What a global ranking of banks on AI prowess says about the tech’s ‘flywheel’ effect
“This is evidence of AI’s “flywheel” effects. And it’s why those companies that have wanted to take a wait-and-see approach to the AI boom, wary of reports about how difficult it is to generate return on investment from AI projects, may be making a big mistake. It can take time and significant investment for AI projects to begin to pay off, but once they do, these AI deployments can create a self-perpetuating and accelerating cycle of benefits. That flywheel effect means that it can be impossible for late-movers to ever close the gap.”
Overcoming modern banking challenges with AI adoption
- “AI innovation: Forty-four percent of organizations consider developing new AI-driven products, services, or features a critical priority.
- Adoption stages: Sixty-nine percent of firms are in early stages of generative AI adoption, yet seventy-seven percent consider themselves industry leaders in this area.
- Data challenges: Many organizations underestimate the importance of data governance and quality in successful AI implementation.”
Intesa Sanpaolo to cut 9,000 jobs in AI-fueled push
“Intesa Sanpaolo is planning to cut 9,000 jobs by 2027 — roughly 10% of its workforce — and hire 3,500 “young people” to support greater use of artificial intelligence and further digitalization, the bank said Wednesday…The moves are expected to save the bank €500 million ($540 million) per year in personnel expenses, beginning in 2028, Intesa said, adding that the bank will book a charge of around €350 million, net of tax, in this year’s fourth quarter.”
Swift to Launch AI Fraud Detection for Global Banking in 2025
“The new system will analyze pseudonymized data from billions of annual transactions on Swift’s network to flag suspicious activity in real-time, building upon Swift’s Payment Controls Service currently used by small and medium-sized financial institutions. The rollout follows successful pilots with banks across Europe, North America, Asia and the Middle East, and it comes as industry estimates put financial services fraud losses at $485 billion in 2023.”
Interface.ai Raises $30M in First External Funding Round, to Expand AI Banking Solutions
“Interface.ai, a provider of AI-powered customer service solutions for banks and credit unions, has secured $30 million in its first-ever external funding round. The investment, led by Avataar Venture Partners, comprises $20 million in equity and $10 million in debt financing.”
AI Patents at BofA Increase 94% Since 2022
“Bank of America is dedicated to the use of innovative technology to best meet the needs of its clients and employees. This commitment to innovation has led to a 94% increase in artificial intelligence(AI) and machine learning (ML) granted patents and pending patent applications since 2022. Today, the company has nearly 1,100 AI and ML patents and pending applications in its portfolio, with more than half having already been granted.”