Source page: McKinsey & Company
Commentary
Banking’s gen AI opportunity
Banking | Artificial Intelligence
January 23, 2024 – 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.
To read the article, see “Capturing the full value of generative AI in banking,” December 5, 2023.
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Visual form
Segmented bar chart with value-at-stake columns.
Layout / body structure
The chart is a left-to-right ranking of banking functions, with each function shown as a vertical bar split across generative AI, advanced AI, and traditional AI and analytics.
What is being compared
It compares the value created by AI across banking segments and functions, ranging from risk and legal through corporate banking, retail banking, asset management, software engineering, wealth management, capital markets, talent and organization, and IT and finance.
Measurement system
All values are measured in billions of dollars, and the color split distinguishes the contribution from generative AI versus the older AI layers.
Visible structure inside the graphic
Each function has a stacked column, the largest columns are annotated directly with their segment names and totals, and the smaller columns continue the ranking to the right.
Main takeaway from the visual
The largest pool of AI value sits in the core banking businesses and control functions, with only a long tail of much smaller opportunity blocks after the top three.
Key standout values or extremes
Risk and legal is 385 billion, corporate banking 321, retail banking 306, asset management 59, software engineering 48, wealth management 45, capital markets and investment banking 29, talent and organization 18, and IT and finance 10.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.