“The leaders are making the unglamorous technology choices early. They are fixing data estates and core platforms so every AI investment lands on a better foundation and putting AI platforms, engineering harnesses and guardrails in place so the second, third and tenth use case ships faster than the first. They are also wiring AI into…
Tag: Digital Transformation
JPMorgan Chase, Capital One, and RBC top AI banks index
“The report notes that the fastest growth in talent clusters are in those areas required to industrialize AI applications. “AI Model Risk, Product Management, and especially, AI Enablement roles are rapidly expanding as banks invest in the people needed to accelerate deployment, redesign workflows, manage increasingly complex risks, and ensure AI investments translate into measurable…
When AI Agents Act for Customers, Banks Must Rethink Trust
“The emerging ecosystem will not be controlled by a single participant. AI agents, payment networks, banks, merchants, wallets, and technology platforms will each control different parts of the transaction. A trusted system depends on those participants being able to exchange the information necessary to manage risk while preserving room for competition and differentiation.” Read more…
Impact of AI Assistants on Margin
“Toms said AI has the potential to ‘structurally compress deposit margins’ in the longer term due to increased competition. ‘The industry would likely respond by widening lending spreads,’ he said, which would put up the cost of credit for borrowers. It is because of these concerns that banking stocks have underperformed since the launch of…
Bank of America plans to double AI budget next year
“Tapping capabilities of the bank’s AI-powered virtual assistant Erica to handle internal self-service has also led to a considerable reduction in help desk inquiries at the bank, he added. BofA has said Erica handles the work of about 11,000 people. The Charlotte, North Carolina-based lender expects to double its expense budget for AI next year, Bank…