AI Maturity In Banking May 2025 Preface Holly BriedisColin Fleming AI-powered banks have the edge The AI race is on Rapid change brings challenges AI maturity is a fast-moving target 10pts Seizing AI opportunities Banks are seeing dividends from AI 87% 8.4% Banks cite multiple AI use cases across the value chain Analyzing customer behavior Personalized recommendations Demand-based pricing Front office Cybersecurity Fraud prevention detection Risk management Middle office Operations IT management Accounting and finance Back office Agentic AI moves center stage 34% 34% 33% Agentic AI use cases that banks are piloting or have implemented Commonwealth Bank of Australia uses agentic AI to resolve credit-card payment disputes. The solution feeds customer queries to a large language model. An AI agent then assesses and addresses the issues in minutes rather than a couple of days. 35% Pacesetters lead the way Pacesetters do it differently Larger banks have an AI edge Pacesetters drive greater returns from AI Pacesetters saw higher margin growth from AI last year 10.9% 7.8% Pacesetters outperform others in achieving target outcomes 2.13x 1.85x 1.78x 1.40x Pacesetters lead with an innovation mindset Staying at the forefront of innovation Connecting the dots Pacesetters prefer platforms 52% 63%