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AI Eats the Bank - The State of GenAI in Banking in 2025

  • Writer: Oliver Dlugosch
    Oliver Dlugosch
  • Feb 21
  • 4 min read

Updated: Mar 1

AI Eats the Bank

Generative AI has been making headlines in the business press for weeks, most recently with reports of astronomically high investments by tech giants and political endorsements in the US, EU, and France. However, the trend is only gradually reaching traditional industries and banks. But the facts clearly show that GenAI has the potential to fundamentally transform banking, and only agile, digital firms will emerge as the winners.

59% of bankers use GenAI every day (3) 8% of banks develop AI systematical (1)

In this article, I have compiled insights from analysts and experts to outline status and potential of GenAI in banking. It includes the latest analyses on how GenAI impacts the banking business, the connection between the megatrend of AI agents and banking, how GenAI modernizes banks' IT infrastructure, and how to drive transformation within financial institutions.


State of Gen AI in Banking: The Most Affected Industry


Currently, only 8% of banks treat GenAI as a strategic priority (1). This contrasts with various studies that identify financial institutions as the most affected industry. GenAI has its strongest impact on knowledge-based work involving analysis, decision-making, or customer interactions. Predictions indicate that banks could automate 39% of all tasks through AI (2).

30% productivity increase (3) 39% of work can be automated (2) 34% of work can be augmented (2)

GenAI’s momentum meets organizations that vary greatly in their readiness for transformation. Klarna’s GenAI-powered customer service chatbot, which has already replaced the workload of 700 employees, highlights how swiftly new players with modern infrastructures and agile cultures can act. The Swedish fintech (85 million customers), along with Nubank (110 million customers) and Revolut (50 million customers), are challengers rapidly growing due to their digital capabilities and continuously expanding into new markets and services.


Since financial products are virtual, a significant portion of banking operations relies on IT systems, processes, and customer-facing employees. Given the high relevance of data-heavy and language-based workflows, GenAI has the potential to automate 39% of all tasks and significantly augment another 34% (2) – more than in any other industry (2). Some studies suggest that GenAI could improve banks' productivity by up to 30% (3).


Banks have been leveraging AI for years in areas such as fraud detection, IT security, risk management, and asset management, often by utilizing standard solutions. In 2024, many major banks initiated their own large-scale GenAI and LLM-based developments. The most common applications so far have been cross-industry concepts such as enterprise GPTs for employee knowledge management or chatbots in customer service. As a result, 59% of all banking employees already work with GenAI daily (3).


Vertical AI Agents in Banking


Experts and AI providers predict that 2025 will be the year of a breakthrough for self-learning AI agents (4). These agents can automate complex, multi-step flows by sequentially executing tasks using specialized modules. They can research, analyze, calculate, make decisions, and initiate subsequent actions. This marks a new level of intelligence and problem-solving capability for GenAI. A significant subset of these agents consists of vertical, industry-specific AI agents.

"AI Agents Will Transform Software as We Know It"  (Satya Nadella, CEO Microsoft)

AI agents are particularly well-suited for structured banking processes. Simple to mid complex use cases, including basic customer or expert interactions, align perfectly with the concept of horizontal AI agents. These come up in areas such as onboarding, financial management, lending, investment advisory, risk assessment, and wealth management. While it remains unclear which specific applications will have the most disruptive potential for new unicorns, the advantages for neobanks are evident. AI agents allow them to offer more complex products and services without maintaining large teams.


GenAI Comes with New Technology Blueprints for Banking


Functionally, GenAI’s biggest potential within banks lies in IT (5). Beyond optimizing new developments, AI also introduces new paradigms for enterprise-wide software architecture. This addresses a critical pain point, as a Dell study found that 70% of legacy systems in large enterprises are over 20 years old, making them costly to maintain and difficult to adapt to new requirements.

70% of legacy systems in large enterprises are over 20 years old.

At the turn of the year, Microsoft CEO Satya Nadella predicted that an "army" of rapidly deployable and flexible AI agents would soon take over core business logic within IT systems. In future GenAI blueprints, these agents will access new, consolidated data layers that become a company’s key digital asset. This shift in business logic will also enable the adoption of modern platforms and standardized backend systems.


GenAI Transforms the Bank


The changes brought by GenAI are often compared to a new industrial revolution. For banks, the pressure to transform is immense, as they must leverage GenAI to strengthen core functions and streamline standard processes. Ultimately, GenAI enables all market participants to further digitize even complex financial products and services.


At the heart of these transformations are new visions, technologies, and competencies. Technically, banks need to develop new capabilities in GenAI, data management, infrastructure, enterprise architecture, and governance.

"Once banks have implemented their GenAI strategies, they will have reinvented and modernized most of their core operations." (3)

While individual project successes are already visible, banks must focus on long-term GenAI-driven transformation. This includes embedding GenAI in leadership structures, establishing new guiding principles, fostering agility, and empowering employees. Not every GenAI initiative will be a game-changer, but it should be part of a strategic roadmap that systematically builds AI capabilities aligned with the bank’s major potentials. To achieve the ultimate goal and emerge as a winner in the market upheaval driven by GenAI.


In this article, I have explored how GenAI is impacting the banking business. Next, I will delve deeper into the megatrend of AI agents at the customer interface.


My Vision 30


My Vision 30 supports banks and fintechs with strategy consulting, product design, and interim management. CEO Oliver Dlugosch worked for long time as a process and strategy consultant for banks, as well as a founder and executive in various fintechs. Together with his network, he develops new visions for digital banking with GenAI and guides their implementation with the teams. Now is the time to develop new visions, experiment with GenAI technology stacks, upskill teams, and set-up the right organization.


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