Banks see risk in dependence on Big Tech’s AI capabilities

The growing dependence of banks on Big Tech companies for artificial intelligence (AI) capabilities is reportedly raising concerns about new risks.

This dependency of the financial industry on a limited number of tech companies is seen as one of the biggest risks for banks, European banking executives told Reuters in a report posted Friday (June 7).

The use of AI in financial services has gained significant traction since the launch of OpenAI’s ChatGPT in late 2022, building upon banks’ existing deployment of AI for tasks like fraud detection and money laundering, according to the report.

However, the amount of computing power required to develop AI capabilities has led banks to increasingly rely on a small number of tech providers. Bahadir Yilmaz, chief analytics officer at ING, told Reuters that banks need to have the ability to switch between different tech providers and avoid being locked into a single vendor.


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