AI Drives Bank Revenue Growth Amid Tight Spreads

Goldman Sachs analysts believe that artificial intelligence (AI) will have a positive impact on bank revenue through fees and efficiency gains. According to an analyst report, AI is expected to drive revenue growth for banks by generating new opportunities in advisory services, underwriting, syndication, asset management, and lending. Banks can also deploy AI internally to automate processes and reduce costs.

The report highlights that US banks are discussing AI capital expenditure more frequently than non-financial firms during earnings calls, indicating commercial opportunities from the buildout of AI infrastructure. Additionally, banks show a greater willingness to lend to companies expected to benefit from AI, as indicated by the Federal Reserve's January 2026 Senior Loan Officer Opinion Survey.

The increased use of AI has contributed to higher US dollar bank supply, contrasting with relatively flat euro investment-grade bank supply. This trend reflects opportunistic funding amid tight spreads and greater balance sheet use for prime brokerage financing and commercial and industrial lending across the AI ecosystem.