04-10-2023
Sam Smith
3 Ways Generative AI Will Transform Banking
The headline of our analysis is that gen AI will change banking—but banking itself will not change. The technology will transform not the work of banking itself but rather how that work gets done.
Banking will always consist of the fundamentals: taking in deposits, lending money and managing payments. But gen AI is going to fundamentally rewire how that work gets done.
While there is general acceptance of the importance of gen AI across banking, there is also trepidation about how and where it should be used. But any bank that sits on the sidelines for long will risk being left behind.
In fact, early adopters are already using it to drive dramatic efficiency gains. One global bank, for example, has implemented an email routing system that uses AI and machine learning; it eliminated 40% of email traffic in its first year. GitHub’s generative AI Copilot coding tool, meanwhile, can help a bank’s programmers write code up to 55% faster (and create 46% of the required code itself). And Morgan Stanley has deployed a gen AI tool that gives its financial advisors improved access to the bank’s “intellectual capital” of around 100,000 reports and documents during client conversations.
But use cases like these are only the beginning.
