1、December 2024Financial Services PracticeExtracting value from AI in banking:Rewiring the enterpriseTo gain material value from AI,banks need to move beyond experimentation to transform critical business areas,including by reimagining complex workflows with multiagent systems.This article is a collab

2、orative effort by Carlo Giovine,Larry Lerner,Renny Thomas,Shwaitang Singh,Sudhakar Kakulavarapu,and Violet Chung,with Yuvika Motwani,representing views from McKinseys Financial Services Practice.Much has been written about the power of AI,including generative AI(gen AI),to transform banking.Beyond u

3、shering in the next wave of automation,AI promises to make banks more intelligent,efficient,and better able to achieve stronger financial performance.While the buzz is undeniable,many banking C-suite leaders are increasingly asking questions about the realization of value in light of the headwinds f

4、acing the sector.Will AI live up to expectations?After initial experimentation,how can banks go from proof of concept to proof of value and truly reimagine and transform the enterprise using AI?How soon,if ever,can banks see a tangible return on their investments in AI?These questions are gaining re

5、levance as the global banking sector contends with challenges such as uneven labor productivity results,including falling productivity at US banks,despite high technology spending relative to other sectors.Banks also face slowing revenue and loan growth and competition from businesses beyond banking

6、such as private credit firms,fintechs,neobanks,payment solutions businesses,and nonbank providersfor the largest profit pools.To maintain the current return on tangible equity margins,banks will need to cut costs much faster as revenue growth slows.AI has the potential to chip away at these problems