(Reuters) – Mckinsey has instructed businesses in mainland China to avoid projects deploying generative artificial intelligence, the Financial Times reported Wednesday, saying that two people know the problem.
The move was spurred by the US government, which is 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 multinational client offices, but it cannot stop McKinsey’s Chinese operations from working with companies with more established AI in their products, the report added.
A spokesman for McKinsey further strengthened its client service policy in China last year with work focusing on multinational and private sector companies.
“We continue to evolve and strengthen our approach in accordance with the strictest client selection policy of our profession,” the spokesman added.
The company employs more than 1,000 individuals in six regions, according to its website.
The report comes at a time of growing tensions between Washington and Beijing. There, China imposes an exit ban on some US citizens visiting the country.
Last year, US lawmakers called for an investigation into McKinsey’s failure to disclose his work with the Chinese government.
(Reporting by Gnaneshwar Rajan and Bipasha Dey of Bengaluru, edited by Mrigank Dhaniwala and Nivedita Bhattacharjee)
