Banks’ AI cost-cutting benefits won’t last, will ‘erode’ profits | Computer Weekly

▤ Summary

McKinsey says banks can cut operating costs with AI, but those gains may fade as customers and competitors respond. The report warns that AI agents could shift deposits toward higher-yield accounts, reducing industry profits over time. Evident’s research shows US banks are moving faster on AI adoption than UK peers and converting earlier investments into business value. The article also highlights talent as a key factor, and it notes that more finance firms plan to raise AI spending over the next year.

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