Artificial intelligence is reshaping banking, but the upside comes with hidden risks.
- Big banks like Bank of America and Société Générale already use large language models to cut costs and boost productivity.
- AI‑driven personal agents could help customers automatically hunt for the best rates, making deposits more volatile.
- Increased competition for loans may compress credit margins, challenging banks’ traditional profit streams.
- The key question is how much of AI’s gains banks can keep over time.
In short, while AI promises efficiency, banks must navigate the new volatility it brings to deposits and lending.