McKinsey Sees AI Adding Up To $340 Billion To Wall Street Profit

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Banks using generative artificial intelligence tools could boost their earnings by as much as $340 billion annually through increased productivity, according to consultants hoping to help the industry adapt in this fast-moving area. From a report:

This would amount to a 9% to 15% increase in operating profits, according to a McKinsey Global Institute report published Tuesday. Corporate and retail banks have the most to gain, the authors claimed. Generative AI was popularized last year when OpenAI’s ChatGPT tool launched, offering users sentences, summaries or even poetry based on simple prompts. The technology is trained on vast quantities of existing material that is used to generate its responses.

Tools like this could eventually take over repetitive tasks from most human workers, according to McKinsey’s research on 63 use cases across industries. While the initial efficiencies are set to be within companies — and the timeframe for adoption is unclear — the finance sector can expect the AI shift in the future “to be a lot more on the customer facing side,” McKinsey senior partner Gokhan Sari said in an interview. Sales and marketing, software engineering, and call center roles are among those most likely to be affected, said senior McKinsey partner Jared Moon. As many as 70% of business activities will have automated parts, which will leave only “a very small proportion” of jobs untouched, Moon added.

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