McKinsey Says Bank Profits Face Possible $170 Billion AI Hit

Banks face a hit to their bottom lines of as much as $170 billion if they don’t adapt their business models to respond to customers turning to artificial intelligence to optimize their finances.

The consultancy firm predicted that customer uptake of agentic AI — effectively autonomous bots — would hit the profits banks earn from customer money in low interest accounts, according to a report from McKinseypublished Thursday.

“Imagine you have an AI agent that says: ‘Hey, you could save $2,000-a-year by moving your money,’” Pradip Patiath, a senior partner at McKinsey, said. “It automates a lot of the ...