HSBC exec says there's a lot of AI 'success theater' happening in finance
Published On Oct 9, 2024, 4:55 AM
HSBC's head of generative AI, Edward J Achtner, criticized the financial sector for engaging in 'success theater' regarding AI implementation, suggesting that many firms fail to deliver tangible improvements despite claiming significant gains in efficiency and cost reduction. He emphasized the importance of careful and clinically-minded integration of AI technologies. Companies like Klarna are reportedly benefitting from AI, but Achtner indicates a cautious approach is necessary in distinguishing between generative AI and other forms of AI already in widespread use. Overall, the discussions highlight a mixture of excitement and skepticism surrounding AI's actual capabilities in the banking sector.
Stock Forecasts
HSBC
Negative
Given the skepticism expressed about the actual productivity gains from AI compared to the bold claims of efficiency improvements within the financial sector, it suggests that companies heavily touting AI might see a correction in stock performance as investors reassess their expectations. Especially firms in the banking sector that are not seeing immediate returns from AI investments may face negative investor sentiment in the short term.
Related News
HSBC exec says there's a lot of AI 'success theater' happening in finance
Oct 9, 2024, 4:55 AM
Some financial services firms are making bold statements about AI but not seeing tangible results, according to HSBC's head of generative AI.
Banks must refund fraud in five days but losses capped at £85,000
Sep 25, 2024, 9:16 AM
Victims tricked into sending money to scammers must be refunded within five days under new rules.
'I'm trapped in a joint mortgage with my abuser'
Sep 14, 2024, 9:22 PM
An abuse survivor describes her ordeal as a charity calls for action to tackle financial abuse.