Gen AI: Banking’s multi-trillion dollar opportunity
The McKinsey Global Institute has estimated that the rise of gen AI could bring immense value to various industries, ranging from $2.6 trillion to $4.4 trillion annually. In particular, the banking sector stands to benefit significantly, with a potential annual value of $200 billion to $340 billion, equivalent to 9 to 15 percent of operating profits. This surge in #value will primarily stem from increased productivity. All segments and functions within the banking industry are expected to experience economic growth, with the corporate and retail sectors reaping the highest absolute gains of $56 billion and $54 billion, respectively. It is worth noting that while banks have prioritized productivity in their initial gen AI trials due to economic pressures, this technology has the potential to revolutionize job roles and customer interactions, potentially leading to entirely new business models.