Transcription
COMING TOWN SHOW. WE EXPLORE HOW A.I. COULD RESHAPE DEAL MAKING, TRANSFORM COMPETITION AND REDEFINE WHO WINS IN THE FINANCIAL SECTOR. WHAT’LL IT ALL MEAN FOR JOBS IN BANKING? WE EXPLORE HOW A.I. IS REWIRING HOW BANKS HIRE. THE ROLES THAT COULD BE EMPOWERED AND THOSE THAT RISK EXTENSION. AND FIN TECH GIANT KLARNA’S CEO TELLS ME WHY HE SEES LEGACY BANKS FALLING BEHIND AS A.I. CHANGES THE RULES.
I WOULD ARGUE THE ODDS ARE PRETTY GOOD AT WINNING. THE BIG MARKET SHARE. NOW THEY ARE WAKING UP TO FINISH TECH NEVER DIED. IT WAS JUST AN EVALUATION ISSUE.
IT AFFECTS EVERYTHING. RISK, FRAUD, MARKET, CUSTOMER SERVICE. IT IS KIND OF THE TIP OF THE ICEBERG.
SO WE BRING YOU INTERVIEWS WITH SOME OF THE BIGGEST NAMES IN BANKING WITHIN INSIGHTS ON HOW ARTIFICIAL INTELLIGENCE IS RESHAPING THE SECTOR. WELCOME TO BLOOMBERG TECH EUROPE. ARTIFICIAL INTELLIGENCE IS CHANGING THE FACE OF BANKING, FROM THE TRADING FLOOR TO CUSTOMER CHAT BOTS. WHO IS LEADING THE CHARGE AND JUST HOW FAST ARE THEY MOVING? ARTIFICIAL INTELLIGENCE IS RESHAPING HOW BANKS WORK, HOW THEY INTERACT WITH CLIENTS AND HOW THEY COMPETE.
IT IS HELPING OUR CODERS. HELPING COMPLIANCE. HELPING H.R. YEARIES AND YOU HAVE A LOT OF TOP-DOWN USE CASES. I THINK GEN TECH IS WHEN WE BEGIN TO SEE THE GAME CHANGER.
TOM: IT CAN REGULARLY PERFORM TASKS WITH A USER WITHOUT SEERP VISION. THE NEXT STEP FOR MANY BANKS. THEY ARE STREAMLINING FRAUD DETECTION AND CREDIT. AUTOMATED REPORTING IS RAPIDLY BECOMING THE BACKBONE OF MODERN BANKING. HOWEVER, THE PACE OF DEVELOPMENT AND ADOPTION REMAINS UNEVEN ACROSS THE INDUSTRY. THE EVIDENT A.I. INDEX SHOWS WHO IS AHEAD. THIS YEAR’S LEADER BOARD IS AGAIN DOMINATED BY AMERICAN BANKS, WITH JPMORGAN TAKING THE TOP SPOT FOR ANOTHER YEAR. ONLY TWO EUROPEAN LENDERS, UBS AND HSBC, MAKE IT INTO THE TOP EIGHT. AND EVIDENCE SAYS THE LEAD PLAYERS ARE PULLING FURTHER AHEAD, INNOVATING AT ROUGHLY TWICE THE PACE OF THE REST. THEY ARE BANKING ON THEIR MULTIBILLION INVESTMENTS PAYING OFF WITH GAINS TO THE BOTTOM LINE AND BETTER SERVICE FOR CUSTOMERS AND CLIENTS. JPMORGAN WAS TOP OF THAT LIST. JPMORGAN IS OF COURSE THE WORLD’S BIGGEST BANK BY MARKET CAP AND THE MOST PROFITABLE IN U.S. HISTORY. IT IS ALSO A LEADER IN THE ADOPTION OF ARTIFICIAL INTELLIGENCE. HERE ARE SOME OF THE FACTS. JPMORGAN MORGAN, ALMOST $20 BILLION IN TERMS OF ITS ANNUAL TECH BUDGET. $2 BILLION SPENT ON GENERATIVE A.I. LLM SUITE IS BEING ROLLED OUT TO TENS OF THOUSANDS OF EMPLOYEES. LONG-TIME LEADER JAMIE DIMON SAYS THE TECH AFFECTS EVERYONE. THEY HAVE BEEN EMPLOYING THE TECH SINCE 2012.
