Only 25% of banks are integrating generative AI into their core strategies, according to new research from Boston Consulting Group (BCG), placing the majority of institutions at risk of losing ground to digital-first challengers.

While many banks are still experimenting with AI in siloed pilots, the leap toward autonomous, agentic AI is already underway-set to redefine customer interactions, fraud detection, compliance, and core banking operations.

BCG’s findings highlight a growing divide in banking. Though AI has moved beyond experimentation into the realm of transformational technology, 75% of financial institutions have yet to embed it into a unified strategic approach. This delay, the report warns, may have long-term implications for competitiveness and customer retention.

The report calls out a significant disconnect: many banks are focusing AI on incremental efficiencies rather than the kinds of deep transformation needed to stay relevant. “Every day you delay is market share surrendered,” the authors warn, urging institutions to move AI projects from proof-of-concept to production with urgency.

BCG outlines four key actions to close the gap:

redefining strategy around defendable AI advantage,

investing in integrated tech and data systems,

proactively owning the regulatory agenda,

aligning talent and leadership accountability.

The research argues that banks must move swiftly to transform their operating models and capital strategies, treating AI not as an isolated tool but as the engine driving future growth.

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