Artificial Intelligence Technology Brings Benefits, Risks to Banking: Bank of America


21 Nov 2023 11:01 AM

AI has the potential to improve productivity and enhance bank returns, the report said....

  • Bank of America (BAC) believes that artificial intelligence (AI) technology has the potential to enhance banks' efficiency.
  • However, there are also risks associated with the broad use of AI in banks, particularly in terms of security and the protection of client assets.
  • Dialogue between the industry and regulators is ongoing to address these concerns.
  • Most major banks are already using AI technology cautiously, and if it proves to be efficient, it could lead to more stable credit ratings and secure spreads.
  • However, the revenue upside from AI technology is currently less tangible.

The article presents a balanced view of the potential benefits and risks of using AI technology in banks. While it acknowledges the potential for enhanced efficiency, it also highlights concerns regarding security and the protection of client assets.

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