Global banks are projected to earn $8.5 billion in investment banking fees from AI-related transactions this year. That is more than double the $3.5 billion earned the previous year.
The revenue is driven by dealmaking, including mergers and acquisitions advice, IPO underwriting, and financing for data centers and other infrastructure.
Goldman Sachs, Morgan Stanley, and JPMorgan Chase are among the banks leading the charge. Executives describe the AI boom as a “once in a multi-generation change.”
Wealth management divisions are also benefiting by attracting a new generation of millionaires created by the AI industry. Together, corporate deal flow and private wealth management have contributed to strong third-quarter earnings at several major financial institutions.