IT AFFECTS EVERYTHING. RISK, FRAUD, MARKETING. IDEA GENERATION. CUSTOMER SERVICE. IT IS KIND OF THE TIP OF THE ICEBERG. SO WE ARE DEPLOYING IT. WE ASK WHAT ARE YOU DOING IN A.I.? WHAT ARE YOU DOING TO SERVE YOUR PEOPLE? WHY CAN’T YOU DO BETTER? WHAT IS SOMEBODY ELSE DOING? WE HAVE A LOT OF RULES AND REGULATIONS IN PLACE AROUND DATA AND HOW WE USE IT EITHER.
IS IT HAVE BEEN HAVING AN EFFECT ON JPMORGAN?
THAT BENEFIT, SOMEBODY CAN DO REAL DETAIL. WE DO THIS. WE SAVED THIS MONEY. SOME YOU CAN’T. IT JUST IMPROVES SERVICE. WORTH IT TO SAY WHERE IS THE MPV. WE KNOW ABOUT $2 BILLION OF SAVES. I THINK IT IS THE TIP OF THE ICEBERG. WE’RE GETTING BETTER AND BETTER AT IT. WE KNOW HOW TO DO IT. AS THE MANAGERS ARE DOING IT, THEY ARE ASKING FOR QUESTIONS. WE HAVE A SUITE. INTERNAL DATA TO DO RESEARCH AND SUNRISE REPORTS AND SCAN CONTRACTS AND DO THINGS LIKE THAT. 150,000 PEOPLE A WEEK. IT IS QUITE PRODUCTIVE.
NORMALLY YOUR EMPLOYERS ARE USING YOUR -- A.I.
IT IS JUST STARTING. THAT WILL BE DEPLOYED OVER TIME TOO. IT IS BEING USED FOR CODING. IT IS BEING USED AND PART OF IT IS GETTING YOUR MIND WORKING AROUND HOW YOU GOING TO USE THIS THING. OUR MANAGERS AND LEADERS HAVE TO DO IT.
IF YOU LOOK OUT FIVE YEARS, ARE THERE MORE JOBS IN BANKING AS A RESULT OF A.I. OR FEWER?
I THINK PEOPLE SHOULDN’T PUT THEIR HEAD IN SAND. IT IS GOING TO AFFECT JOBS. THINK EVERY APPLICATION, EVERY SERVICE YOU DO. SOME OF IT WILL BE YOU DOING THE SAME JOB, DOING A BETTER JOB AT IT. THERE WILL BE JOBS THAT IT ELIMINATES. YOU’RE BETTER OFF BEING AHEAD OF THE CURVE. WE TRAIN PEOPLE. WE TRAIN AND DEPLOY A LOT OF PEOPLE. FOR JPMORGAN, WE’RE SUCCESSFUL AND THERE WILL BE MORE JOBS BUT PROBABLY LESS JOBS IN CERTAIN FUNCTIONS.
TOM: WHEN YOU SPEND ON A.I., INFRASTRUCTURE, CHIPS, OPENAI, HYPER SCALERS. WHAT IS YOUR REACTION WHEN YOU SEE THOSE NUMBERS CROSSING? ARE YOU COMFORTABLE WITH THAT STRUCTURE AROUND A.I.?
IT IS A LOT. I’M NOT SURE IT IS ALL GOING TO BE TOTALLY SPENT. WHEN YOU LOOK AT BIG TECH THAT HAPPENS LIKE THIS. YOU LOOK AT CARS, TELEVISION, INTERNET. BIG MONEY IS SPENT. THERE ARE A LOT OF LOSERS AND WINNERS IN TOTAL, IT IS PRODUCTIVE. TAKE THE INTERNET BUBBLE. REMEMBER THAT BLEW UP? 100 COMPANIES THAT WERE WORTH $50 BILLION DISAPPEARED BUT OUT OF IT CAME FACEBOOK, YOUTUBE, GOOGLE. SO THERE WILL BE SOME REAL BIG COMPANIES AND REAL BIG SUCCESS. IT WILL WORK DESPITE THE FACT THAT NOT EVERYONE WHO INVESTED IN IT HAS A GREAT INVESTMENT RETURN.
