“The McKinsey Global Institute estimates that among industries globally, gen AI could add the equivalent of $2.6 trillion to $4.4 trillion annually in value across the 63 use cases it analyzed.2 Among industry sectors, banking is expected to have one of the largest opportunities: an annual potential of $200 billion to $340 billion (equivalent to 9 to 15 percent of operating profits), largely from increased productivity (exhibit).3 The economic impact will likely benefit all banking segments and functions, with the greatest absolute gains in the corporate and retail sectors ($56 billion and $54 billion, respectively; see sidebar “How banks are using generative AI”). (Notably, while banks have rightly focused on productivity in their initial gen AI pilots due to the broader pressure on banking economics,4 the technology could greatly alter how some jobs are done and how customers interact with banks. It might even lead to entirely new business models.)”