New delhi [India]May 21 (ani): Only one out of four banks is worldwide is using artificial intelligence tools to Gain a competitive advantage over peers, even as such as successful Transforming the banking sector, according to a report by consultancy firm Boston Consulting Group (BCG).
The Banking Industry is at a Pivotal Point in 2025. Artificial Intelligence (AI) is no longer an emerging trend –t is a game-corner, unlocking new frontiers in efficiency, Accessibility, and Economic Growth.
BCG’s Report, “The AI Reckoning in Banking,” Outlines how Artificial Intelligence –Specially Generative and Agentic Ai-Is Fundamentally Transforming The Banking Industry.
The report also highlighted a widing gap between banks that are leading the Ai shift and that Falling Dangerly Behind.
According to the BCG Report, the rest of the banks (3 out of 4) are experienceing on the Margins –Often without Strategic Alignment, Clear Return on Investment (Roi) Metrix, Or a Path to SCALE.
BCG Found That AI is Dismantling Traditional Banking Advantages. Tools like genai and agentic Ai are making it Easier for Customers to Switch Providers, Reducing Margins Through Pricing Transparency, and Shifting Customer Control to Digital Platforms.
Banks’ Profit Models and Core Services are also under pressure, assured the BCG report. “AI-Driven Underwriting, Real-Time Credit Risk, and Embedded Finance Ecosystems are eroding fee-based income and redefining the bank’s role in the value chain,” BCG noted.
BCG also found that most banks lacked the infrastructure to scale ai. “Legacy Systems, Fragmened Data, and Insufficient Orchestration Capabilites are Blocking Real-Time, Integrated Ai Applications. Commitment, “BCG suggested.
The talent and governance gaps are also widing. “Two-Thirds of Banks Struggle to Hire Ai Talent, And Many Still Need to Train Leaders to Interpret or Challenge ai Outputs. Meanwhile, regulatory AS Pressure to act proactively, “BCG said.
In conclusion, it assessed that the message is clear: bankers who focus ai investments on high-impact area –and align tech with talent and process– pulling ahead fast. (Ani)