Is AI technology a threat to traditional banks?

Context

Artificial intelligence is reshaping financial services by automating tasks, improving risk assessment, and enabling new business models—capabilities that could disrupt traditional banking's competitive advantages. Banks face dual pressures: adopting AI to remain competitive while managing cybersecurity risks, regulatory uncertainty, and the potential for non-bank fintech firms to capture market share. The debate centers on whether AI represents an existential threat to banking's traditional role or simply another technological transition the industry will absorb.