According to Larry Lerner, tangible returns from AI investments are emerging in some firms through cost savings, but many remain stuck in ‘POC purgatory,’ failing to see substantial benefits after years of investment. He highlights that only six out of 50 banks have reported real cost savings or revenue increases due to AI, indicating significant disparity in success rates.
Lerner emphasizes that successful banks view AI as a business opportunity rather than merely a technological challenge, suggesting that a shift in mindset is essential for organizations to capitalize on their generative AI initiatives.
Key decisions, such as focusing on a few specific applications of AI and ensuring CEO buy-in, are critical components that can distinguish successful financial institutions from their less successful counterparts in the rapidly evolving landscape of AI investment.
The pressing question for banks investing in AI is not just about technology, but rather when and how these investments will yield returns. It’s essential for leaders to move beyond experimentation to actionable strategies that drive real business results.
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