The business world is still coming to grips with the seismic potential of generative AI (gen AI). According to the McKinsey Global Institute, the technology could contribute $2.6 trillion to $4.4 trillion annually to the global economy. In addition, 50 percent of work activities could be automated from 2030 to 2060, a trend that gen AI is poised to accelerate. However, one does not need to look to the future…
With the need to tackle global challenges such as climate change, biodiversity loss, waste, and pollution, circularity is becoming increasingly important for businesses and organisations around the world. France has set the standard when it comes to legislation shaping the use of refurbished devices, and Lenovo is also rolling out circular solutions such as Certified Refurbished in other countries around Europe. Circularity is also important for individuals, however, and consumer…
This commentary originally appeared in Fortune. As presidential campaigns race to the close, the electorate moves past gauzy themes and adversarial finger-pointing, which tell us little about candidates’ plans, to examine differences in goals and policies. Previously, we analyzed the paradoxical positions of Donald Trump’s pro-business, laissez-faire, global burden-sharing presumptions—and the realities of the contrasting MAGA-Marxist pronouncements they conceal: record fiscal deficits, interventionist and politically motivated attacks on companies, threats…
Frontiers The intimate surveillance afforded by biometric technologies requires managers to consider negative impacts on privacy and human dignity. Andrew Park, Jayson Killoran, and Jan Kietzmann August 29, 2024 Reading Time: 9 min Topics Frontiers An MIT SMR initiative exploring how technology is reshaping the practice of management. More in this series Gary Waters/Ikon Images In April, Colorado became the first state to mandate that companies protect the privacy of…
The world has been and continues to be driven by three famous elements of Realism; “self-help, statism, and survival,” writes Major General (Retd) Raza Muhammad, President of the Islamabad Policy Research Institute. Historical Background For centuries, military alliances have remained a fundamental aspect of statecraft and international relations. The rise of collective security in the face of the larger powers in ancient Greece formed the bedrock of military alliances and…
David Senior Every business experiences a life cycle, transitioning from a startup through growth and maturity, and eventually decline. While no leader wants to see their business in decline, the best response to aging as a business is to accept that it’s happening and run the company to reflect its age. There are several factors that induce companies to fight aging, sometimes with success. Some are rooted in psychology: Shrinking…
Quick Hits Illinois’s new AI regulations under HB 3773 take effect on January 1, 2026, giving employers a limited window to prepare for compliance. The law broadly defines “artificial intelligence” to include any machine-based system that generates outputs influencing employment decisions, with no specific exemptions provided. Employers must provide notice to employees if AI is used in recruitment, hiring, promotion, or other employment-related decisions. HB 3773 represents an additional AI-related…
A new space race—one fueled more by commercial conquest than intergalactic domination—is charting solutions to pressing problems in national security, climate change, and communication.With costs poised to drop and innovation on the rise, the economics of cosmic exploration and commerce are rapidly changing. Harvard Business School Senior Associate Dean Matthew Weinzierl’s new research explores the business opportunities hidden among the stars, particularly in data from and through space, but also…
If every company needs to be a software company, do you have a software organization that can deliver? The answer to that question could be decisive for the future of many companies.The ability to compete depends increasingly on how well organizations can build software products and services. Already, nearly 70 percent of top economic performers, versus just half of their peers, use their own software to differentiate themselves from their competitors.…
Few people like to consider themselves followers, but when it comes to evaluating goods, services, and even our own colleagues, it turns out many of us are. That matters because collective evaluation processes—whether a restaurant’s ratings on Yelp or performance reviews at work—can play a significant role in sinking or launching a product, service, or someone’s career. New research from Yale SOM’s Tristan Botelho shows how the design of evaluation…
Based on the foregoing, and taking into account countries’ experiences between 1992, when the unipolar world was established, and 2024 – namely, that the initiators of draft resolutions in the UN Security Council on restrictive measures were Western countries, we can assume that such attempts will continue in the future; we should not expect changes in Western sanctions policy, Milana Živanović writes. On May 30, 1992, amid the war in…
The sight of vineyards in Britain is becoming more common as hotter summers create increasingly suitable conditions for growing grapes. But behind this success story is a sobering one: climate change is shifting the regions of the world suitable for growing crops.Researchers at the University of Cambridge have uncovered a looming issue: as the land suitable for producing our food moves northwards, it will put a squeeze on the land…
