Banks are under growing pressure to modernize decades-old core systems, and artificial intelligence is becoming the tool of choice to do it without a full rip-and-replace. From automated reconciliation to real-time fraud scoring, AI is being layered onto legacy infrastructure to extend its life while improving speed and accuracy.
Digital-first neobanks have led the way, but traditional institutions are catching up quickly, piloting AI copilots for compliance teams and customer service agents. The next few years will likely determine which banks treat AI as a bolt-on feature versus a core part of their infrastructure strategy.