Latest news with #McKinsey
Forbes
12 hours ago
- Business
- Forbes
Surging Investments in AI Are Transforming Cybersecurity
Human Digital Avatar as a Symbol of AI presses a virtual button on screen with Shield icon. Cyber ... More Security and Data Protection Concept. AI is transforming cybersecurity, and investments are following in close concert with those trends. AI systems seek to replicate human traits and computational capabilities in a machine and surpass human limitations and speed. Elements of AI emergence consist of machine learning and natural language processing. Today, AI can understand, diagnose, and solve problems from both structured and unstructured data—and in some cases, without being specifically programmed. AI is becoming integral in cybersecurity, and companies are logically investing in AI-based defenses against cyberattacks, and the demand for them is expected to grow in the next few years. AI offers a logical collection of tools and the best chance for defenders that work in an environment characterized by an uneven threat level and are already short on workforce and money. The demand for AI is growing due to expanded risks and threats to enterprises. This is unambiguous evidence that AI is becoming increasingly important in cybersecurity, and organizations must capitalize on its potential to remain competitive. The global market for AI in cybersecurity is surging. McKinsey & Company predicts a $5 to $7 trillion potential economic impact by this year. McKinsey says that AI is making the $2 trillion cybersecurity market even larger. In the first quarter of 2024, venture capital financing for cybersecurity firms, particularly those focused on AI security solutions, experienced significant growth. According to figures from Crunchbase, startups raised over $2.7 billion in 154 deals. From January 1 to May 5, 2024, private equity and venture capital firms said they will spend $8.1 billion on cybersecurity companies. That's a 91% rise from the same time in 2023, when it was $4.46 billion. Major cybersecurity investments in 2024 The sums invested are going up for a solid reason. Eighty-eight percent of cybersecurity specialists said that AI will be needed to make security tasks more efficient. The Real-World Impact of AI on Cybersecurity Professionals And 62% of businesses are using or looking into AI for cybersecurity. Cybersecurity professionals have mixed feelings about AI: 93% are afraid of threats from AI, while 69% think it is the answer. In the next several years, AI's ability to change things is likely to have a big effect on the industry. 33+ AI in Cybersecurity Statistics for 2025: Friend or Foe? 'The promise of these technologies is very exciting. Microsoft UK's chief envisioning officer Dave Choplin claimed that AI is 'the most important technology that anybody on the planet is working on today.' R&D and investments are a good barometer of what lies ahead in future technological developments. Microsoft Exec: 'AI Is the Most Important Technology That Anybody on the Planet Is Working on Today' - Business InsiderLock sign SMART CYBERSECURITY AI has much to offer cybersecurity, both in terms of new features and in terms of improving defensive operations in contexts where threats are present. As sensors and algorithms come together, automated cybersecurity solutions for threat detection, information assurance, and resilience may be what keeps businesses safe while they make the most of innovative technology. The overall IT perimeter for many enterprises and institutions is now more intricate and spread out because of on-premises systems, cloud computing, and edge computing. This means that threat detection, analysis, and incident response need to be better, and there has to be greater visibility. This element is an important part of smart cybersecurity. Smart cybersecurity can find, filter, neutralize, and fix cyber threats. It has a lot of potential. AI tools for threat intelligence and network surveillance can help make cybersecurity better. Generative AI (GenAI) algorithms might use predictive models more effectively in cybersecurity, which would result in better security data and better outcomes. Gen AI might be able to apply predictive models in cybersecurity in a way that works better, giving better results and more trustworthy security data. AI agents and GenAI could work together to suggest ways to reduce risk and improve businesses and organizations' cybersecurity expertise and incident response. Generative AI can quickly find useful information, the best ways to do things, and proposed actions from the body of knowledge in the security business. Also, Agentic AI-enabled cybersecurity has a lot of potential for finding, blocking, stopping, and fixing cyberthreats. Agentic AI can help with the main problems of threat detection, reaction speed, and analyst workload. These technologies automate tasks while still allowing human monitoring, which makes security teams work better in a more dangerous digital world. With enhanced analysis of background information, practitioners can quickly figure out what kind of attack it is and what they should do next. This factor alone can shorten the time that bad actors spend on a site from days to just minutes, which is a significant plus for cyber defenders. Smart algorithms can be applied to monitor the network for anomalous behavior, find new dangers that don't have visible signs, and take the right steps. It can also be used to compare data from different silos to figure out network risks and weaknesses, and the methods of attacks that are happening. Identity and access management are an important part of zero trust cybersecurity. AI could help by validating the accuracy of data across numerous remote databases. To protect digital convergence, AI will need to be used in cybersecurity defenses and the development of next-generation cyber capabilities, such as predictive security and analytics. AI will be able to improve cybersecurity in areas like Data Loss Prevention (DLP), data privacy and identity governance, data access restrictions, risk assessment, and managing the security posture of data for data discovery and categorization. Cybersecurity and AI are key areas of focus in the emerging digital ecosystem. These AI and computing technology tools can also contribute to advancements in various fields, including genetic engineering, augmented reality, robotics, renewable energies, big data, digital security, and quantum computing. Get ready for an innovative and exciting, but potentially precarious ride.