Frontiers OSHA’s longest-serving administrator identifies safety approaches that work — and those that don’t. David Michaels August 28, 2024 Reading Time: 10 min Topics Frontiers An MIT SMR initiative exploring how technology is reshaping the practice of management. More in this series Neil Webb/theispot.com Chasing lower labor costs, most of the United States’ toy and game companies have relocated production outside the country, primarily to Asia. One of the only…
The rules governing the employment relationship are always changing. Laws creating new employer obligations, technology solutions making work more efficient and more complicated, and rules governing the resolution of disputes between employers and their workers are around every corner. Wage and Hour Around the Corner is a new blog series for employers, in-house lawyers, and HR, payroll, and compensation, that helps employers stay on the cutting edge of wage and…
A few months ago, Marcus Crook had an idea for the Melbourne streetwear label and social enterprise HoMie, where he is co-founder and creative director. He opened Microsoft Copilot in Windows and typed: “1990s metal band style font with the word ‘HoMie’ in one color screenprint, with distressed effects, black font on a white background.” Copilot, a generative AI assistant, produced some simple, cartoon-like images, which Crook transferred into editing…
Global stock markets fell sharply on 5 August 2024, causing concern for investors. The Dow Jones Industrial Average posted its worst day in around two years and the Japanese stock market saw its biggest drop since Black Monday in 1987. As an investor, it’s natural that you may be concerned about this uncertainty. After all, you’re likely to have invested so you can grow your wealth to achieve your financial…
Microsoft Azure enables educational institutions to adapt to new realities, improve operations, and protect student and faculty information from cyber threats. In today’s rapidly evolving world, education is facing unprecedented challenges that require transformation. Microsoft plays a pivotal role in providing the tools and resources schools need to create a more inclusive, equitable, and effective education environment. With AI-powered, secure, and flexible solutions, Microsoft Azure enables educational institutions to adapt…
Dilution occurs when a company issues new shares, reducing the ownership percentage of existing shareholders. This typically happens during fundraising rounds when new investors come on board, or through employee stock options, convertible securities, or mergers. Dilution can significantly impact an existing shareholder’s control over the company and its share of future profits. Imagine you own 10% of a company with 1,000 shares, meaning you hold 100 shares. If the…
The UN Sustainable Development Goals were set to be achieved by 2030—yet only 17 percent of SDG targets are on track. In Asia, research has shown that the region will only achieve the SDGs by 2062 if it carries on its present trajectory. Can AI play a meaningful role in accelerating Asia–Pacific’s initiatives to achieve the goals and improve people’s lives while protecting biodiversity? In this episode of the Future…
An analysis of a short programme teaching empathy in schools has found it had a positive impact on students’ behaviour and increased their emotional literacy within 10 weeks.The findings come from an evaluation of the “Empathy Programme”: a term-long course developed by the UK-based Empathy Studios. The research was conducted with support from academics at the Faculty of Education, University of Cambridge.Empathy Studios develops school-based, video-led programmes which aim to…
Cohere is carving a name for itself in the exploding AI market by focusing squarely on business clients and collaborating with major companies such as Google, Amazon, Oracle, and Microsoft, among others. Founded in 2019 by college friends Aidan Gomez, Nick Frosst, and Ivan Zhang, the company maintains offices in Toronto, San Francisco, New York, and London.Gomez sat down with McKinsey senior partner Ben Ellencweig, who leads alliances, acquisitions, and…
A hybrid approach that combines human knowledge and machine learning delivers better results for mission-critical simulations. Pushkar P. Apte and Costas J. Spanos August 27, 2024 Reading Time: 7 min Carolyn Geason-Beissel/MIT SMR | Getty Images “OK, Houston, we’ve had a problem here,” said astronaut John Swigert in 1970, after an explosion disabled the Apollo 13 spacecraft on its way to the moon, 200,000 miles from Earth. Those iconic words…
While generative AI is still a relatively new technology, data from McKinsey & Company1 suggests that 2024 will go down as a defining year for adoption. The percentage of organizations regularly using generative AI (65 percent) has nearly doubled in the past 10 months, and the number of organizations using it in two or more business functions jumped from one-third in 2023 to 50 percent this year. Businesses are also…
Amid growing corporate and public sector cyber breaches and recent high-profile technology outages, significant changes are occurring in both the role of boards in cybersecurity and within the cybersecurity industry itself. In this interview, McKinsey’s Sean Brown speaks with Vinnie Liu, the cofounder and CEO of the cybersecurity firm Bishop Fox, and McKinsey cyber-resilience experts Justin Greis and Daniel Wallance about how boards of directors should approach oversight of cybersecurity.…
We’re announcing new collaborations with Energix Renewables and Swift Current Energy to support our clean energy commitments in the U.S.
