Bank investors should beware of AI hype, says Macquarie
The predicted cost benefits from artificial learning are overstated, according to Macquarie analysts, while regulators are also adding notes of caution to the most ambitious plans.
Macquarie Research has warned bank investors not to get caught up in the hype around artificial intelligence, at least not as far as bank shares go. And regulators agree, as far as the hype goes.
In a note to clients following its Macquarie Banking Symposium — which focused on technology, innovation and AI — its analysts said “we see limited scope for banks to deliver cost benefits over the next few years stemming from AI and see risks of higher costs in the short term”.
“While productivity and customer outcomes should improve, benefits are unlikely to be sustained over the long term to support profits,” they said.
That view reflects findings from a new global survey by Capgemini, which found that while optimism around AI in financial services was high, it was more subdued than for any other major sector and had not grown as quickly over the last 12 months.
