McKinsey – Scaling gen AI in banking: Choosing the best operating model

Generative AI (gen AI) is transforming the banking industry by enhancing customer service, preventing fraud, and improving efficiency. McKinsey Global Institute estimates that gen AI could add significant value to the banking sector annually. However, implementing gen AI comes with challenges, such as potential risks and complications. To capture the full potential of gen AI, banks must focus on seven key dimensions, including the operating model. A centrally led operating model is seen as the most effective approach for gen AI in banking, as it allows for better allocation of talent, fosters teamwork, and enables the organization to stay ahead in the evolving gen AI landscape. Centralization has proven to deliver the best results for financial institutions utilizing gen AI. As the technology advances, a more federated approach may be adopted in the future, but for now, centralization is yielding the highest rewards.