McKinsey Halts Generative AI Work in China Amid Geopolitical Tensions

McKinsey has decided to halt its China operations from engaging in consultancy work related to generative artificial intelligence. This decision comes amid heightened geopolitical tensions and increased scrutiny from the US government concerning American companies' involvement in sensitive sectors in China, such as AI and quantum computing.

The directive affects McKinsey's mainland Chinese operations, preventing them from participating in projects that deploy generative AI. However, the firm will continue to work with companies that incorporate more established forms of AI in their products. This move is seen as a precautionary measure, as the US government has not imposed an explicit ban on consultancies advising on AI in China.

Despite this restriction, McKinsey remains committed to its global leadership in AI transformation. The firm continues to develop internal AI tools and systems through its AI-focused unit, QuantumBlack, to support its consultants worldwide. The decision reflects a cautious approach in navigating the complex geopolitical landscape while maintaining its presence in the Chinese market.