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Management consulting firm McKinsey & Company has reportedly instructed its mainland China operations to scale back involvement in projects involving generative artificial intelligence. 


The move comes amid rising geopolitical tensions between the United States and China, with the U.S. government increasing scrutiny of American firms operating in sectors such as AI and quantum computing in China.


Read More: <a href="https://www.storyboard18.com/brand-makers/amazon-closes-shanghai-ai-lab-as-u-s-china-tensions-mount-76291.htm">Amazon closes Shanghai AI Lab as U.S.-China tensions mount</a> 


Read More: <a href="https://www.storyboard18.com/digital/amid-mckinsey-layoffs-paytm-ceo-declares-chatgpt-the-new-consultant-in-town-67727.htm">Amid McKinsey layoffs, Paytm CEO declares ChatGPT the 'new consultant in town'</a> 


It was further reported that the ban extends to generative AI projects within the offices of multinational clients, but does not prohibit the management consulting firm’s China business from collaborating with companies using more established forms of AI in their products.


According to its website, the company employs over 1,000 individuals across six regions in China. This report comes amid escalating geopolitical tensions between Washington and Beijing, during which China imposed exit bans on certain U.S. citizens visiting the country. 


Read More: <a href="https://www.storyboard18.com/brand-marketing/mckinsey-acquires-et-medialabs-a-leader-in-customer-centric-digital-marketing-58598.htm">McKinsey acquires ET Medialabs, a leader in customer-centric digital marketing</a>

MCKINSEY COMPANY