WEBVTT

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Hi, I'm Manveen Rana here in
Davos, and I'm joined by Ralph

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from Microsoft and Matthias from
BCG.

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Thank you both for being here.

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Thanks.

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Great to be here.

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I wanted to talk to you about
AI.

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So much has changed and there's
been so much innovation over

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just the last year.

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I'd love to know how you both
think this is already playing

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out in terms of people,
economies, and the planet.

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So Ralph, your thoughts first.

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Yeah, thanks for the question.

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I mean, we had the first
show-off of ChatGPT, now a

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product literally a year ago in
Davos in some small corners and

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then we did some work.

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The last 12 months have been
really meaningful to go along

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these lines where you say, I
think you have seen and

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understand what's possible for
people.

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You have seen actually now the
first real impact on what we

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think it can do on helping
climate and help the planet.

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But also in places where we see
crisis and economy coming

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forward, we see AI in many ways
being a way to open chapters,

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and attack and solve problems in
that space.

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So a massive change in the last
12 months on what we see today

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being as seen forward, going to
happen with AI. Matthias, for

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you?

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Yeah, I can only echo that.

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Maybe doubling down on planet
and on people.

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I think planet is going to be
real.

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In a recent study we did, we
found that about 5-10% of

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greenhouse gas emissions could
be reduced by the use of GenAI

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by 2030, which is amazing and
shows the real potential of the

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technology. And people,

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similarly, I think people is
going to be the major, both the

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major unlock for the technology,
but it's also going to be a

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major issue to work on.

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We always used to say AI or
deploying GenAI

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is about 10/20/70, so it's 10%
the algorithm, 20% tech, and 70%

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the people aspect.

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So people really play a crucial
role in many dimensions.

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Well, Matthias has brought up
people.

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Ralph for you, you work across
Europe, the Middle East, and

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Africa.

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What sort of impact are you
already seeing on today's

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workforce?

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I mean we actually, to support
and understand better the

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impact, we did a study on the
impact index on productivity.

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And so the data tells us right
now, even on the basis of having

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now more than a million people
using Copilot as an example, we

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see slightly more than 70%
productivity on people's work.

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But I think the more interesting
KPI is that more than 60%

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actually feel the quality of
work is coming forward.

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So when you see us going, we
talk about Copilot and that's

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the spirit of what we do,
enabling people to do their job

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in a different way, in a more
productive way, but also find

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new ways to do jobs differently,
and with more fun, and more

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efficiency.

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Ourself,

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we had put that technology
forward now in our services.

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So you have seen 31% more
productivity on services, but

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you've also seen 27% more
quality of customer engagement.

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So it's very people-oriented

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outcomes we see right now in the
way we roll it out and really

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people use Copilot technology
and we're excited on that

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specific data points.

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Yeah.

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It sounds like this going very
much the future. Matthias,

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how much are you already seeing
companies, across the regions

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that you're covering,

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how much are they already
benefiting?

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What are the real sort of
opportunities for them, and the

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exciting developments for them
coming from the adoption of AI

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into the way they work?

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So we see a lot of that.

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I mean, in a recent survey
amongst 1,400 executives, 87%

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had GenAI

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as one of their top three
priorities for '24.

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So this answers your first
question, right?

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This is top of mind, clearly.

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Now what are they doing with
this?

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We would distinguish three big
streams of actions.

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The first one is deploy: that is
sort of, it's literally across

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the board to the organization.

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It's your everyday function,
right.

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That's the sweet spot of
Copilot.

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And there you can gain 5-10%
productivity gains very easily.

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So that's the first one.

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The second one is all about
reshaping.

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That's for the more business
critical processes on the sales

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side,

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on the marketing side, depends a
bit on the company you're in.

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There,

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the gains are higher. They're up
to 20-30% because you also sort

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of tap into the effectiveness
part, not just the efficiency

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part, but also into the
effectiveness part of the

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technology potential.

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And lastly then, it's of course
also about reinventing.

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There is entirely new business
models that can be built on this

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technology and that's of course
also where the potentials are

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the highest, so leaders in the
field,

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they do all three of them. They
deploy it, they use it to

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reshape processes, and they
reinvent business models.

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Ralph, are you see are you
seeing the same? Look, I mean

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data, as he says, IDC is giving
us 25% more increase of

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productivity on using
technology.

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For me, the exciting part is
that we now see, by industry,

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specific use cases coming
forward.

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So if I take financial
industries as an example, very

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excited on customer engagements
or everything which is sales,

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everything, which is customer
engagement, everything which is

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customer support, is just such a
simple, straightforward,

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meaningful case they have, which
is mind-blowing

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to see how the uptake is. You
take now the next wave of what

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is coming the last month,

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I would say marketing.

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So the demand of reshaping
marketing campaigns, the speed

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you have through technology,
individualizing marketing and

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customer reach is so different.
Now, material science, just us

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seeing recently coming forward
where we tested the technology

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to bring out a new way of
batteries, and we saved 70% of

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critical earth in batteries by
just applying material science

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AI capabilities. Which is kind
of incredible to just see the

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example going forward.

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And lastly, I think what we see
is companies really being now

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able to unleash the full
information of a company on

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their assets.

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And so what we do by that one,
we see something which you

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called Copilot studios, you're
building access to simple chat

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mechanics to all information of
a company across the

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organization.

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So when you do an RFP today, you
can actually get access to

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existing, when you go and do
pricing, you get access to

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existing pricing.

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And then you don't have the
whole data research work to be

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done because it comes through a
questioning methodology to your

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hands, and that is really
reshaping what we see right now,

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and it is cross-industries, with
specific industry examples. It

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makes a huge difference.

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So interesting hearing about
some of these partnerships with

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industry. Give us a sense of the
sort of momentum you're seeing

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behind generative AI and also
sort of for Microsoft, you know,

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what is your go-to-market
strategy on this.

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Look, the demand on modeling the
Copilot we had over the last

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weeks has just asked us to
reshape how we think what is

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possible.

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So that's exciting.

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But the real data point for us
is we have more than 11,000

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customers right now are using
Azure OpenAI.

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That was the single biggest
uptake we ever had on any

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product, across the company
history, at any time.

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So this signal is also kind of
bringing us in these very unique

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situations where we need like
BCG as a partner to help us go

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through and really scale
actually what we can do, because

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we don't have capacity, and we
don't have expertise in all

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industries, in all scenarios.

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And the demand is there and now
it's on us in these partnerships

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just to be very pointed, very
targeted, and bring it

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effectively to customers what
they can use with technology.

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Well, Ralph, Matthias, thank you
both for joining us.

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Thank you.

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Been a pleasure.

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Thank you so much.

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I'm Manveen Rana.