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.

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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.

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