S&P: AI Adoption Success Becomes Critical for Banks' Credit Ratings
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S&P Global Ratings said the impact of banks' use of AI on their credit ratings will grow more significant over the next few years. In a report released on the 21st, it noted that the maturity of AI strategies and the strength of governance frameworks will separate the winners from the losers among financial institutions. A survey of about 179 financial institutions worldwide conducted in June projected that AI-driven cost savings will reach up to 4% this year and expand to 6-8% by 2028. At present, about 84% said they use AI for support operations and automation, while fewer than one-third said they use AI to develop new products and services, citing regulatory and reputational risks. Miriam Fernandez, head of AI research and adoption, said the ultimate impact on creditworthiness depends not on whether AI is adopted, but on whether institutions can turn cost efficiencies and additional revenue into sustained profitability improvements while maintaining sound risk management, generating a competitive advantage over peers.