McKinsey’s China business is avoiding projects involving generative artificial intelligence due to increased US government scrutiny on US companies in sensitive sectors like AI and quantum computing in China. The ban applies to multinational client offices but not established AI projects. McKinsey has strengthened client service policies in China, focusing on multinational and Chinese private sector firms. The company has over 1000 employees in China. Tensions between Washington and Beijing are rising, with China imposing exit bans on some US citizens. US lawmakers previously called for an investigation into McKinsey’s undisclosed work with China’s government.

Read more at Yahoo Finance: McKinsey bars China business from generative AI consultancy work, FT reports