?? MUST READ????#GenAI Could Add up to $340 billion to Bank Profits....IF they get it right!
McKinsey is predicting big profits for banks using GenAI!?This isn’t their first of what I like to call “big numbers” reports for GenAI, and it won’t be their last.
Mckinsey first touts big numbers then hits readers with the best sales pitch since, “Buy one get one free.”
The pitch is that McKinsey says all it takes is “seven dimensions” and a McKinsey consulting contract to get GenAI right.
This is a stretch, so forgive me if I am more sarcastic than normal tonight!
??TAKEAWAYS:??The Seven Dimensions:
1. Strategic Road Map
This is where you're supposed to hire McKinsey! Vision, alignment, a list of priority domains, clear "from/to goals," assessment of enabling capabilities, scale up, and finally, a partnership plan. This is where McKinsey makes its money.
Exactly where are the GenAI business cases coming from, and why do McKinsey staff know better than seasoned bankers where AI will make money??Do they channel “the force?”
2. Talent
Upskilling employees and attracting talent!?Check!??First of all, no one in the business right now can touch AI staff because of the cost, and most in play are learning as they go.?Upscaling will be the norm because training an existing employee who knows something about banks will be easier than training a self-professed AI genius who has never built one!
3. Operating Model
McKinsey notes that given how nascent AI is, it has been centralized in many banks. I agree; this makes sense, given the difficulty of attaining talent. Then, in a stroke of genius (why they get paid the big bucks), they recommend that as the tech advances, it should be more "federated" or pushed out into business units! Are you ready to sign the contract?
4. Technology
Here, McKinsey gives no practical advice other than to say that it will be "intricately challenging." McKinsey fails to mention that as a management consultant, picking technology is not their strong point!?You’re on your own!
5. Data
I feel better knowing that McKinsey emphasizes the importance of data quality, stating that it becomes even more crucial in the context of Gen AI. Thanks!
In a survey I covered last week, 67% of risk departments reported that their data was "inconsistent or fragmented" and could not be reliably used with Gen AI.
6. Risk and Controls
Yes, GenAI has new risks like hallucinations! McKinsey's solution is to "loop in subject matter experts to validate model outputs. However, this process may not be scalable."
McKinsey wants GenAI implemented across the entire bank and to have all results hand-checked. Really?
7. Adoption and Change Management
Here, McKinsey is back in its element, offering the "buy 1 get 1 free" deal. Change management will be free if you buy the Strategic Road Map!
Tell me why I’m right or wrong by leaving a comment ?? .?
#AI #Fintech #CBDC #Innovation
??Go to ??STRAIGHT TALK?? in the comments?for more!
