McKinsey bars China business from generative AI consultancy work: Report
has instructed its mainland
China
business to steer clear of projects deploying generative
artificial intelligence
, the Financial Times reported on Wednesday, citing two people with knowledge of the matter.
The US-based consulting firm did not immediately respond to a request for comment outside regular business hours. Reuters could not immediately confirm the report.
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The move was prompted by the US governments increasing scrutiny of
US companies
operating in
sensitive sectors
such as AI and
quantum
computing in China, the newspaper said.
The ban extends to projects in the offices of multinational clients, but doesn't stop McKinsey's China business from working with companies that have more established types of AI in their products, the report added.
The company employs over 1000 individuals in China, across six regions, according to its website.
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The report comes at a time of increasing tension between
Washington
and Beijing, where China has imposed exit bans on some US citizens visiting the nation.
Last year, US lawmakers demanded a probe into McKinsey's failure to disclose its work with China's government.
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