Entrepreneur
13 hours ago
- Business
- Entrepreneur
Here's Why You Shouldn't Obsess Over Metrics
Opinions expressed by Entrepreneur contributors are their own. Here's a fun thing that happens in product management. You wake up one morning and your daily active users are down 15%. Your conversion rate, though? Up 8%. Customer satisfaction scores just hit an all-time high, but your churn rate is creeping upward. Your metrics dashboard looks like a Jackson Pollock painting, except instead of paint splatters, it's conflicting signals that make you question everything you thought you knew about your product. The thing about metrics is that they're like teenagers. Sometimes they're telling you something important. Sometimes they're just being dramatic. The trick is figuring out which is which before you make a decision you'll regret. Let's start with a fundamental truth: Not all metrics deserve equal attention at all times. This sounds obvious until you're in a meeting where someone is freaking out because time-on-page dropped by 12 seconds. Is that bad? Maybe. Or maybe you just made your product more efficient. According to research from McKinsey, companies that excel at data-driven decision making are 23 times more likely to acquire customers. Great. But here's what they don't tell you: Being data-driven doesn't mean reacting to every data point like it's a fire alarm. If you were driving a car and every warning light demanded immediate action, you'd never get anywhere. Some lights matter more than others. Some can wait. The same principle applies to product metrics. Yet somehow, we've created a culture where every metric fluctuation triggers a crisis meeting. Related: 5 Steps to Creating Metrics That Matter for Your Company Decision framework So, when should you actually panic? Here's a framework that's served me well. First, look for metric combinations that tell a story. Single metrics lie. When daily active users drop but session duration increases, that's not necessarily bad. Maybe you're shedding casual users while your core audience becomes more engaged. That could actually be progress. The real warning signs come in clusters. Declining user growth plus increasing churn plus dropping engagement? Now you've got a pattern worth investigating. It's like medical symptoms. A headache alone might mean nothing. A headache with fever and sensitivity to light? Time to see a doctor. PayPal discovered this the hard way in its early days. They were obsessing over user acquisition metrics while missing the bigger picture: Their fraud rates were climbing faster than their legitimate transaction volume. The metrics were all there, but nobody was looking at them together. Second, distinguish between leading and lagging indicators. Some metrics predict the future. Others just confirm what already happened. Confusing the two is like using your rearview mirror to navigate forward. Customer support ticket volume? That's often a leading indicator. When it spikes, something is broken. Revenue? Usually lagging. By the time revenue drops, the problem started months ago. Netflix figured this out when it noticed password sharing complaints increasing before subscriber growth stalled. The complaints were the canary in the coal mine. The growth stall was just the inevitable result. Third, understand your metric's natural volatility. Some metrics are drama queens by nature. They fluctuate wildly as part of their normal behavior. Others are steady until something's genuinely wrong. Ecommerce conversion rates can swing 30% day to day based on traffic sources, time of month and even weather patterns. A single day's dip means nothing. But if your enterprise software's monthly recurring revenue suddenly drops? That's not normal volatility. That's a customer jumping ship. Spotify learned this when it initially panicked over daily listening hour variations. Turns out, people just listen to less music on Tuesdays. Once they understood the natural patterns, they could spot actual anomalies. Fourth, consider the cost of being wrong. What happens if you ignore this metric and you're wrong? What happens if you panic and you're wrong? Sometimes the cost of overreacting exceeds the cost of waiting. Imagine redesigning your entire onboarding flow because new user activation dropped for a week. You spend months on the project, only to discover the drop was seasonal. Other times, waiting is catastrophic. When security breach indicators spike, you don't wait for statistical significance. You act immediately because the downside of being wrong is minimal compared to the downside of being right but slow. Related: Use the Metrics That Really Matter in Your Business Metric hierarchy Here's my advice. Build yourself a metric hierarchy. At the top, put the three to five numbers that genuinely predict your business's health. These get daily attention. Everything else? Check weekly or monthly. More importantly, train your team to think in stories, not statistics. When someone comes to you with a metric panic, ask them to tell you the user story behind the number. What's actually happening to real people using your product? The truth is, most metric movements are noise. The signal is rare, which is precisely why it's so valuable when you find it. The best product managers I know have developed an almost intuitive sense for which metrics deserve attention. Until you develop that intuition, remember this: Your metrics are tools, not masters. They should inform your decisions, not make them for you. Sometimes, the wisest decision is to close the dashboard and talk to an actual user. Because at the end of the day, products succeed when they solve real problems for real people. No metric, no matter how sophisticated, changes that fundamental truth. Related: Why Focusing on KPIs Too Much Can Backfire
