The rapid advancement of AI technology may trap major banks into dependency on US tech giants, analysts warn.
The adoption of artificial intelligence has accelerated dramatically since the launch of ChatGPT in late 2022. The financial sector has been a primary user of these innovations, employing AI to detect fraud and money laundering.
European bank executives are increasingly concerned that the continued development and use of AI could make financial institutions overly reliant on technology providers. Bahadir Yilmaz, an analyst at ING Group NV ADR, notes that banks are likely to become more dependent on large tech companies for infrastructure and equipment in the near future. According to him, these technologies are indispensable because the computing power required for these calculations is immense. It is unrealistic for a bank to develop such technology independently.
This dependence on US tech giants poses a significant risk to the financial sector, including European banks. Financial institutions in the EU are seeking to choose their technology providers carefully, trying to avoid reliance on a single company.
Experts believe that the only way to access the immense power of AI is to partner with major tech companies. This approach is driven by the need to collect and process analytical and monitoring information that is crucial to banks.
Meanwhile, ING is testing an AI-powered chatbot that handles 2.5% of incoming customer support chats, which also highlights the growing integration of AI into banking services.
