McKinsey Warns Banks Could Lose $170 Billion in Profits Amid Rising Use of AI by Consumers

Banks worldwide face a potential $170 billion hit to their profits if they fail to adapt to the rapid rise of agentic AI and autonomous financial bots, according to McKinsey’s Global Banking Annual Review 2025. The consultancy warns that as consumers increasingly use AI-driven assistants to optimize savings and transfers, banks’ traditional profit pools especially from low or zero-interest deposits are at risk of erosion.​

McKinsey senior partner Pradip Patiath explained that AI automation eliminates customer inertia: “Imagine an AI agent saying, ‘You could save $2,000 a year by moving your money.’” The firm estimates about $23 trillion of the global $70 trillion consumer banking assets lie in near-zero-interest accounts. If customer adoption of AI agents continues to grow, banks could see a 9% decline in profits, pushing industry-wide returns below the cost of capital.​

While AI integration is expected to cut banking operational costs by 15–20% initially, competition will likely neutralize those gains over time. McKinsey predicts the savings will mostly benefit customers through better rates and personalized services. Banks that move early to deploy agentic AI tools, however, may enjoy a temporary first-mover advantage enhancing customer experience, optimizing deposit flows, and mitigating long-term revenue leakage.​

The report underscores that the AI revolution represents both a disruption and an opportunity: banks that rewire business models around intelligent automation could emerge leaner and more customer-centric, while those that don’t risk a structural decline in profitability.