Forbes
17 hours ago
- Health
- Forbes
How Bias Harms Black Women In Leadership
Still shot of a businesswoman delivering a speech during a conference. Bias against Black women in the workplace has unfortunately become a common phenomenon in corporate boardrooms across America, where Black women face an impossible reality. When Black women show vulnerability, the kind of authentic leadership increasingly valued in modern workplaces, they risk being perceived as unfit for advancement. On the other hand, when they project the strength society demands from Black women, they risk facing the 'angry Black woman' stereotype that can equally affect their career progression. This double bind represents one of the most obvious barriers in contemporary workplace cultures overall, where the mere act of being perceived as vulnerable can come at a professional cost, one that only worsens over entire careers. Data from McKinsey's 2024 Women in the Workplace study shows that Black women's promotion rates regressed to 2020 levels despite notable improvements in 2021 and 2022. This regression isn't coincidental but reflects the effect of bias, which can make every workplace negotiation a high-stakes performance where authenticity itself becomes a luxury Black women cannot afford. The concept of vulnerability as weakness runs counter to decades of leadership research that champions emotional intelligence and authentic leadership. Yet for Black women, displaying any form of professional vulnerability—asking for help, admitting uncertainty, or showing emotion—triggers a cascade of biased perceptions that can corrode credibility and derail career progression. This dynamic plays out in measurable ways. Dr. Kia-Rai Prewitt's research at the Cleveland Clinic reveals something many Black professionals already know too well—when a Black employee shows anger, people are more likely to see it as a personal flaw instead of a natural reaction to stress or unfair treatment. This bias means that even when Black women have every right to be upset, their emotions get turned against them. The Leadership Authority Gap Multiple studies show that Black women in leadership positions are held to different and higher standards than white women and leaders of other racial identities. This 'prove-it-again' dynamic means that any display of uncertainty or request for support is used as evidence of incompetence rather than human leadership. Black businesswoman and businessman shaking hands at a meeting. Adding to these impossible standards is the 'Glass Cliff Effect,' the tendency for organizations to look to Black women to lead at times of great change, scrutiny or tumult. It's no wonder that many feel they are held to impossible standards without the benefit of tools and resources that more privileged groups can lean on. Organizations that are committed to addressing this problem are setting guardrails in place to address bias at its source, and despite potential DEI pushback, these solutions remain possible. Research suggests that anonymous evaluations reduce bias in decision-making and improve outcomes for women and people of color. Companies are also restructuring performance reviews to focus on concrete achievements rather than subjective assessments of 'leadership presence' or 'cultural fit,' terms often used to exclude qualified Black women. Successful interventions can look like: 1. Structured negotiation processes that remove subjective evaluation from salary discussions 2. Bias interruption training that teaches evaluators to recognize and counter their unconscious preferences 3. Mentorship programs that specifically connect Black women with senior leaders who can advocate for their advancement 4. Transparent promotion criteria that reduce the role of informal networks in career progression The professional cost of being perceived as vulnerable represents a fundamental challenge to workplace equity and until organizations address the systematic bias that punishes Black women for both strength and vulnerability, they will continue to lose qualified talent and perpetuate structures that limit innovation and growth. The solution calls for something more sustainable than awareness; instead, it demands systemic change that recognizes bias as an organizational problem that needs organizational solutions. Companies that succeed in this transformation won't just be doing the right thing; they'll be positioning themselves to attract and retain the diverse leadership talent that drives competitive advantage in an increasingly complex business environment. For Black women navigating these challenges, the research offers both validation and strategy. The problem isn't their negotiation skills or leadership style but a system that must be changed, not accommodated. And increasingly, the organizations that recognize how harmful bias against Black women in the workplace can be are the ones staying ahead of the learning curve and building the workplaces of the future.