TOM: JAMIE DIMON, JPMORGAN CHASE CHAIRMAN AND CEO SPEAKING TO ME IN LONDON EARLIER THIS WEEK. FROM ONE WALL STREET TITAN TO ANOTHER, GOLDMAN SACHS IS ALSO FAST ADAPTING A.I. THE U.S. LENDER EMPLOYS AROUND 12,000 ENGINEERS AND BUILT AN INTERNAL A.I. PLATFORM AS WELL AS DEPLOYING A GENERATIVE A.I. SYSTEM AND SOFTWARE ENGINEER. THEY RECKON ARTIFICIAL INTELLIGENCE WILL BOOST GROWTH AT THE BANK FOR INCREASES THROUGH PRODUCTIVITY AND EFFICIENCY GAINS. IT WILL LEAD TO SOME JOB LOSSES IN SOME AREAS AT GOLDMAN. I SPOKE TO CEO AND CHAIRMAN DAVID SOLOMON AT TECH WEEK.
WE’RE A PROFESSIONAL SERVICES FIRM. YOU THINK ABOUT GOLDMAN SACHS AND THE VALUES IT BRINGS TO ITS CLIENTS. VALUE AROUND THREE DIFFERENT THINGS: PEOPLE, CAPITAL AND TECHNOLOGY. IF YOU THINK ABOUT A.I., A.I. REALLY ALLOWS SMART, TALENTED, DRIVEN, SOPHISTICATED PEOPLE TO BE MORE PRODUCTIVE. TO TOUCH MORE PEOPLE. BETTER INFORMATION AT THEIR DISPOSAL. BETTER ANALYSIS. THIS IS A JOURNEY WE HAVE BEEN ON. THIS TECHNOLOGY ACCELERATES. WHEN I STARTED 42 YEARS AGO, AND I WANTED TO LOOK AT FIVE DIFFERENT COMPANIES AND THIS CAN’T HOW TO COMPARE THE TRADING OF FIVE DIFFERENT COMPANIES, I HAD TO GO TO THE LIBRARY AND GO TO MICROFICHE AND SPEND HOURS. OBVIOUSLY TODAY YOU CAN DO IT IN A FRACTION OF A SECOND SPEAKING INTO YOUR PHONE. THIS JOURNEY IS ABOUT PROVIDING TOOLS TO SUPER PRODUCTIVE PEOPLE AND GIVING THEM MORE CAPACITY TO SERVE THEIR CLIENTS AND BE MORE PRODUCTIVE IS OBVIOUS. WE HAVE BEEN WORKING ON THOSE TOOLS AS MOST ENTERPRISES HAVE. THE MORE INTERESTING THING FOR ENTERPRISES BROADLY IS THE WORLD IS UNDERPINNED BY TECHNOLOGY. CODING IS TIME CONSUMING BUT THIS TECHNOLOGY ALLOWS YOU TO CODE WITH GREATER PRODUCTIVITY AND EFFICIENCY. ONE GREAT CODER NOW WITH THE TOAST TOOLS -- YOU KNOW, REALLY HAS MASSIVE CODING CAPACITY FOR ONE CODER OPPOSED TO HAVING 10, 20 PEOPLE SIT AROUND FOR A FEW DAYS. BIG PRODUCTIVITY THERE. OF COURSE WHEN YOU THINK ABOUT OPERATIONAL SYSTEMS IN ANY BUSINESS, THE ABILITY TO ACCELERATE AUTOMATION AND DRIVE MORE PRODUCTIVITY. IT IS NOT JUST A COST EXERCISE. IT IS ACTUALLY ABOUT TAKING THAT PRODUCTIVITY AND HAVING MORE CAPACITY TO REINVEST IN YOUR GROWTH AND BUSINESS. WE’LL SPEND $6 BILLION ON HELLO TO YEAR. I WOULD LIKE TO SPEND $8 BILLION. BUT I CAN’T AFFORD IT BECAUSE I HAVE TO DELIVER RETURNS, BUT WITH THIS TECHNOLOGY, MY ABILITY TO SPEND MORE AND INVEST MORE IN GROWTH AND ACCELERATE THINGS THAT CAN GROW OUR ENTERPRISE, IT IS MORE AVAILABLE TO US.
