New Delhi, Oct. 27 -- Agentic artificial intelligence (AI) could reduce the time banks spend on know-your-customer (KYC) processes by 30 to 70 per cent, improving efficiency in financial-crime prevention, but high human oversight costs and challenges related to governance and accuracy continue to hinder its wider adoption, according to a report by McKinsey & Company.

The report noted that banks "often assign 10 to 15 percent of employees to know-your-customer (KYC) and anti-moneylaundering (AML) activities alone." Now institutions are now turning to agentic AI."

However, financial institutions often lack adequate metrics to assess AI reasoning and agent behaviour, despite such evaluations being relatively inexpensive as they do not requ...