Person
1 episodes · 18 quoted claims
Oliver Bussmann estimates that roughly half of financial institutions are using AI agents in some environment, most of them as proofs of concept.
“Roughly 50% of financial institutions are already using uh agents in there in an environment. I think most of them are proof of concept.”
Bussmann describes European AI regulation as restrictive and based on classifying use cases by risk, with significant fines for companies.
“the European regulation is very restrictive, um, and very risk-based classification, um, uh, controls.”
Bussmann says the US takes the opposite approach to the EU, assuming companies will handle safety audits themselves, which lowers administrative overhead.
“we see the opposite trend in the US, for example, that, uh, uh, assume that, you know, uh, companies will take care about the safety audit”
Bussmann says audit firms PwC and Deloitte are already bringing their own AI agents into auditing and reporting.
“audit firms like, uh, PWC already, and and Deloitte, they're bringing their own agent now into auditing the end reporting also”
Bussmann says KPMG published a research report on AI in financial services that contained hallucinated, wrong data, and financial institutions pushed back.
“KPMG a couple of weeks ago was on the pressure, they put a research report out there and about usage of AI in financial services”
Bussmann says JP Morgan announced it is building its own AI infrastructure with a chip provider other than Nvidia, which he sees as an exception among banks.
“It's only one bank, JP Morgan announced that they are also building their own infrastructure with, uh, chip provider, then not the typical Nvidia, et cetera.”
Bussmann says building own AI hardware requires scale such as JP Morgan's, with US banks of that size having IT budgets above $10 billion a year.
“only large bank with, you know, JP Morgan, US banks are usually, after, you know, among above 10 billion, uh, dollars of budget, IT budget per year”
Bussmann says job advertisements for junior software engineers have dropped by about 40% over the last couple of years.
“demand for junior software engineers, uh, uh, dropping, you know, the job advertisement are down by 40%.”
Bussmann says Salesforce announced it is still hiring graduates, even more than the previous year, particularly those with AI backgrounds.
“I think Salesforce announced that they are still hiring even more than last year.”
Bussmann says the legal industry now uses large language models customized by jurisdiction, reducing the work needed to draft and review contracts.
“Legal industry is now using, uh, large language models, totally customized for their jurisdiction.”
Bussmann says consulting firms' valuations are down 40% or more this year as AI changes their business model.
“You see, consulting firms also, their valuation is down this year, forty and more percent.”
Bussmann says agentic payments being developed by Visa and Mastercard are probably the first agent-to-agent use case, and they depend on verifying that the agent is legitimate.
“I think the the, uh, agentic payment topic that Visa and Mastercard working is is the maybe the first one.”
Bussmann says the European Commission is working on digital identities, which he sees as needed before digital twins or agents can transact at scale.
“I know that the European, uh, commission is working on certain governments on on those kind of digital identities”
Bussmann says shared know-your-client utilities have been discussed for ten to fifteen years and mostly failed for lack of critical mass of sponsors.
“most of these, um, utility setups failed because there was not enough critical mass, um, sponsoring this kind of development.”
Bussmann says blockchain can give a tamper-proof record of decisions, adding to auditability beyond ordinary logging.
“you can go to the next, uh, level of maturity, saying, you know, I'm using blockchain, that nobody can even correct, uh, um, uh, transaction”
Bussmann says the European Central Bank, his regulator as a supervisory board member, tells him to follow existing rules such as the European AI regulation and DORA for AI.
“I talk to the to the ECB as my regulator, uh, they're telling me make sure that, you know, for this kind of topic, the existing regulation, like the European AI, the Dora,”
Bussmann says bank board agendas have shifted in recent years toward operational risk, which is largely about technology and operations.
“the board agenda focus has shifted the last couple of years into much more operational risk.”
Bussmann says robo-advisors did not replace human advisors, because clients still prefer to talk to a person before executing financial decisions.
“People like to talk to a bank at the end, say, you know, is it a good decision?”