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How banks can find ROI on AI investments, according to McKinsey

Dec 09, 2024 - businessinsider.com
McKinsey is advising banks and financial institutions on maximizing returns from their generative AI investments, emphasizing the importance of viewing AI as a business opportunity rather than a technological challenge. According to Larry Lerner from McKinsey, successful AI implementation requires business leaders to take accountability, focus on a few high-impact use cases, and ensure CEO buy-in. The key to realizing tangible benefits lies in concentrating efforts on areas where ROI can be tracked, such as AI tools that enhance customer experience and generate measurable value.

Lerner highlights the importance of reusability and adoption in scaling AI initiatives. By building solutions that can be redeployed multiple times, banks can accelerate development and scale efficiently. However, achieving success also depends on effectively driving adoption among employees and customers, a challenge that many institutions have struggled with in past technology cycles. Ultimately, the frontrunners in AI will be those who treat it as a strategic business initiative and foster strong partnerships between business and tech leaders.

Key takeaways:

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  • Viewing AI as a business opportunity rather than a technological problem is crucial for success, with business leaders taking accountability for results.
  • Focusing on a few key use cases rather than spreading efforts thin across many areas can lead to faster realization of value from AI investments.
  • Choosing areas where ROI can be clearly tracked, such as AI tools that improve customer experience, is essential for demonstrating measurable value.
  • Reusability of AI solutions can accelerate development and scaling, while successful execution depends heavily on adoption by workers and customers.
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