Edward J. Achtner, head of generative AI at HSBC, expressed concerns over the effectiveness of artificial intelligence within the financial sector, labeling much of what is being presented by companies as “success theater.” Speaking at the CogX Global Leadership Summit in London, Achtner emphasized that while financial institutions are eager to showcase their AI capabilities, many struggle to achieve meaningful results. He stressed the need for a more selective and strategic approach to AI deployment.
Achtner highlighted that HSBC has adopted over 550 AI use cases, spanning from machine learning tools to fight fraud and money laundering, to newer generative AI systems aiding knowledge workers. A longstanding partnership with Google on AI for fraud mitigation was also noted. However, Achtner drew a clear distinction between traditional AI applications and generative AI, citing differing risk profiles and the importance of managing these risks.
Ranil Boteju, chief data and analytics officer at Lloyds Banking Group, echoed similar sentiments during the panel discussion. He described Lloyds’ AI use cases, such as back-office automation, sales support, and AI-generated customer responses, while underlining the cautious approach the bank is taking before scaling generative AI technologies to its customers.
In contrast, the “Buy Now, Pay Later” firm Klarna has made more aggressive moves with AI. CEO Sebastian Siemiatkowski has credited AI with driving workforce reductions, with the company’s headcount falling from 5,000 to 3,800, and further cuts planned. While Siemiatkowski has been vocal about AI’s potential to reshape the workforce, other panelists, such as Nathalie Oestmann of NV Ltd., were less convinced of the benefits. Oestmann warned that workforce reductions tied to AI often coincide with corporate strategies to enhance value.
Johan Tjarnberg, CEO of Trustly, offered a more tempered view, stating that while AI is a crucial tool for the payments industry, the firm is focused on “basic” AI applications, such as improving subscription payments. He reported modest gains of 5-10% efficiency improvements from AI implementation.
Boteju and Achtner’s remarks align with other industry leaders, like Bahadir Yilmaz of ING, who questioned whether AI would be as transformative as companies like Klarna suggest. While acknowledging AI’s disruptive potential, Yilmaz emphasized that not all financial challenges require AI solutions.
Featured Image courtesy of The Star
Follow us for more updates on AI impact in finance.