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McKinsey's James Kaplan: AI turns messy data into knowledge graphs

McKinsey's James Kaplan: AI turns messy data into knowledge graphs

3 Key Points

  1. What happened

    McKinsey distinguished partner James Kaplan said AI can now interrogate messy, unstructured data and turn it into structured data and deterministic business rules stored in a knowledge graph, work once done by business analysts or data scientists.

  2. Why it matters

    That capability lets enterprises query complicated processes and define their business rules programmatically, which Kaplan said opens up whole new frontiers.

WHO IT HITSEnterprise data and analytics teams that currently rely on analysts to model complex business processes would be able to automate that work. IT leaders evaluating AI platforms may also look at knowledge graphs as a way to give generative AI applications context.

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Context & Analysis

Kaplan framed knowledge graphs as familiar technology that enterprises have been slow to adopt. He noted that social media companies arrived at the power of graphs before the enterprise did, and that anyone using LinkedIn, Wikipedia or social media is already using a graph. The shift he described is about who does the work: previously, evaluating messy information required time-consuming, expensive and often imperfect work by business analysts or data scientists. Now, he said, AI can interrogate that data and create deterministic business rules programmatically.

McKinsey's own use of the technology runs through EcliptOS, which the firm describes as an AI operating system that connects C-suite strategy with everyday execution through agentic workflows. Kaplan said the system amounts to a graph of databases, and that graphs' flexible data schemas make it easier to create a virtual graph connecting many databases. He also suggested business priorities should guide where organizations apply AI improvements, giving customer experience as a possible example ahead of productivity. The richer the interconnections among nodes, he said, the more intelligence the graph has and the more things can be determined.

FAQ
What is a knowledge graph?
It is a way to describe a customer, product or process in the context of its relationship to other things, according to McKinsey's James Kaplan. He noted people already use graphs through services like LinkedIn and Wikipedia.
How is McKinsey using this technology?
McKinsey uses AI and knowledge graphs through EcliptOS, an AI operating system designed to connect C-suite strategy with everyday execution through agentic workflows. It employs a semantic data layer that organizes data and its relationships to support generative AI applications.
Why are knowledge graphs better than relational databases for this?
Kaplan said graphs are more intuitive than relational databases because they have more flexible data schemas. Relational databases work well for transactional data but are much less good at ambiguous or complicated data.
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