New Delhi, May 1 -- Banks are failing to unlock the full value of artificial intelligence (AI) despite heavy investments, as they continue to rely on outdated systems and processes, according to a recent report by McKinsey & Company.

The report, titled "The AI-powered bank: Rewiring for excellence in customer care," said that while AI has become a "centerpiece of investment" in banking customer operations, the expected gains are not materialising across the industry.

"As early adopters move toward broader AI implementation, the gap between leaders and laggards is no longer defined by the tools they buy, but by the operating models they build," the report noted.

According to McKinsey, the problem is not with the technology itself, but w...