TOM: FIVE, 10 YEARS TIME, FEWER BANKING JOBS IN TERMS OF A.I.?
I THINK THERE ARE PLACES WHERE THE NUMBER OF JOBS, ACTUAL JOBS WILL COME DOWN. THE WAY I LOOK AT IT IS I THINK WE CAN CONTINUE TO GROW GOLDMAN SACHS. I THINK WE CAN CONTINUE TO SERVE A WIDER SLICE OF CLIENTS WITH THESE TOOLS AND THESE CAPABILITIES BEING INTEGRATED. THE QUESTION, THE WAY I WOULD ANSWER THE QUESTION, IF THE FIRM WAS THE SAME SIZE AND DIDN’T GROW, WE WOULD GROW, WE WOULD OPERATE WITH FEWER PEOPLE. WE’LL END UP WITH MORE JOBS 10 YEARS FROM NOW THAN WE HAVE TODAY. JUST AS, BY THE WAY, WE HAVE IN EVERY STEP ALONG THE JOURNEY FOR THE LAST 40 YEARS, AS TECHNOLOGY HAS MADE US MORE PRODUCTIVE. I DON’T THINK IT IS DIFFERENT THIS TIME.
TOM: YOU FORESEE UNDER HEAD COUNT?
I THINK SO.
TOM: THAT OF COURSE WAS DAVID SOLOMON. COMING UP, FINTECHS ARE CHALLENGING LEGACY BANKS. WHAT DOES THAT MEAN FOR CUSTOMERS AND ALSO FOR JOBS. OUR INTERVIEW IS NEXT. THIS IS BLOOMBERG.
TOM: WELCOME BACK TO BLOOMBERG TECH EUROPE. A.I. AS WE HAVE BEEN DISCUSSING IS SHAKING UP. FAST MOVING FINTECHS AS WELL LIKE KLARNA AS THEY TARGET LEGACY LENDERS. THE BUY NOW PAY LATER COMPANY WANTS AN ALL ENCOMPASSING A.I. POWERED ASSISTANT. HOW THE DISRUPTION IS RESHAPING THE INDUSTRY, THE WORKFORCE, AND WHAT HE THINKS IS NEXT FOR BANKING.
I THINK IT COMES BACK TO THE DIVISION WE HAD AT KLARNA 10 YEARS AGO. VERY BASIC. IN THE FUTURE THERE WILL BE A DIGITAL FINANCIAL ASSISTANT THAT WILL ANALYZE YOUR SPEND. THIS IS WHERE WE BELIEVED RETAIL BANKING WAS HEADING. DON’T KNOW WHEN BUT KNOWING THAT IT WILL HAPPEN. HAS THE FUTURE. IT HAS PROFOUND IMPACT AND THE CONSEQUENCES FOR THE BANKING INDUSTRY BECAUSE TO A LARGE DEGREE BANKS TODAY DON’T NEED TO BE COMPETITIVE BECAUSE PEOPLE DON’T WANT TO SWITCH AND IT IS DIFFICULT TO SWITCH AND THEY NEED TO BRING ALL THE DATA AND OTHER STUFF. THEY DON’T NEED TO BE THAT COMPETITIVE. THEY DON’T NEED TO BE THAT GREAT. THIS WOULD MEAN IN THE FUTURE IT WOULD BE ULTRA HIGH. PEOPLE WOULD SWITCH TO WHATEVER GAVE THEM THE MOST VALUE FOR THE LEAST MONEY.
TOM: WHAT WOULD YOU SAY TO THOSE WHO WOULD SAY THE LEGACY BANKS HAVE THE DATA SETS AND RESOURCES. IN FACT, RATHER THAN LEVELING THE PLAYING FIELD WITH FINTECH, A.I. IS GOING TO GIVE A GREATER ADVANTAGE TO LEGACY BANKS BECAUSE OF THOSE FACTORS?
