Some useful thoughts from McKinsey.
Other FS thoughts are here:
from a business line perspective, the most promising use cases are likely to be those that require highly complex and/or exceptionally fast models. In valuation, for example, the ability to speedily identify an optimal risk-adjusted portfolio is likely to create significant competitive advantage. For loan and bond portfolios, more precise estimates of credit exposures should lead to better optimization decisions. More broadly, capital allocation across a range of corporate finance activities can be improved by insights into the size and materiality of risks, while payments and transfers can be protected through better encryption. Equity and FX trading offer significant possibilities, amid demand for ever-more accurate market risk and scenario calculations, and growing appreciation of the utility of raw computing power in smart routing and trade matching. Some large banks already expend large amounts of computational resources optimizing private interbank trading, suggesting it makes sense to seek an edge in this area. Finally, sales, marketing, and distribution can benefit from sha...