Forbes
19 hours ago
- Business
- Forbes
How Individual Investors Are Shaping Corporate America
Balanced Investment Co. founder Suresh Basnet specializes in values-centered investing and is a certified meditation coach. We often hear that "voting with your wallet" is one of the most powerful ways to effect change. As a financial advisor who has spent decades helping families and institutions match their investments with their values, I've watched local investors grapple with a fundamental question: Can individual investment choices really make a difference? The answer is yes—but perhaps not in the way you'd expect. Despite recent political debates over environmental, social and governance (ESG) investing, America's retirement accounts wield more influence over corporate America than most people realize. Recent shareholder votes at major corporations prove this point dramatically. The Growing Influence Of ESG Investing Despite political debates over ESG investing, the numbers tell an undeniable story. Global sustainable fund assets reached a record $3.2 trillion at the end of 2024, more than quadruple the size in 2018, according to Morningstar. More importantly, companies with strong ESG performance have demonstrated remarkable resilience during market volatility. According to McKinsey research, 'companies that achieve better growth and profitability than their peers while improving sustainability and ESG outgrow their peers and exceed them in shareholder returns.' Research has found that companies with better ESG ratings enjoy both a lower cost of equity and a lower cost of debt. This translates to more efficient operations and influences how investors view companies. Corporate Response To Investor Pressure Recent events demonstrate that corporations are highly attuned to shareholder priorities, even amid polarized political narratives. While some companies publicly distance themselves from ESG terminology, their actions tell a different story when faced with shareholder interests. Major companies are strategically reframing rather than abandoning sustainability initiatives. A comprehensive May survey by The Conference Board found that 52% of executives are reworking their sustainability messaging, including moving away from the term "ESG," while 80% of companies are adjusting their ESG strategies in response to political pressures—but in most cases are continuing the underlying work. This aligns with the pushback from shareholders against attempts to abandon social responsibility frameworks. Over 97% of Apple shareholders voted against a proposal asking the company to "cease DEI efforts" at its February meeting. More than 98% of Costco shares voted against a similar proposal in January. Meanwhile, financial powerhouses continue defending these practices as essential to business success. JPMorgan Chase CEO Jamie Dimon said the bank will continue its outreach to Black, Hispanic, LGBT, veteran and disabled communities, as reported by Reuters. As an early advocate of ESG investing, I've watched this movement evolve from niche to mainstream from the West Coast to America's Heartland. The message is increasingly clear: Companies face greater risk from ignoring ESG factors than from embracing them. The Balanced Approach To Value-Aligned Investing I've spent my career dispelling the myth that investing according to personal values requires sacrificing returns. My approach helps clients evaluate decisions across multiple dimensions: spiritual, health, family, finances and career. This holistic view reveals that successful investing isn't solely about financial returns. It's also about ensuring your money works in alignment with your deeper values and priorities. One critical insight from guiding hundreds of clients through retirement planning: Investments that contradict personal values create cognitive dissonance that diminishes life satisfaction, regardless of returns. For the average professional with a 401(k) or investment portfolio, implementing this approach isn't complicated: • Review your current investments for alignment with your values. • Engage with your workplace retirement plan administrator about ESG options. • Consider direct stock ownership for greater shareholder voting power. • Participate in shareholder meetings and proxy votes. • Consolidate smaller accounts for greater investment flexibility. The Future Of Financial Influence As more investors recognize their power, corporate behavior is increasingly reflecting shareholder values rather than just quarterly profit motives. The rise of shareholder activism has created unprecedented democratization of corporate governance. The implications extend beyond individual companies to entire industries and public policy. When corporations see their market valuation and cost of capital directly tied to environmental and social performance, they become powerful advocates for policy solutions that enable sustainable business practices. The finance industry, once focused exclusively on short-term returns, increasingly recognizes that long-term prosperity requires addressing climate risks, social inequities and governance failures. Your retirement account or investment portfolio may seem like just another financial instrument, but in reality, it's one of your most powerful tools for creating the world you wish to see. As I often tell my meditation and financial coaching clients, true wealth comes when your money, relationships and values exist in harmony. The next time you check your 401(k) statement or investment account, remember: You're not just saving for retirement—you're shaping our collective future. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Forbes
