Banks are adopting generative AI, which promises earnings growth, improvements to decision-making, and better risk management. But it also comes with new risks, concerns, and costs that banks will have to manage.

We believe testing of generative AI solutions will accelerate over the next two to five years, while benefits are likely to prove incremental.

Banks that successfully deploy AI could benefit from capabilities and efficiencies that lead to competitive advantages and differentiation. This may, eventually, have implications for our views on creditworthiness, primarily through three areas: business franchise, financial performance, and risk management.