Banks’ AI investments aren’t boosting your savings. Here’s how to take control

Banks have been loudly touting their multi-billion-dollar investments in artificial intelligence as a breakthrough for consumers. CEOs speak at conferences about AI-powered personalization. Marketing departments promise smarter, more tailored financial services. Annual reports highlight massive technology budgets.

But there’s a disconnect between the AI hype and what’s actually happening in your savings account. While banks are spending billions on AI, the impact on most retail banking customers is limited. Banks are using AI largely for security and operations, but most savers aren’t seeing that translate into higher interest rates, more services or improved features.

It’s time for savers to understand what’s really happening and take control of their finances.

Where banks are actually spending their AI budgets

Here’s what banks don’t want to admit: AI is primarily being deployed to reduce their costs and risks, not to increase what they pay you. Much of the AI investment in banking is directed at internal processes, with fraud detection, compliance and risk management topping the list.

More than 50 percent of banks “fail to utilize AI-driven analytics effectively to enhance customer loyalty and streamline operations,” according to a recent report from technology consulting firm AlphaBOLD. This gap is largely due to fragmented data systems, legacy infrastructure and a lack of integrated AI strategies.

For consumers, this means that AI is making banks more secure and efficient, but not necessarily more generous. The technology is generally being used to protect the institution, not to offer higher interest rates or tailored financial benefits to bank customers.

“Banks continue to prioritize regulatory compliance, risk management and fraud prevention when deploying AI, often at the expense of customer-centric innovations like personalized financial advice or dynamic rate offerings,” AlphaBOLD’s report notes.

Contrast that with the major strides already taking place in investment and wealth management. AI-driven platforms analyze data in real time, optimize asset allocation and tailor recommendations to individual risk profiles. Asset managers are automating portfolio strategies, refining risk assessments and enabling personalized financial advice for larger customers.

The obstacles to customer-focused AI

There are several reasons banks have struggled to use AI in ways that benefit everyday savers.

Legacy technology challenges

Many banks still rely on systems built decades ago, which are difficult to integrate with modern AI tools. This tends to leave out most of the operations that oversee customers’ accounts.

Customer information is often stored in separate systems, making it difficult for AI to create a complete picture of a customer’s needs or habits. This fragmentation limits the effectiveness of any personalization efforts, even for banks that want to offer them, and that personalization would be key to offering higher rates.

When your checking account data lives in one system, your savings information in another, and your loan details in a third, AI can’t easily connect the dots to provide meaningful insights or recommendations that could get you a better deal on your savings.

Regulatory pressures

Banks face strict oversight and heavy penalties for mistakes, so they tend to use AI to shore up compliance and security rather than innovate on customer offerings. The regulatory environment rewards caution over innovation, especially when it comes to customer-facing applications.

Even though banks could conceivably use AI to boost rates by analyzing customers’ data and account histories, at the moment this would be difficult and could force banks to spend more money rather than save it.

Customer security concerns

Despite the marketing buzz, most consumers remain skeptical about AI in banking.

Accenture’s 2025 global banking survey found that 53 percent of banking customers had privacy concerns, while 58 percent are concerned about data security and the risk of hacking, especially as AI is used to power new products and services.

A recent J.D. Power survey also found that fewer than 30 percent of customers trust AI chatbots for financial advice. Less than half believe AI will improve their personal finances.

While banks have spent a lot of time and energy talking about investing in AI, they haven’t let customers behind the curtain, says Ila Ghosh, J.D. Power’s senior director of financial services intelligence.

What consumers can do now

While banks work to modernize their approach to AI, savers shouldn’t wait around. Here are steps you can take now to make sure you are getting the best deal:

1. Compare rates actively and regularly. Online banks and fintechs often offer higher yields and more innovative features than traditional banks. Compare today’s best high-yield savings accounts.
2. Ask for details about AI use. If your bank advertises AI-powered services, ask how these affect your account, your data and your rates.
3. Seek institutions with clear AI policies. Choose institutions that are open about how they use AI and protect customer data. As David Donovan of digital transformation and consulting company Publicis Sapient puts it, “Customers deserve to know exactly how their data is being used, how these AI-powered decisions are being made and what safeguards are in place.”
4. Monitor your accounts. Use security alerts and check your statements regularly for unusual activity.
5. Stay informed. Follow updates from regulators and consumer advocates as AI in banking continues to evolve. Understanding the landscape helps you make better decisions about where to keep your money.

The bottom line

AI has the potential to transform banking, but for now, the benefits mostly flow to the institutions themselves.

AI has improved some aspects of banking. Fraud detection is faster and more accurate. Loan approvals can be processed more quickly. Chatbots can answer basic questions and handle simple transactions.

But when it comes to helping savers earn more or get better advice, the results are limited. Most banks continue to offer standard rates and generic products, regardless of what AI could theoretically offer.

Don’t wait for banks to use AI for your benefit. Take control by shopping for better rates, demanding transparency about AI use, and moving your money to institutions that prioritize customer outcomes over internal efficiency. The technology exists to provide better financial services — you just need to find institutions willing to use it for your advantage.