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Can banks skip digital transformation and leap straight to AI transformation?

McKinsey frame: AI Transformation (AX) vs. Digital Transformation (DX). Traditional DX modernizes legacy systems, data pipelines, APIs. AX assumes those foundations exist and focuses on deploying machine learning and autonomous decision-making. Question: must you finish DX first, or can you parallelize?

WHY IT MATTERS

BFSI executives under board pressure to deliver AI ROI quickly may try cutting DX corners. Most fail: fragmented data and weak APIs cripple even best AI models. DX and AX are sequential for 80% of banks; parallel only for rare greenfield fintechs.

Source: McKinsey (Cited) · 2026-08-16

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Can banks skip digital transformation and leap straight to AI transformation? — ath — AITechHive