Generative AI (gen AI) is poised to fundamentally change how many industries operate. Senior partner Jared Moon and coauthors find that banking could be one of the biggest beneficiaries of the shift, with an annual potential of $200 billion to $340 billion in new value (equivalent to 9 to 15 percent of operating profits). While banks have focused on productivity in their initial gen AI pilots, the technology could transform how some jobs are done and how customers interact with banks. It also might lead to entirely new business models.
Image description:
A segmented bar chart displays the value in billions of dollars created by different types of AI—generative AI, advanced AI, and analytics—in different banking types. The top 3 banking segments are risk and legal, $385 billion; corporate banking, $321 billion; and retail banking, $306 billion. The remaining banking sectors—asset management, software engineering, wealth management, capital markets and investment banking, talent and organization, and IT and finance—are each below $60 billion.
Source: The economic potential of generative AI: The next productivity frontier, McKinsey Global Institute, June 2023; QuantumBlack, AI by McKinsey traditional advanced analytics and AI analysis
End of image description.
To read the article, see “Capturing the full value of generative AI in banking,” December 5, 2023.