{
  "docId": "019dd923-5ca1-7489-b638-8d31fa857bad",
  "docSlug": "01d275675630cbbe",
  "documentTitle": "How nine digital frontrunners can lead on AI in Europe",
  "authorId": "McKinsey",
  "authorName": "McKinsey",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.445,
  "pageNumber": 32,
  "pageCount": 66,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "impact_sizing",
  "function": "quantify_impact",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "The slide uses a bar chart to compare historical investment scaling (4x) with required future AI investment scaling (8x).",
  "elementsJson": [
    "paragraph",
    "bar_chart_vertical",
    "headline_text"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b638-8d31fa857bad/32",
  "deckHref": "/decks/019dd923-5ca1-7489-b638-8d31fa857bad",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b638-8d31fa857bad.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b638-8d31fa857bad#slide-32",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Capturing the economic impact will likely take time and require significant investments.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-cdeb-70a8-9776-0136046cf134",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.45,
        "w": 0.35,
        "x": 0.58,
        "y": 0.28
      },
      "kind": "chart",
      "text": "Required DF9 AI investment in 2018 – 2030 to achieve full AI economic impact potential",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d1047bf0-2ee7-46d5-b315-a2cb65c5d5d6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Investment scaling factor: 8x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-cdeb-70a8-9776-067c5894b3d1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.38,
        "x": 0.104,
        "y": 0.465
      },
      "kind": "paragraph",
      "text": "Patience and commitment will be required because capturing the upside from AI adoption will require time and significant investment. There will be lags and transition costs associated with deploying technologies, especially where major shifts in skills and labor markets are fluid. Furthermore, the size of the potential will depend on how the private and public sector prioritize investment.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "03b499b2-2a51-4318-a6aa-7a9dd56c79cc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.38,
        "x": 0.104,
        "y": 0.62
      },
      "kind": "paragraph",
      "text": "The DF9 can rightly boast about having invested in the software and databases that were key underlying technologies for the first wave of digital, but these investments will not be sufficient to support the rollout of AI. In the first digital wave from 1995 to 2007, the group scaled up investment by a factor of four. The AI wave, however, will likely produce twice the economic potential up to 2030, so we believe scaling up will be required in the order of eight times (Exhibit 17).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3867fb29-1145-41a0-ae9e-e188790ed86e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.38,
        "x": 0.104,
        "y": 0.185
      },
      "kind": "paragraph",
      "text": "Still, AI adoption may lead to negative impacts. As the DF9 economies transition to new ways of working, both companies and employees could suffer. Firms will need to hire the right employees, ensure proper data management, and introduce new technological infrastructures. During the transition, employees may need reskilling, which can entail temporary unemployment. Still, in the longer run, we expect AI will have a neutral effect on employment, with as many jobs created as are destroyed. Lastly, AI may create a wage premium for people with relevant skills.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bc723fd7-9add-45f4-89e9-0388397191ce",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.25,
        "x": 0.104,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Pitchbook; McKinsey Global Institute analysis; IHS Markit",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2da57bec-0eeb-42dd-961c-6e274ce36d5a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.35,
        "x": 0.58,
        "y": 0.205
      },
      "kind": "title",
      "text": "EXHIBIT 17: DF9 scaled investments by 4x in previous technology wave, while the AI wave will likely require ~8x",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9f160531-0a34-4e17-bf8c-c9766ef3a949",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "Investment scaling factor",
      "numberRaw": "8x",
      "numberKind": "multiplier",
      "actionTitle": "EXHIBIT 17: DF9 scaled investments by 4x in previous technology wave, while the AI wave will likely require ~8x",
      "calloutText": "Capturing the economic impact will likely take time and require significant investments.",
      "numberScale": null,
      "numberValue": 8,
      "metricFamily": "market_size",
      "numberCurrency": null
    }
  ],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 36,
      "from": 29,
      "beatId": "a7dc601f-1884-4b37-8f8f-f2f98d8cb744",
      "arcName": "The Sparkline",
      "arcSlug": "sparkline",
      "beatName": "The economic opportunity provided by AI",
      "beatSlug": "sparkline-what-could-be-4",
      "evidence": "The document highlights the potential economic impact of AI on the DF9",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 36,
      "from": 29,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "9f59490d-a8d4-4294-9f48-48857fee2bda",
      "evidence": "The document highlights the potential economic impact of AI on the DF9 and the cost of inaction",
      "position": 1,
      "objective": "The cost of inaction for the DF9",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}