However, the huge resources required for training AI models mean that banks are likely to rely more on big tech companies for infrastructure services in the future. The hyperscale companies have been heavily investing in AI, with big cloud operators consuming supplies of Nvidia's GPU accelerators to expand their AI services. The dominance of these tech firms could potentially stifle AI market competition through a network of partnerships, investments, and agreements. The European Central Bank has warned of significant data quality issues with AI and the risk of greater dependence on tech providers.
Key takeaways:
- European banks are concerned that the growing use of AI will increase their dependence on big US tech companies, leading to new risks for the industry.
- ING chief analytics officer Bahadir Yilmaz and Deutsche Bank's corporate bank CIO Joanne Hannaford acknowledged the need for big tech's resources for AI training, but emphasized the need to avoid vendor lock-in.
- US cloud companies are facing antitrust investigations in the UK and Europe, with concerns about their dominance in the IT services marketplace and potential to stifle AI market competition.
- The European Central Bank has warned of potential data quality issues with AI, including the risk of biases and errors, and increased dependence on tech providers.