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McKinsey wonders how to sell AI apps with no measurable benefits

theregister.com

141–150 of 165 posts

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#141
post #53

Earlier quoted context omitted.

I wonder if the AI summary could be legally perilous in this case

I assume it had the usual "this is AI, and thus probably bullshit" disclaimers that one finds on such things.

PLEASE DON'T USE ME FOR ANYTHING IMPORTANT BUT I PROMISE I'M STILL USEFUL

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#142
post #14

I hadn't ever tried Notion before but I sort of vaguely understood it was a nice way to make some documentation and wiki type content. I had a need for something like a table that I could filter that I would normally just do in Google Sheets. So I go check out Notion and their entire site is focused on AI. Look at what this agent can do, or that. I signed up and the entire signup flow is also focused on AI. Finally I…

Just tried Notion AI to build me a mermaid diagram and it was totally useless. So probably not bothering with that again. I can write good enough English without it and I don’t want to sound like generic slop anyway.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#143

Earlier quoted context omitted.

Speak for yourself. I've been shouting against AI from minute 1, in defense of artists and anyone else It doesn't matter. People are convinced it's a miracle technology, so I'm just a backwards luddite resisting progress

Keep at it, friend. You are not alone.

Thanks, I really appreciate it

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#144

I am curious if the timing have impacted the inability to measure a benefit. AI is rolling out at the same time as widespread return to office campaigns. Remote work was widely studied and touted as improving efficiency, but no one is showing the drop for RTO. Is AI in part just balancing it out? There's also an ongoing massive brain drain. Many companies are either laying off their most tenured and competent employe…

Problem is with RTO is companies aren't getting the benefit of using AI to manage all their internal knowledge. Bringing people back into the office defeats the purpose of having this central "worker" who can answer queries, point people in the right direction etc. People will just fallback on shouting across the office and scheduling pointless meetings.

Really companies failed to make remote work because it meant giving up a lot of middle-management power and some people realising their job means very little.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#145

This is because they're trying to reduce the wrong headcount. The largest inefficiencies in corpo orgs lie in the ways they organize their knowledge and information stores, and in how they manage decision making. The rank and file generally have a really good grasp on their subset of the domain -- they have expertise and experience, as well as local context. Small teams, their managers -- those are the ones who actua…

You can't 90% utilize everyone. There are lots of rolls where they are needed maybe 2-5% for edge cases, but those cases are brake the company ones. So they do mediocre seemingly unimportant rolls because they are willing/able to meet those 2-5% requirements. They get kissed up to because they literally keep the company around.

I said before but in a pre-2000 world when I worked at a public company I got lectured when my employees timecards utilization were too high because you can't actually utilize people at those levels full time continuously and management wouldn't sign off on incorrect timecards. But the modern world pretends it's fine and is trying to optimize to it and it just won't work. You can't optimize out the key knowledge, and you can't keep the key knowledge and be 80% utilized doing something else.

This is all based on some ideal world that doesn't exist in reality.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#146

This is because they're trying to reduce the wrong headcount. The largest inefficiencies in corpo orgs lie in the ways they organize their knowledge and information stores, and in how they manage decision making. The rank and file generally have a really good grasp on their subset of the domain -- they have expertise and experience, as well as local context. Small teams, their managers -- those are the ones who actua…

I think another barrier is that end users don't trust IT to not pull the rug out from under us. It's quite a bit of effort to learn and figure out workflows for actually getting work done and IT doesn't tend to give a shit about that. Particularly enterprise IT's attitude about trials can kiss my ass. Enterprise IT has their timeline, and I have my deadlines. I'll get to it when I have time. But particularly we're al…

What the above person is arguing for is this this exact thing but instead of 'security you don't need' it's now people you don't need because AI can scan an information repository and be the expert.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#147

Earlier quoted context omitted.

I think another barrier is that end users don't trust IT to not pull the rug out from under us. It's quite a bit of effort to learn and figure out workflows for actually getting work done and IT doesn't tend to give a shit about that. Particularly enterprise IT's attitude about trials can kiss my ass. Enterprise IT has their timeline, and I have my deadlines. I'll get to it when I have time. But particularly we're al…

What the above person is arguing for is this this exact thing but instead of 'security you don't need' it's now people you don't need because AI can scan an information repository and be the expert.

I think I disagree. I'm arguing that AI is useful from the bottom up. That's my personal opinion. The top generally doesn't actually understand how work is actually done. This idea that LLM replaces people seems like pure hype to me after having started to play with it (on my own time... after picking from among tools... because so far the ID-blessed CoPilot has been less than worthless and hasn't actually saved me any time... whereas Claude is just amazing and I keep finding new things for it to achieve). These are tools that can help people be more productive if they figure out how to use it to do work. In my experience Claude is like having free minions to do annoying grunt work so I get more of my work done. C-suite yapping doesn't actually get work done because they never actually do real work anyway.

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#148

Earlier quoted context omitted.

The startup I work at is doing the same strategy pivot, we’re integrating AI into every feature of the platform. Every textbox or input field has the option to generate the value from AI. Feature that no one used when it was a simple form with a button can now be done through our chatbot. We have two key product metrics for the entire company and one of them is how many AI tokens our users are generating.

AI tokens that you pay for?

Mostly the free ones we give every user, we’re just measuring usage of AI features

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#149

This is because they're trying to reduce the wrong headcount. The largest inefficiencies in corpo orgs lie in the ways they organize their knowledge and information stores, and in how they manage decision making. The rank and file generally have a really good grasp on their subset of the domain -- they have expertise and experience, as well as local context. Small teams, their managers -- those are the ones who actua…

I shared this recently with regard to teams cross training.

I worked in tech support at a big company long ago. Tech support, sales, and engineering used to have a week (for each employee) where we would leave our team and follow the other team around.

It provided incredible efficiency. I now knew what sales was talking about when they called me, they understood how I worked, engineering and I got along so well they used to invite me to their team when they had lunch catered.

Who didn't we need anymore? The middle managers between the groups who brokered what info each group could see, and how we communicated among groups. We solved problems before they started all on our own.

The middle managers won in the end, ending the cross training, too costly they said, but I think they realized that we just didn't need them / weren't engaging them anymore...

Re: McKinsey wonders how to sell AI apps with no measurable benefits

#150

> while quoting an HR executive at a Fortune 100 company griping: "All of these copilots are supposed to make work more efficient with fewer people, but my business leaders are also saying they can't reduce head count yet." I'm surprised McKinsey convinced someone to say the quiet part out loud

I find it all quite strange: - AI companies of course will try and sell you that you can reduce headcount with AI - CEO's will parrot this talking point without ever talking a closer look. - Everyone lower down on the org chart minus the engineers are wondering why the change hasn't started yet. - Meanwhile engineers are ripping their hair out cause they know that AI in it's current state will likely not replace any…

I was working with a team on a pretty simple AI solution we were adding to our larger product. Every time we talk to someone we're telling them "still need a human to validate this..."
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