Plans for Cambridge Children’s Hospital can move ahead following the news that the Outline Business Case for the project has been signed off by the Chief Secretary to the Treasury and the Secretary of State for Health and Social Care. The project has been given the green light to begin the detailed process of appointing a contractor, to build the ground-breaking new facility in 2026.The ministerial backing means that the…
Nick Lowndes/Ikon Images Many organizations around the world recognize psychological safety (PS) as being crucial for innovation, collaboration, and transformation. Briefly put, psychological safety describes an environment in which candor is expected and won’t be penalized. Although it’s often covered in leadership training, most organizations struggle to convert a theoretical understanding of PS into bottom-line results. We’ve found that this gap can be closed through skills training in the context…
Consider this: Heathrow Airport in the United Kingdom currently uses more energy than the entire west African country of Sierra Leone. Despite Africa accounting for less than 4 percent of global greenhouse gas emissions, many of its countries face significant threats from climate change, including increased droughts, floods, heat waves and potential crop failures.According to the African Development Bank climate change costs the continent US$7 billion to US$15 billion yearly, a figure projected to…
Almost nine years after the landmark Paris Agreement and nearly halfway through what has been called a “decisive decade” for climate change, the world stands at a critical juncture in their transition away from fossil fuels. Translating into action the ambitious climate targets that have been put in place by governments and companies depends on accelerating the deployment and adoption of several interrelated technologies. These include renewable energy sources (RES),…
The Republic of Belarus has clearly expressed a desire to cooperate and build relationships in its foreign policy. As a country with an open economy (export quota exceeds 50%), Belarus has long been actively involved in various integration associations in the region (the CIS, EAEU, and the Union State of Belarus and Russia), international organisations (CSTO) and initiatives (for example, China’s Belt and Road). At the same time, the range…
To power the energy transition, mining companies will need to pivot toward producing critical minerals such as copper, lithium, and rare earth elements, which are essential components of electric vehicles, solar panels, and more. Meanwhile, industry leaders are contending with legacy issues on environmental, social, and governance (ESG) topics and recruitment and making progress on exploring technological developments regarding artificial intelligence and automation. McKinsey senior partners Harry Robinson and Richard…
Topics Frontiers An MIT SMR initiative exploring how technology is reshaping the practice of management. More in this series Kotryna Zukauskaite/theispot.com In today’s business environment, firms must navigate labor shortages, market shifts, geopolitical tensions that strain supply chains and manufacturing, and mandates to adopt sustainable practices. Meeting these demands will require innovation rooted in breakthrough science and engineering. Even companies in less R&D-intensive sectors will need to look to science-based…
If you’re in charge of cybersecurity for a United States government agency, you’re already familiar with Memorandum M-22-09, “Moving the U.S. Government Toward Zero Trust Cybersecurity Principles,” which the US Office of Management and Budget issued in January 2022. This memo set a September 30, 2024, deadline for meeting “specific cybersecurity standards and objectives” toward implementing a Zero Trust architecture in compliance with the Executive Order on Improving the Nation’s…
When ChatGPT and other large language models began entering the mainstream two years ago, it quickly became apparent the technology could excel at certain business functions, yet it was less clear how well artificial intelligence could handle more creative tasks.Sure, generative AI can summarize the content of an article, identify patterns in data, and produce derivative work—say, a song in the style of Taylor Swift or a poem in the…
Applying a growth mindset is the best way for businesses to approach the rapid changes born of generative AI (gen AI), says Clara Shih, CEO of Salesforce AI and today’s guest on this episode of the At the Edge podcast. Shih speaks with McKinsey senior partner Lareina Yee about the transformative power of gen AI to help accelerate workflows, the importance of change management, and the top questions business leaders are…
Extreme weather is leading to more frequent power grid strain and electricity outages. There are a range of regional cooperation agreements among utilities to share electricity. Expanding cooperation areas in the West could cut outage risks by as much as 40%. Expanding cooperation among electricity providers could also help ensure public opinion and policy remain favorable for renewable energy growth. This summer’s Western heat waves raise the specter of recent…
There are various theories explaining the motivation of both the past and current leadership of Israel to follow the path of economic rapprochement with the enemy in the regional conflict. According to the political interpretation, the desire to slow down the emergence of a Palestinian state is to blame. Following this logic, the Israeli authorities continued to refrain from changing the established practice, for fear of creating the illusion of…
“What Is Seen and What Is Not Seen.”: In the 19th century, French economist Frédéric Bastiat developed a didactic tool that continues to help us better understand — and ultimately better shape — government activity. It is easy to lose sight of the fact that every government expenditure has a “hidden” cost. Considering Opportunity Costs Every Swiss franc can only be spent once. If you subsidize tourism (visible), that money…
The economic proposals of both Donald Trump and Kamala Harris present a target-rich environment. In many ways, they ignore sound economic thinking. In one short article, I can’t deal with all of both candidates’ proposals and thinking on economics. In this article, I’ll focus on taxes and spending where, it’s fair to say, Harris is substantially worse. Unfortunately, although Trump is better, he’s not good. Taxes One of the best…
Speakers – Kathleen McConnell, Gina Ferrari, and Vincent Smolczynski About the Program: Do you operate a website in California? Are you considering a cookies banner? Does your website terms compel arbitration? Then you need to know about the latest in California Privacy Litigation and Compliance. Join us for an insightful webinar on navigating the complexities of CIPA (California Invasion of Privacy Act) compliance, focusing on website and cookie banner requirements. Our expert…