Banks seek to rein in soaring AI agent costs, McKinsey says
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Banks worldwide are trying to curb the soaring cost of AI agents, McKinsey said on November 10.
- ✓Spending on tokens could reach 20% of labor costs.
- ✓"Those models are ineffective when AI agents are working, because they communicate with each other," said Vik Sohoni.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
NEW YORK, Nov 10 (Reuters) - Banks worldwide are trying to curb the soaring cost of AI agents as spending on the tokens that power them could easily reach 20% of total labor costs, according to McKinsey's Global Banking Annual Review.
Responsibility for controlling AI-related spending has shifted to new teams that some banks call AI FinOps. Initially, banks sought to rein in costs with systems that directed employees to different AI models based on the complexity of their queries.
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"But those models are ineffective when AI agents are working, because they communicate with each other and tokens quickly add up," said Vik Sohoni, a senior partner at McKinsey and one of the report's authors, in an interview with Reuters.
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