I HAVE ALWAYS SAID IN MY OPINION, THERE ARE THREE PLAYERS OF COMPANIES THAT CAN -- IT IS THE BIG TECH COMPANIES, GOOGLE, AMAZON, ETC. FINTECH OR BANKS. TRIED TO REINVENT THEMSELVES, BE FORWARD-LEANING, APPLY TO APPLY THE TECHNOLOGY AND SOME WOULD BE SUCCESSFUL. THERE WILL ALSO BE FINTECHS. I ARGUE COMPANIES LIKE OURSELVES, CHARLESTON AIRKS RESOLUTE AND OTHERS BECAUSE THERE ARE BANKS, WE ARE FULLY REGULATED INTO THESE. WE DON’T HAVE THE COBALT CODE RUNNING IN THE BACK MAINFRAME AND ALL THAT STUFF. WE DON’T HAVE ALL OF THOSE CHALLENGES THAT BIG LEGACY INCUMBENTS HAVE. I WOULD ARGUE THE ODDS ARE PRETTY GOOD AT WINNING A BIG MARKET SHARE. THEY WILL MANAGE TO RE-INVENT THEMSELVES. I THINK JAMIE IS ON TO SOMETHING REALLY EXCITING. HE IS TRYING TO DO IT. SOLOMON WAS TRYING WITH GOLDMAN SACHS. THE MARKET WAS THROWN OUT WHEN THE FINTECH VALUATIONS DROPPED DOWN. NOW THEY ARE WAKING UP TO FINISH TECH NEVER DIED. IT WAS JUST AN EVALUATION ISSUE. IN 2021, THE VALUATIONS DROPPED. FINTECH WAS GROWING. CUSTOMER ADOPTION WAS GROWING. NOW IT IS GOING TO COME BACK. YOU SEE NEW BANKS. YOU SEE KLARNA. YOU’RE GOING TO BE LIKE WOW. ACTUALLY THIS IS HAPPENING.
TOM: I KNOW YOU THINK DEEPLY ABOUT THIS. HOW DO YOU SEE FINANCIAL SERVICES, THE WORKFORCE WHEN IT COMES TO FINANCIAL SERVICES CHANGING IN THE NEXT FIVE TO 10 YEARS?
I FOR ONE HAVE BEEN TRYING TO BE A LITTLE BIT MORE HONEST ABOUT THIS. I FEEL LIKE A LOT OF MY TECH -- ARE BEING SLIGHTLY DEGREES, ON THIS TOPIC. THERE IS A MASSIVE SHIFT. NOT JUST IN BANKING BUT SOCIETY AT LARGE. THERE ARE 8,000 PEOPLE IN BRUSSELS TO WORK AS TRANSLATORS AND I WOULD ARGUE MOST OF THAT CAN BE DONE BY A.I. TODAY ALREADY EVEN THOUGH SOME QUALITY ASSURANCE AND SO FORTH WOULD STILL BE VALUABLE BUT WE DON’T NEED AS MUCH AS WE DID. WE HAVE TO FIGURE OUT WHAT ARE WE GOING TO DO? YES, NEW JOBS WILL BE CREATED. IN THE SHORT-TERM THAT DOESN’T HELP THE BRUSSELS TRANSLATOR. HE IS NOT GOING TO BECOME AN INFLUENCER TOMORROW. FOR US AS A COMPANY, WE SEE WE HAVE INCREASED OUR REVENUE FROM 400K TO OVER MILLION IN THE LAST TWO YEARS. WE HAVE NOT HIRED. WE HAVE A LITTLE BIT HIRED SMALL RECRUITMENT BUT WE HAVE SHRUNK INTEREST FROM 74,300 TO 3,000 NOW. WE ARE SIMPLY NOT RECRUITING WHICH MEANS WE CAN AVOID DOING LAYOFFS AND WE HAVE TAKEN A LOT OF SAVED INFORMATION PAYROLL COSTS AND REINVESTED IT. WHICH MEANS THEY ARE SEEING A HUGE BENEFIT FROM US APPLYING A.I. INTERNALLY. I THINK THERE IS -- HOW YOU CAN MAKE THIS WORK FROM A SOCIETY PERSPECTIVE AND COMPANY PERSPECTIVE BUT IN THE END OUR JOB IS TO DRIVE AS MUCH VALUE AS POSSIBLE TO OUR CUSTOMERS. WE NEED TO USE THESE TECHNOLOGIES TO ACCOMPLISH THAT. IN GENERAL THERE WILL BE IMPLICATIONS FOR A LOT OF KNOWLEDGE-BASED WORK.
