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McKinsey Halts GenAI Projects in China Amid US Scrutiny

McKinsey Halts GenAI Projects in China Amid US Scrutiny

Published:
2025-07-23 17:40:03
18
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BTCCSquare news:

McKinsey & Company has suspended generative AI initiatives in mainland China following heightened U.S. regulatory pressure. The consultancy now restricts such work to legacy AI systems, impacting engagements with multinational clients in the region.

The decision reflects escalating tech tensions between Washington and Beijing, forcing Western firms to recalibrate operations in sensitive sectors. McKinsey continues using proprietary AI tools internally despite the external limitations.

This strategic shift coincides with the firm's broader AI transformation and renewed focus on Chinese private sector clients amid tightening oversight. The MOVE underscores how geopolitical friction is reshaping technology deployment across borders.

|Square

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