The banking industry is one of the sectors with the largest opportunities from activities related to generative artificial intelligence, according to a McKinsey report, with an estimated annual value of at least $200 billion.
Among all industries worldwide, generative artificial intelligence (GenAI) could add the equivalent of $2.6 trillion to $4.4 trillion in value annually across 63 use cases analyzed, according to a report by the McKinsey Global Institute.
Banking is expected to be the beneficiary of one of the largest such opportunities. $200 billion to $340 billion in value – the equivalent of 9-15 percent of current operating profits – could be created, largely from increased productivity.
Overall, the risk and legal function is expected to create the highest value from AI in general with a total of $385 billion from the usage of traditional AI, advanced AI and GenAI. This was followed by corporate banking at $321 billion and retail banking at $306 billion.
Seven Dimensions
Relative to traditional AI projects, GenAI ones will be relatively «easier and more straightforward», the report noted, though there are challenges in areas such as model tuning and data quality.
Based on its findings, McKinsey highlighted seven key dimensions to focus on for delivering «sustained value beyond initial proofs of concept». They include: a strategic road map; talent; operating model; technology; data; risk and controls; as well as adoption and change management.
«Generative AI burst onto the scene in early 2023 and is showing clearly positive results—and raising new potential risks—for organizations worldwide,» the consultancy firm said. «As banks continue to face broader pressure on banking economics, management teams are thinking about ways to scale AI within their organizations – and do it quickly.»
