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