Ni Yili Photo/provided to NBD

Ni Yili, Chairman of McKinsey China, emphasized in an interview with National Business Daily (NBD) that the gap between companies in the future will hinge on their utilization of technology, particularly AI. To keep pace with technological advancements, businesses must contemplate from three levels of application.

During the 15th Annual Meeting of the New Champions of the World Economic Forum held in Dalian, Ni highlighted the significant economic opportunities brought by innovation, especially in the era of AI-led technological revolution. He stressed that while many companies have access to technology, few truly understand how to harness AI effectively. The key lies in transforming raw data into valuable assets and creating application scenarios that leverage AI's full potential.

Ni pointed out that companies should first focus on utilizing data effectively at a basic level, then develop these into application scenarios, and finally, continuously learn and improve through advanced AI like GenAI, such as ChatGPT. He warned that failing to do so could lead to significant lagging behind in the rapid pace of technological development.

Regarding multinational enterprises in China, Ni noted that despite the challenges, China remains a crucial market. He advised multinationals to focus on niche markets, localize their products, reduce costs, and re-strategize for a more refined operation in the Chinese market.

For Chinese companies looking to "go global," Ni suggested a paradigm shift from "supplying globally" to becoming a "transnational enterprise." This involves adapting to local cultures, regulations, and contributing to the local society, which is essential for true international competitiveness.

Ni concluded that Chinese enterprises must transition from merely selling products to integrating into the social fabric of the regions they operate in, thus becoming a part of the local community and culture. This transformation is crucial for Chinese companies to establish themselves as global players in the long term.