Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. Recent breakthroughs in the field have the potential to drastically change the way we approach content creation.

Generative AI like LLMs have been touted as a boon to collective productivity. But the authors argue that leaning into the hype too much could be a mistake. Assessments of productivity typically focus on the task level and how individuals might use and benefit from LLMs. Using such findings to draw broad conclusions about firm-level performance could prove costly. The authors argue that leaders need to understand two core problems of LLMs before adopting them company-wide: 1) their persistent ability to produce convincing falsities and 2) the likely long-term negative effects of using LLMs on employees and internal processes. The authors outline a long-term perspective on LLMs, as well as what kinds of tasks LLMs can perform reliably.

If 2023 was generative AI’s breakout year, 2024 is shaping up to be the year for generative AI to prove its value. Which industries are poised to benefit most from the rapidly developing technology? This collection of insights from McKinsey’s Rodney Zemmel, Matt Fitzpatrick, Delphine Nain Zurkiya, and many others, dives into perspectives across industries, including energy and materials, real estate, life sciences, high tech, and banking. For more on how organizations can most effectively and responsibly use generative AI to create business value, check out QuantumBlack, McKinsey’s AI arm.

Gartner recommends that when developing GenAI-enabled products and services, you:

• Create a plan to deploy and test
• Focus first on the most prevalent use cases — those that are already delivering real value to users
• Draw an investment roadmap that prioritizes opportunities
• Strive to create a competitive edge
• Hold off on long-range future GenAI technology investments

The generative AI payoff may only come when companies do deeper organizational surgery on their business.

The “GenAI Prism” is the single best representation of the generative AI universe I’ve seen. Every tool for any circumstance, mapped to an actual process

Announcing Stable Diffusion 3 in early preview, our most capable text-to-image model with greatly improved performance in multi-subject prompts, image quality, and spelling abilities.