Banks pour billions into AI, but most see no ROI. Here’s why

THE private banking divisions of banks have long struggled to serve customers other than ultra-high-net-worth individuals. Tasks such as portfolio research, client profiling, and compliance are simply too time-consuming to offer to any but the richest clients.

This constraint has remained despite the rapid expansion of mass affluent households across high-growth markets. In turn, it has created a big opportunity for premium banking services, yet the industry has been unable to tap it.

Artificial intelligence co-pilots have emerged as a solution to this supply and demand mismatch. However, the gap between promise and revenue is wider than most banks want to admit. Here’s why.