McKinsey has reportedly directed its China-based business to abstain from generative AI projects, especially those involving multinational clients. This decision follows increased scrutiny from Washington regarding US firms operating in sensitive technological sectors within China. The restriction specifically targets projects that deploy generative AI.
Despite the ban on generative AI projects, McKinsey's China branch can still engage with companies utilising more established AI technologies in their products. The consulting firm employs over 1,000 individuals across six regions in China.
This move occurs amidst escalating tensions between the US and China, highlighting the geopolitical considerations influencing business decisions in the technology sector. It also reflects growing concerns about the involvement of US entities in China's technological advancements.
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