Wall Street’s biggest banks want to ride the AI wave without getting caught in its undertow, as the promise of a lucrative infrastructure boom collides with questions over returns and new security threats.
\n\nExecutives at the largest US banks this week discussed the risks of AI agents acting on customers’ behalf and the uncertainty surrounding demand for the capital and computing power needed to fuel the technology’s rapid growth.
\n\n”While we are proud of the privileged position we play in the AI investment cycle, no one knows how the demands for capital and compute will evolve as the broader AI ecosystem matures,” Goldman CEO David Solomon said on a call with analysts.
\n\n”That will only become clearer as technology and markets continue to develop. This uncertainty reinforces the importance of remaining vigilant around the types of activity we finance and how we manage risk.”
\n\nCitigroup CEO Jane Fraser does not believe that higher rates will slow down the investment in the AI infrastructure. ”We’re not seeing a slowdown in investment in the broader AI ecosystem. There’s simply not enough compute,” she said, referring to the processing power needed to develop and run AI models, supported by chips and data centers.
Original source: https://www.cnbctv18.com/technology/
