Dec 03 2024 26 mins 4
Jonathan Shulman, Senior Partner at McKinsey & Company, highlights the transformative potential of AI in the software industry and the evolutions needed to capture emerging market opportunities.
Topics Include:
- AI's transformative potential in the software industry.
- Why AI is a massive business opportunity.
- Software industry evolution: Mainframe to Cloud SaaS eras.
- Potential entrance into a new AI-driven era.
- AI spend forecast: $15B to $200B by 2026.
- Most AI spend repurposed from existing IT budgets.
- Legacy software spend likely shifting towards AI.
- Importance of targeting specific, high-impact AI use cases.
- Key areas disrupted: sales, marketing, software engineering.
- AI's adoption rates vary by industry and function.
- Four waves of AI: predictive to agent-based.
- Most companies are still in early AI stages.
- Prioritize building agentic, end-to-end AI solutions.
- Winning companies invest disproportionately in AI innovation.
- Position offerings to tap into AI-specific budgets.
- Deliver complete workflows, not isolated point solutions.
- Generative AI accelerates development and iteration cycles.
- Scaling AI pilots remains a major industry challenge.
- Tool fragmentation undermines productivity and innovation.
- Change management critical for successful AI integration.
- Rethinking team roles and processes for AI deployment.
- Consumption-based pricing models gaining industry traction.
- Shift from perpetual to subscription to consumption models.
- Balancing value-driven and cost-efficient consumption pricing.
- AI market poised to redefine IT and business landscapes.
Participants:
- Jonathan Shulman – Senior Partner, McKinsey and Company
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