BCG in the News

CFO Dive

Maximizing the Value of AI

In CFO Dive, BCG’s Amanda Luther and Vladimir Lukic highlight that only 4% of companies fully capture the value of AI, with their biggest gains coming from business process upgrades. “When companies undertake digital or AI transformations, they need to focus two-thirds of their effort and resources on people-related capabilities, and the other third or so split between technology and algorithms,” says Luther. AI leaders anticipate 60% higher AI-driven revenue growth and 50% more cost reductions by 2027 compared to companies that are less focused on the technology.

Forbes

Generative AI: What Happens in HR Won’t Stay in HR

In her column for Forbes, BCG’s Julia Dhar highlights how generative AI could reshape pathways to the C-suite, particularly for human resources leaders. Dhar notes that HR teams are “leading the charge to integrate AI into corporate decision-making and operations,” with 70% to 80% of early AI adopters coming from HR. As these teams take the lead in AI integration, their roles may expand, creating more opportunities for leadership positions within organizations.

The Wall Street Journal

AI’s Role in Transforming Workflows

In The Wall Street Journal, BCG’s Sylvain Duranton highlights how many companies are embracing AI beyond chatbots by using retrieval-augmented generation (RAG) to connect internal data with large language models, transforming operations and workflows. “It’s massive. Most of what we do is RAG-based,” says Duranton. “Because AI requires constant access to all of the company’s data, it must be interconnected to the entire architecture. It’s a way to protect yourself.”

Mint

Driving Premiumization Through Innovation in India

In Mint, BCG’s Jean-Manuel Izaret and Nimisha Jain stress that businesses must align pricing with value, particularly in price-sensitive markets like India. With premiumization growing in sectors like skincare and automobiles, innovation and clear communication are crucial for justifying price increases and meeting consumers’ needs. As Jain says, “Brands need to deliver superior value—whether through innovation, better features, or enhanced performance—and India’s diverse market requires tailored strategies."

Financial Times

International Investment Summit Must Not Be the Peak of UK Government’s Ambitions

In the Financial Times and City AM, BCG’s Raoul Ruparel and Tim Figures emphasize that the recent International Investment Summit served as a key test of global investors’ commitment to UK growth. They highlight the UK’s strengths, such as its science base and financial services, while pointing to challenges like high energy costs, low infrastructure investment, and post-Brexit regulatory uncertainty. Ruparel notes that while executives likely “do not care all that much about the panels and agenda,” they do expect to hear “more than platitudes about the government’s plans” during such events.

Business Insider

GenAI Driving Workforce Innovation and Retention

In Business Insider, BCG’s Alicia Pittman highlights that over 70% of BCG’s 35,000 employees actively use generative AI thanks to the company’s upskilling efforts. She notes that GenAI boosts innovation and retention of human capital, saying, “It really changes the game in terms of the amount of learning you can keep within the team and not lose as people move around.” Moreover, it enables generalists to take on more technical tasks, with expert oversight for quality control.

American Banker

Agentic AI’s Impact on Banking

In American Banker, BCG’s Matt Kropp discusses how agentic AI, capable of making decisions with minimal human input, could revolutionize banking. He emphasizes that in highly regulated sectors like banking, transparency is critical, stating, “If you have a model that is making decisions, it can’t be a black box.” While Kropp anticipates significant advancements in the next five years, full adoption will take longer due to regulatory challenges and the complexities of implementing autonomous AI in the financial industry.

Forbes

Gen Z: They Highly Value ‘Values,’ But It’s No Dealbreaker

In her column for Forbes, BCG’s Julia Dhar highlights that while most Gen Z professionals want company values to align with their personal beliefs, they also recognize the need to prioritize compensation and financial independence. “It’s much easier to be idealistic when there’s little or no cost—when jobs are plentiful, for example, and the number of people seeking jobs is far less so,” Dhar argues, acknowledging the trade-offs Gen Z faces.

Forbes

Introducing GENE: BCG’s Advanced AI Chatbot

In Forbes, BCG’s Paul Michelman highlights the development of GENE, a proprietary chatbot that showcases the company’s AI capabilities. GENE utilizes widened context windows and faster inference, allowing it to integrate extensive information directly into its prompts. “In the prompt, we’ve fed it BCG research and proprietary BCG interviews that are not in the public domain,” says Michelman. Built on GPT-4o and custom-tuned, GENE serves multiple functions, including co-hosting podcasts, all while eliminating the need for external databases.

The Indian Express

Indian Firms Emerging as Leaders on Decarbonization Initiatives 

The Indian Express and Business Standard highlight a new global survey by BCG and CO2 AI, which reveals Indian companies are emerging as leaders in carbon emissions reporting, target setting, and reduction, just behind China and Brazil. Nearly a quarter (24%) of Indian firms have set Scope 1, 2, and 3 emissions reduction targets, compared to 16% of companies elsewhere around the world. BCG’s Diana Dimitrova asserts that “too few companies are seizing the financial gains offered from decarbonization.”

Forbes

Gen Z: They Want to Work Remotely and in the Office

In her column for Forbes, BCG’s Julia Dhar highlights that the Gen Z workforce values both remote flexibility and in-person interactions. “Gen Z wants the freedom to work remotely, at least some of the time,” she says. “But they prefer the human contact, connections, and collaboration the office provides.” Dhar emphasizes that hybrid work models are crucial for attracting and retaining Gen Z talent.

Women's Wear Daily

A Fresh Approach to Holiday Shopping

In Women’s Wear Daily, BCG’s 2024 Holiday Outlook Survey highlights that this year’s holiday season in the US will feature steady spending, but also notable challenges. While American household incomes remain strong, inflation, global conflicts, and the upcoming US election bring uncertainty. The study also notes the growth of weekday shopping, particularly online, which comprises 40% of weekday spending. “We wouldn’t be surprised to see online exceed 50% of weekday spending in the next two to four shopping seasons,” the authors state.