The boom in artificial intelligence will increase banks’ dependence on big U.S. tech firms, creating new risks for the industry, European banking executives said – according to Reuters.
Excitement around using artificial intelligence (AI) in financial services – widely used already for detecting fraud and money-laundering – has soared since the launch of OpenAI’s viral chatbot ChatGPT in late 2022 as banks examine ways to deploy generative AI.
But at a gathering of fintech executives in Amsterdam last week, some expressed concerns that the amount of computing power needed to develop AI capabilities would make banks rely even more on small number of tech providers.
ING’s chief analytics officer, Bahadir Yilmaz, who is in charge of the Dutch bank’s AI work, told Reuters he expected to rely on Big Tech companies „more and more going forward”, for infrastructure and machinery.
„You will always need them because sometimes the machine power that is needed for these technologies is huge. It’s also not really feasible for a bank to build this tech,” he said.
Banks’ dependency on a small number of tech companies was „one of the biggest risks”, ING’s Yilmaz said, emphasising that European banks in particular needed to ensure they could move between different tech providers and avoid what he called „vendor lock-in”.
ING is testing an AI chatbot currently used for 2.5% of incoming customer service chats. Asked how long it would be until the chatbot could handle half or more of customer service conversations, Yilmaz said within a year.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