TOM: BEFORE YOU GO. HOW MUCH AND TO WHAT EXTENT ARE YOU USING PERSONALLY A.I. IN YOUR OWN LIFE MAYBE OUTSIDE OF WORK?
I USE IT ALL THE TIME. ACTUALLY SINCE MAY WHAT I PICKED UP WAS VIBE CODING. I’M NOT AN ENGINEER BY TRAINING. IT HAS BEEN MIND BLOWING TO ME. IT HAS BEEN FANTASTIC. I SPEND -- MY WIFE IS COMPLAINING. WHEN THE KIDS GO TO SLEEP, HEY, CAN I JUST GO AND VIBE CODE A LITTLE BIT? SHE IS NOT TOO HAPPY WITH ME CURRENTLY. IT IS SO INTRIGUING. IT IS SO FANTASTIC TO LEARN THESE TECHNOLOGY. PEOPLE SHOULD NOT BE AFRAID OF TECHNOLOGY. IF YOU’RE WORRIED ABOUT A TECHNOLOGY, EMBRACE IT. LEARN IT. EDUCATE YOURSELF. FIND OUT HOW TO UTILIZE IT AND YOU KNOW, THEN YOU’LL BE MORE -- LESS WORRIED BECAUSE YOU KNOW WHAT YOU’RE FACING. IT IS THE THINGS THAT YOU DON’T KNOW THAT PEOPLE GET NERVOUS ABOUT.
TOM: OK OK. CEO OF KLARNA. SPEAKING TO ME ABOUT THE IMPACT ON JOBS AND HOW THAT POSITIONING AND BUILDING A.I. INTO THEIR BUSINESS. COMING UP, THE A.I. RACE IS SPEEDING UP. WE HAVE DEMONSTRATED THAT WITH U.S. LENDERS AS WELL DOMINATING THE GLOBAL LEADER BOARD FOR ADOPTION. U.S. LENDERS. THE CEO BEHIND THE A.I. BANKING INDEX GIVES US THE LATEST ON THE LEADERS AND THE LIKELY LOSERS. THAT IS NEXT. THIS IS BLOOMBERG.
TOM: WELCOME BACK TO BLOOMBERG TECH EUROPE. NOW EVIDENT A.I. BANK INDEX RANKS HOW QUICKLY AND HOW EFFECTIVELY THE WORLD’S TOP BANKS ARE ADOPTING ARTIFICIAL INTELLIGENCE. THIS YEAR JPMORGAN EXTENDS ITS LEAD WITH U.S. BANKS DOMINATING THE TOP 10. WHAT IS DRIVING THE DIVIDE AND WHAT IS AT STAKE FOR THOSE FALLING BEHIND? I SAT DOWN WITH AN EXCLUSIVE INTERVIEW TO GET THE INSIDE STORY.
JPMORGAN IS IN THE LEAD ONCE AGAIN. AND NOT ONLY THAT, IT’S ALSO JUMPED EVEN FURTHER FORWARD THAN THE REST OF THE BANKS SO WE’RE REALLY SEEING THIS BIFURCATION BETWEEN THE LEADING BANKS AND THE LAGGING BANKS BUT WHAT JPMORGAN SPECIFICALLY DID IS START REALLY EARLY. JAMIE DIMON FAMOUS FOR SAYING THAT THE BANK IS A.I. FOCUSED ORGANIZATION ALL THE WAY BACK IN 2017, 2018. REALLY LEANED HEAVILY INTO THAT. THOUGHT ABOUT THE BANK AS A TECH COMPANY, ESTABLISHED AN A.I. RESEARCH LAB. REALLY RETHOUGHT THE OPERATING MODEL, THE TALENT THAT IT NEEDED TO ATTRACT IN ORDER TO SHIFT THE BANK FROM A TRADITIONAL LEGACY BANK INTO AN A.I. FIRST COMPANY.
