Several of them expressed worries that banks may become even more dependent on a limited number of tech companies due to the processing capacity required to build AI capabilities at a meeting of fintech executives this week in Amsterdam.
At a meeting of fintech executives this week in Amsterdam, a number of the banks voiced concerns that, because of the processing power needed to develop AI capabilities, banks will become even more dependent on a small number of tech providers.
Chief analytics officer of ING (INGA.AS), Bahadir Yilmaz, said he expected to rely “more and more going forward” on big tech companies for infrastructure and machines. Yilmaz also manages the Dutch bank’s AI activities.
However, several expressed worries that banks will become even more dependent on a limited number of tech suppliers due to the amount of processing power required to build AI capabilities during a meeting of fintech executives this week in Amsterdam.
“You will always require them since these technologies occasionally require extremely high machine power. Additionally, building this technology is not really viable for a bank,” he stated.
According to ING’s Yilmaz, banks’ reliance on a limited number of IT firms is “one of the biggest risks.” He emphasized that European banks in particular needed to make sure they could switch between alternative tech suppliers and prevent “vendor lock-in.”
According to Hannaford, the bank must notify regulators when data is moved to the cloud. This notification process could get considerably more intricate as cloud computing usage grows.
She said that banks would also have to explain to authorities the potential cost of not making use of cloud computing’s capabilities.
The main topic of discussion at the Amsterdam conference was AI.
There are “synergies” between Mistral AI’s GenAI products and financial services, according to the CEO of the French AI firm, which is regarded as France’s equivalent of OpenAI.
“We see a lot of opportunities in creating analysis and monitoring information, which is really something that bankers like to do,” Arthur Mensch stated.
ING is currently testing a 2.5% AI chatbot.
ING is in the process of testing an AI chatbot that handles 2.5 percent of incoming customer support discussions. In response to a question about when the chatbot would be able to handle at least 50% of customer support calls, Yilmaz predicted within a year.
The European Union’s securities watchdog released its first statement on artificial intelligence (AI) last week, asserting that banks and financial institutions are legally obligated to protect clients when adopting AI and cannot avoid boardroom responsibilities. It warned that the protection of retail investors will probably be significantly impacted by technology.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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