McKinseyCompanyGlobal Energy Materials PracticeBeyond the hype:Newopportunities for gen Al inenergy and materialsGenerative Al can create additional value from other forms of Al andanalytics-and the energy and materials sector is uniquely well-positioned tobenefit from these advancements.This article is a collaborative effort by Filipe Barbosa,Soenke Lehmitz,Jukka Maksimainen,Lapo Mori,BryanRichardson,Erik Roth,Humayun Tai,Sapna Thakker,lan Wells,and Rodney Zemmel representing views fromMcKinsey's Global Energy Materials PracticeFebruary 2024It's nearly impossible to scroll through dailyfromgen Al.Within the agricultural,chemical,headlines without encountering commentaryenergy,and materials sectors,many companieson generative Al(gen Al)-the latest frontier ofare now moving beyond straightforward use casesartificial intelligence.It seems as if every Siliconand taking increasingly innovative approachesValley personality,venture capitalist,or casualto adopting gen Al,and estimates show that antechnologist is talking about ChatGPT or Bard,additional $390 billion to $550 billion of value canamong dozens of other systems,and the potentialbe created in the years to come.these tools have to unlock possibilities far beyondimagination.Harnessing the power of gen AlHow closely should leaders pay attention to theGen Al's potential to accelerate growth and reducehype?This isn't the first time that technologycosts cannot be ignored (exhibit).This is particularlypundits have lined up behind the latest best thing.true for the energy and materials space,which reliesShould gen Albe dismissed as a fad,or shouldheavily on data and analytics for innovation andleaders double down on the latest tools as thecomprises sectors built upon increasingly nuancedpanacea for their technical troubles?and complicated processes.Simply stated,genAl adds intelligence to any data,which can thenThe answer is likely neither.Our research shows thatbe used to inform decision making-potentiallyorganizations that rely on innovation,data analysis,reducing long processes to a single question-andand process automation stand to benefit the mostit enables workers to gain previously unknownExhibitGenerative Al could create additional value potential above whatcould be unlocked by other Al and analytics.Al's potential impact on the global economy,trillion17.1-25.613.6-22.16.1-7.911.0-17.72.6-4.4-15-40%-35-70%incrementalincrementaleconomic impacteconomic impactAdvanced analyticsNew generativeTotal useTotal Altraditional machineAl use casescase-drivenenabled by generativeeconomiclearning,and deeppotentialAl,including in usepotentiallearning'casesUpdated use case estimates from"Notes from the Al frontier:Applications and value of deep leaming."McKinsey Gbbal Institute,April 17,2018.Source:"The economic potential of generative Al:The next productivity frontier,"Me Kinsey.June 14.2023McKinsey CompanyBeyond the hype:Newopportunitiesforgen Alin energy and materials