HSBC executive said that artificial intelligence has many “successful theaters” in the financial field | Wilnesh News

LONDON—A growing number of financial services companies are touting the benefits of artificial intelligence in improving productivity and overall operational efficiency.

Edward J Achtner, head of generative artificial intelligence at the UK banking giant, says that despite bold claims, many companies fail to produce real results HSBC.

“Frankly, there are a lot of success stories,” Achtner said on a panel at the CogX Global Leadership Summit, a venture capital advisory firm.

“We have to be very calm about what we choose to do and where we choose to do it,” Akhtner told attendees at an event at London’s Royal Albert Hall earlier this week.

Achtner outlined how the 150-year-old lender has embraced artificial intelligence since ChatGPT, the popular AI chatbot. Microsoft– Supported startup OpenAI – popped up in November 2022.

The bank’s head of AI said the bank has more than 550 AI-related use cases across its business lines and functions, from using machine learning tools to combat money laundering and fraud to using newer generative AI systems to support knowledge workers.

One example he cited was HSBC’s partnership with an online search giant Google About using artificial intelligence technology to fight money laundering and reduce fraud. He said this cooperation has been going on for several years. The bank has also recently gotten deeper into genAI technology.

“When it comes to generative AI, we do need to clearly distinguish it from other types of AI,” Akhtner said. “We do approach the potential risks associated with generative very differently because while It represents incredible potential opportunities and productivity gains, but it also represents a different type of risk.”

Akhtner’s comments come as others in the financial services industry – particularly leaders of startups – are also expressing concern about the overall efficiency gains and cost reductions they are seeing from investments in artificial intelligence. Made a bold statement.

Buy now, pay later company Klarna said it has been using artificial intelligence to make up for lost productivity from a smaller workforce as employees leave the company.

Chief Executive Sebastian Siemiatkowski said in August that the company was implementing a company-wide hiring freeze and cutting headcount from 5,000 to 3,800 with the help of artificial intelligence, a headcount reduction of about 24%. He hopes to further reduce Klarna’s headcount to 2,000 people, but did not specify a timeframe for achieving this goal.

Klarna’s boss said the company was reducing its overall headcount amid concerns that artificial intelligence has the potential to have a “massive impact” on jobs and society.

He said in an interview with the BBC at the time: “I think politicians should already consider today whether there are other alternatives that may be effective to support people.” Simyatkovsky said that if the disruption of artificial intelligence is It would be “too simplistic” to suggest that the sexual impact will be offset by the new job opportunities created by artificial intelligence.

Oestmann of NV Ltd, a London-based firm that advises executives at venture capital and private equity firms, spoke directly about Klarna’s actions, calling headlines about AI-driven workforce cuts “unhelpful.” .

She said Klarna may have seen artificial intelligence “making them a more valuable company” and included the technology as part of the layoffs.

A Klarna spokesperson told CNBC that the results Klarna is seeing from artificial intelligence are “very real.” The spokesperson added: “We are publishing these results because we want to provide an honest and transparent understanding of genAI’s real-world impact in today’s enterprises.”

“At the end of the day,” Osterman added, banks and other financial services companies can “reinvent” themselves in the new AI era as long as people “get the right training,” and “that can only help us grow.” She suggested Financial companies “continuously learn in everything they do.”

“Make sure you’re trying these tools, make sure you make this part of your daily routine, make sure you’re curious,” she added.

Boteju, chief data and analytics officer at Lloyds Bank, pointed to what the bank sees as three main use cases for artificial intelligence: automating back-office functions (such as coding and engineering documents), “human-computer interaction” uses (such as prompts for sales staff), and Artificial intelligence-generated responses to customer queries.

Boteju stressed that Lloyds was “erring on the side of caution” in offering generative AI tools to bank customers. “We want to have the guardrails in place before we actually start extending them,” he added.

“Banks, in particular, have been using artificial intelligence and machine learning for probably 15 to 20 years,” Boteju said. Machine learning, smart automation and chatbots are things traditional lenders “have been doing for a while,” he said.

On the other hand, Lloyds Bank executives said that generative artificial intelligence is a more emerging technology. The bank is increasingly looking at how to extend the technology – but by “using our existing framework and infrastructure” rather than drastically changing it.

Boteju and Achtner’s comments are in line with previous statements by other AI leaders in financial services. ING chief analytics officer Buckir Yilmaz said in an interview with CNBC last week that artificial intelligence is unlikely to be as disruptive as companies such as Klarna have suggested in public information.

“We see the same potential as they do,” Yilmaz said in an interview in London. “It’s just that the tone of communication is a little different.” ING uses artificial intelligence primarily in its global contact centers and in-house software engineering, he said, adding.

“We don’t need to be seen as an AI-driven bank,” Yilmaz said, adding that in many processes lenders don’t even need AI to solve certain problems. “It’s a very powerful tool. It’s very disruptive. But we don’t necessarily have to say we’re going to use it as the sauce for everything.”

Johan Tjarnberg, CEO of Swedish online payments company Trustly, told CNBC earlier this week that artificial intelligence “will actually become one of the biggest technology levers in payments.” But even so, he noted that the company is more focused on “the basics of AI” than transformative changes like AI-led customer service.

One area where Trustly is looking to improve customer experience through AI is in subscriptions. The startup is developing a “smart charging mechanism” that aims to find the best time for banks to collect payments from subscription platform users based on their historical financial activity.

Tjarnberg added that Trustly has experienced nearly 5-10% efficiency gains due to the implementation of artificial intelligence within its organization.