TOM: WHAT DO YOU TAKE FROM THE FACT THAT THE MAJORITY OF THE BANKS IN THE TOP 10 ARE U.S. LENDERS?
THERE ARE A COUPLE OF REASONS FOR THAT I THINK. FIRST OF ALL THEY STARTED EARLIER. WHAT THEY HAVE AS CHARACTERISTICS THAT THEY SHARE IS THEY STARTED EARLY. THEY ARE ALSO IN AN ENVIRONMENT WHERE THERE IS ACCESS TO A GREAT TALENT POOL. THIS PROXIMITY TO THE TECH INDUSTRY. THERE IS PROXIMITY TO THE LEARNINGS AND ALSO MIND SET OF EXPERIMENTATION AND INNOVATION MIND SET THAT IS UNIQUE FOR THE U.S. REALLY.
TOM: IS EUROPE AND THE U.K., ARE WE SIGNIFICANTLY BEHIND? HSBC IS IN THE MIX. UBS IS THERE IN TOP 10. SHOULD WE BE CONCERNED ABOUT THE ADOPTION RATES IN THE U.K.?
I WOULD SAY IN THE U.K. THERE IS MAYBE A LITTLE BIT OF A LACK OF FOCUS OF WHAT IT MEANS FOR CREATING THE BEST ENVIRONMENT FOR A.I. ADOPTION. YOU REALLY NEED A STRONG TALENT POOL. THERE IS A GREAT START-UP COMMUNITY IN U.K. BUT THEY DISAPPEAR AND THEY GO TO THE U.S. WHEN THEY REACH A CERTAIN SIZE SO THERE ISN’T THE SAME KIND PROXIMITY TO THE TECHNOLOGY THAT IS PARTICULARLY CONDUCIVE FOR A.I. ADOPTION.
TOM: IN TERMS OF JOBS IN BANKING INDUSTRY, YOU PROJECT OUT 10 YEARS, WILL THERE BE MORE PEOPLE WORKING IN BANKS OR FEWER?
IT IS GOING TO BE CONSOLIDATED IN MY VIEW. THE BANKS THAT ARE HIRING THE MOST A.I. TALENT BUT ALSO HIRING THE MOST GENERALLY SPEAKING BECAUSE THEY ARE GROWING THEIR MARKET SHARE. THEIR TOOLS FOR THEIR COMMERCE IN CHATBOTS ARE MORE SEAMLESS AND BETTER FOR THEIR CLIENT AND SO FRICTIONLESS. NOT COMPLETELY BUT GETTING THERE GO. THAT GROWTH OF MARKET SHARE IS GOING TO MEAN THAT YOU CAN’T -- YOU’RE ALSO GOING TO NEED TO HIRE NOT JUST A.I. TALENT BUT ALSO A LOT OF OTHER, YOU KNOW, ANALYSTS AND MARKETING PEOPLE AND H.R. PEOPLE, EVEN IF A.I. IS GOING TO TOUCH UPON ALL OF THOSE AREAS. THE AREA WHERE THE -- WHEN WE’RE TALKING ABOUT JOB LOSS, THERE IS ABSOLUTELY RIGHT NOW WE CAN SEE THERE IS A LOWER INTAKE OF PEOPLE IN THE BANKS. WHAT PEOPLE FORGET IS LOOKING AT ALL THE JOBS THAT HAVE BEEN CREATED BECAUSE OF GEN A.I. ALSO.
TOM: NOW THAT IS IT FOR OUR A.I. BANKING SPECIAL. NEXT MONTH, WE’RE GOING TO DIVE INTO HOW A.I. HAS UPENDED THE INDUSTRY. SOME KEY PLAYERS IN THE SPACE. INCLUDING THE CO-CEO OF HELSING. THE MANAGING DIRECTOR OF GENERAL CATALYST, SOMEONE WHO HAS BEEN FRONT AND CENTER IN TERMS OF INVESTING AROUND DEFENSE IN PARTICULAR SOVEREIGN DEFENSE. THE OPENING TRADE IS UP NEXT. THIS IS BLOOMBERG.