McKinsey bars China business from generative AI consultancy work
Global consulting giant McKinsey & Company has reportedly instructed its mainland China operations to avoid involvement in projects using generative artificial intelligence (AI).
This move comes amid escalating scrutiny from the U.S. government on American firms operating in sensitive technological fields such as AI and quantum computing within China, the FT said, News.Az reports, citing Reuters.
According to the report, the restriction also applies to generative AI projects at multinational clients’ offices in China but does not prevent McKinsey’s Chinese branch from advising companies utilizing more established types of AI technologies.
A McKinsey spokesperson told Reuters in a statement that last year the firm had already tightened its client service policies in China, focusing on multinational corporations and private-sector companies. “We follow the most rigorous client selection policy in our profession, and we continue to evolve and strengthen our approach,” the spokesperson said.
McKinsey employs over 1,000 people across six regions in China, according to its website.
The report emerges against a backdrop of rising tensions between Washington and Beijing. In recent years, China has imposed exit bans on some U.S. citizens visiting the country, while U.S. lawmakers have called for investigations into McKinsey’s past work with the Chinese government, citing concerns over transparency.
As geopolitical frictions intensify, McKinsey’s decision reflects broader challenges faced by multinational companies navigating regulatory and political complexities in China’s rapidly advancing tech sector.
Similar news
