Data Drop: 4 Charts on Banks’ Generative AI Preparedness

Generative AI (genAI) stands to add up to $340 billion in value annually for the global banking sector, equivalent to 4.7% of revenues, per June 2023 McKinsey & Company estimates. That value will come mostly from improved productivity, as genAI takes on rote tasks and frees up humans to execute more complex tasks.

Keenly aware of this promise, banks are ramping up their investments: Their genAI spend is expected to surge from $6 billion globally in 2024 to $85 billion by 2030, per a January 2024 Juniper Research report.

But there’s a disconnect between what banks want to gain from genAI and how they’re allocating their genAI dollars. Here are four charts that identify the biggest obstacles banks need to address to reap the full benefits of genAI usage.

Only a minority of banks have dedicated genAI teams

Just 2 in 10 banks worldwide have a team focused solely on genAI, per a July 2023 EY survey. And while 70% reported funneling some resources into exploration and deployment, realizing genAI’s full potential will take longer and be less efficient for those banks. Without savvier resource allocation, banks will struggle to harness genAI’s full potential.