McKinsey Latest Report Reveals Incredible Potential of AI With Expected $340B Boost to Wall Street Profits
McKinsey consultants suggest that banks leveraging generative artificial intelligence tools could improve their earnings by as much as $340 billion annually, resulting in a 9% to 15% increase in operating profits. The findings were published in a report by the McKinsey Global Institute on Tuesday, which indicated that corporate and retail banks stand to benefit the most from the adoption of these tools.
According to McKinsey's research on various industries, tools such as generative artificial intelligence could potentially take over repetitive tasks from most human workers. The initial efficiencies from AI adoption will likely be within companies, but the finance sector should expect a future shift towards customer-facing roles. Sales and marketing, software engineering, and call center positions are among those that are most likely to be affected by automation. As much as 70% of business activities could have automated parts in the future, leaving only a small proportion of jobs untouched.
They're taking the productivity gains to implement code faster, write better content for clients, freeing up time to spend with customers," he said. While he's not yet seen companies using AI to "materially reduce the workforce," over time "the jury is still out" on job losses.
AI Investment Is Booming
Elon Musk's xAI aims to raise $1B from equity investors, filing shows.
Elon Musk's xAI has raised nearly $135 million, as revealed in a filing with the Securities and Exchange Commission on Tuesday. The investors' names have not been disclosed yet. Created earlier this year to compete with other generative AI firms like OpenAI, xAI has launched a chatbot named Grok, which is trained on data from X social network that Musk owns.
According to xAI's website, Grok is known for its "rebellious streak" and can answer questions with wit. In November, Musk stated that equity investors in X (previously called Twitter) would own 25% of xAI, and Premium+ users of X's social network could access Grok by subscribing to the service starting at $16 per month in the US.
Pika raises $55M to redesign video making and editing using AI.
AI video platform Pika has raised $35 million in a Series A funding round, led by Lightspeed Venture Partners, bringing the company's total funding to $55 million. Pika 1.0, a new product upgrade unveiled with the funding round, includes a new AI model that can create and edit videos in various styles like 3D animation, anime, or cinematic.
Since launching in beta on Discord in late April of 2023, Pika has gained over 500,000 users who generate millions of videos each week. The top Pika users spend up to 10 hours a day creating videos, and Pika-generated videos have gone viral on social media.
Syrup raises $17.5M from Accel and Google's AI fund.
Artificial intelligence startup Syrup Tech has raised $17.5 million in a funding round led by Accel, which aims to reduce waste in the fashion retail industry using AI tools for inventory planning and management. The funding round included investors such as Gradient Ventures, $Alphabet-A(GOOGL.US)$'s AI-focused venture fund, and 1984 Ventures.
Syrup Tech is now valued at nearly $100 million after the latest funding, according to a source familiar with the matter. Retail waste is expected to be a significant problem this holiday season following Cyber Monday shopping records.
Retail is still one of the most wasteful industries in the world," said co-founder and Chief Executive Officer James Theuerkauf. "We're able to show our customers in a matter of weeks how much better we are than baseline," he said, to help them avoid issues such as excess inventory or running out of stock.
Source: Bloomberg, The Verge, BusinessWire
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