leader of Build by McKinsey and the Google Cloud alliance, said: “In all of our alliances, we look for companies who share the same commitment to creating impact for clients that we do. This one is no exception.

“The partnership is a testament to our belief in this technology and our dedication to leading the charge in unlocking tangible value for our clients. This is not just an alliance, it's a journey towards redefining the future of business, innovation, and success.”

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