In the next few years, banks' use of artificial intelligence will increasingly affect their credit ratings, S&P Global Ratings said in a report Monday. The credit rating agency said that the bank's ultimate benefit or loss will depend on the maturity of its AI strategy and the soundness of its governance framework. According to S&P, “Banks vary in the speed at which they adopt AI, maturity of governance, and degree of operational readiness, which means that in the next few years, AI will increasingly be a factor that strengthens or weakens the credit qualifications of financial institutions.” S&P conducted a survey of 179 financial institutions around the world in June. The surveyed agencies expect AI to help cut costs by up to 4% this year, and this range will expand to 6%-8% by 2028. About 84% of organizations say they are currently using AI to support business functions and automation. Due to regulatory and reputational risks, less than a third of organizations say they are using AI to develop new products and services.

In the next few years, banks' use of artificial intelligence will increasingly affect their credit ratings, S&P Global Ratings said in a report Monday. The credit rating agency said that the bank's ultimate benefit or loss will depend on the maturity of its AI strategy and the soundness of its governance framework. According to S&P, “Banks vary in the speed at which they adopt AI, maturity of governance, and degree of operational readiness, which means that in the next few years, AI will increasingly be a factor that strengthens or weakens the credit qualifications of financial institutions.” S&P conducted a survey of 179 financial institutions around the world in June. The surveyed agencies expect AI to help cut costs by up to 4% this year, and this range will expand to 6%-8% by 2028. About 84% of organizations say they are currently using AI to support business functions and automation. Due to regulatory and reputational risks, less than a third of organizations say they are using AI to develop new products and services.