The rise of artificial intelligence in business transformation

Artificial Intelligence (AI) is rapidly making waves across various industries as businesses increasingly adopt advanced automation to enhance operational efficiency, streamline processes, and drive growth. Notable examples come from prominent companies like McKinsey & Company and Summize, which have integrated AI into their core functions to address contemporary challenges in business management and legal technology, respectively.

Jacky Wright, Chief Technology and Platform Officer at McKinsey, has been at the forefront of the consultancy’s technological transformation. Her journey began in the banking sector, where she experienced firsthand the capabilities of early technological solutions such as Lotus 1-2-3. Today, under her leadership, McKinsey has launched “Lilli,” an AI assistant that employs both large and small language models. This tool is designed to automate tedious tasks, such as data collation, allowing McKinsey consultants to engage with the firm’s vast databases using natural language queries. In an interview with The Stack, Wright elaborated on Lilli’s architecture, stating, “We’ve processed all of the firm’s knowledge into vector stores by using OpenAI embedding models… we synthesize the final answer and include citations back to the underlying source documents.”

This move to incorporate AI has coincided with a broader transition to a cloud-based infrastructure at McKinsey, having now migrated around 400 to 500 applications to the cloud while closing down their last data centre by 2024. Wright acknowledged some challenges associated with this transformation, particularly in educating teams about optimising the technology’s economic benefits. As part of a continuous journey, Wright emphasised that embracing AI is “a journey of learning by doing,” and noted significant improvements in engagement manager efficiencies through the use of Lilli.

In contrast, the legal technology company Summize, co-founded by Tom Dunlop, is also harnessing AI to resolve inefficiencies in contract lifecycle management (CLM). Dunlop shared his inspiration for the company, stating how his experiences as an in-house lawyer led him to create a tool that could quickly summarise contracts and bridge the communication gap between legal teams and other business units. “It was painstaking… I knew there had to be a better way,” he recalled.

The company has implemented a unique approach known as the “Hero Framework,” designed to minimise legal bottlenecks while enhancing productivity through actionable analytics. During a conversation with LexBlog, Dunlop highlighted the importance of embedding Summize’s tools within widely used platforms like Microsoft Word, arguing that it allows users to collaborate more effectively within their existing workflows. “Why ask lawyers to leave Word when they already love working there?” asked Laura Proctor, Chief Marketing Officer at Summize, signifying their commitment to user-centric design.

Moreover, Summize is strategically navigating the differences in the US and UK markets. Proctor noted that while US buyers often come with prior experiences in CLM, UK customers may be approaching such technology for the first time. This impacts their marketing and implementation strategies, as they focus on delivering rapid value and addressing specific pain points. Looking to the future, Dunlop indicated a vision where AI could radically shift the legal landscape, suggesting an evolution from manual labour to a more automated approach in legal processes. “If we can monetise legal knowledge rather than time, we could 10x the market,” he stated.

As both McKinsey and Summize demonstrate, the application of AI is increasingly recognised as a key driver of organisational efficiency and competitiveness in today’s fast-evolving market. The evolution of these technologies not only highlights the ongoing digital transformation reshaping traditional business operations, but also encapsulates the essential demand for creative solutions in sector-specific scenarios. Each company’s commitment to integrating automation signifies a broader trend wherein AI is not just an ancillary tool but a pivotal component in reimagining business capabilities and operational dynamics across industries.

Source: Noah Wire Services