20 hours ago
- Business
- Forbes
AI Isn't Paying Off—Yet: 5 Fast Fixes To Finally See Results
AI Isn't Paying Off—Yet: 5 Fast Fixes to Finally See Results getty This week, McKinsey reported something shocking: 'Nearly eight in ten respondents we surveyed say their companies use gen AI—yet just as many say they've seen no significant bottom-line impact.' In other words, AI is everywhere—except on the P&L. And yesterday, I saw this disconnect play out in real time. On a call with the founder and CEO of a diversified multinational (with business units in machine manufacturing, chemistry, construction, and more), I heard deep frustration. He had just left a meeting with his company's AI Implementation Committee. Their update? 'Despite every effort, nearly nobody across our business units wants to take on AI. The most common reason? 'Everything is already working as it is.'' Sound familiar? This resistance to change isn't new—but today, it's amplified by something even more dangerous: burnout and disengagement. Gallup's freshly released 2025 State of the Global Workplace report shows: 'Global employee engagement declined to 21% in 2024, with managers experiencing the largest drop. This marks only the second decline in engagement in the past 12 years — a worrying sign for organizations already struggling with productivity.' Let's pause on that: 79% of employees are disengaged. So here we are, trying to introduce a new technological era inside companies full of exhausted, change-weary humans. No wonder AI isn't paying off—yet. But it can. And it doesn't require billion-dollar labs or moonshot strategies. Here are 5 fast, proven ways to unlock real value from AI—starting right now: Want employees to embrace AI at work? Start by helping them use it in their lives. Show them how to meal-plan with ChatGPT. Help them write a vacation itinerary. Let them summarize a podcast or generate ideas for their kid's birthday party. It's the personal use of AI that builds confidence and curiosity. Once people experience how AI can reduce stress in their daily lives, they're far more likely to see potential in the workplace. As I wrote in my recent article 'Surviving Uncertainty: 5 Strategies To Stay Sane, Sharp And Financially Sound', the most powerful tools we have are the ones we feel personally connected to. The same is true for AI. Think of it as a proof-of-concept movement—one person at a time. #2 - Solve Burnout, Not Just Bottlenecks Leaders love to talk about how AI can speed things up. But what your employees often want most… is to slow things down. Instead of pitching AI as an efficiency tool, try presenting it as an energy tool. • 'Let's use this to cut your weekly reporting time by 50%.' • 'Let's find a way to never start from scratch again.' • 'Let's automate your most soul-sucking tasks.' AI isn't just a productivity story—it's a wellness story. When you frame AI as a path to less stress, you'll see more engagement. #3 - Create AI Champions, Not Committees Most 'AI committees' become black holes for innovation. Replace them with a small squad of internal AI champions—early adopters from various departments who can experiment, share learnings, and support their peers. People trust people they already work with. When adoption is peer-driven, resistance drops. Peer influence beats policy every time. #4 - Swap Mandates for Micro-Wins Top-down AI rollouts almost always trigger resistance. The alternative? Low-risk experiments with clear, measurable wins. • Let one team automate meeting notes. • Let another create AI-powered customer responses. • Let a third run a competitor analysis in minutes. Then, showcase results. Make the micro-wins visible. You're not just building a business case—you're building a movement. This kind of approach is what I call 'swarming leadership'—a concept I explored in 'Swarming Leadership: Are You Leading the Hive or Getting Stung?'. In fast-changing environments, top-down control fails. Swarming wins. #5 - Teach AI Through Real-Life Roles, Not Job Titles Forget abstract AI training sessions. Instead, build persona-based learning journeys: • For marketers: How to use AI to create 10 subject line variations in seconds. • For finance teams: How to turn raw data into dashboards, instantly. • For customer support: How to draft responses or FAQs on the fly. The goal isn't to teach 'AI' as a generic concept—it's to make it feel like a helpful assistant in their specific context. When training connects directly to day-to-day tasks, engagement goes up—and fear goes down. The Bottom Line AI is not failing because of the tech. It's failing because of people—burnt out, disengaged, unsure of where to start. But that's also the opportunity. We don't need more AI strategy decks. We need human-centered rollout strategies that meet people where they are. • Make it personal • Start small • Show results • Build culture from the inside out Because the AI era isn't just coming—it's already here. And the payoff belongs to those ready to roll it out right.
