Euro banks worry AI will increase their dependence on US big tech

European banks are concerned that growing use of AI will serve to increase their dependence on the big US tech companies and lead to fresh risks for the industry. The AI craze has seen organizations of all kinds rush to implement the technology, or at least evaluate how it might be employed to deliver an advantage in their …

[Like a badger]

Maybe you don't need it anyway?

In their rush to talk self-importantly about the benefits of AI and the dependence that will create on US companies, the banks seem to be missing the important question of what useful, enduring benefits they really think they're going to get. There's only a rump of the branch networks left, those jobs have gone. You've automated and offshored all the transactional stuff so any benefits of further automation will be a very shallow pool of cost. And core banking functions such as risky lending, de-banking people you don't like, mis-selling, rate rigging, market fixing, and the like, they all require a few humans to plan and execute.

[Anonymous Coward]

Re: Maybe you don't need it anyway?

Minus the last line, that's what I came to say - why, oh why, would banking need "AI"? Transactions had better not have an "AI" interpreting them. Balance queries should be a database lookup, not "AI". Maybe, possibly, "AI" could be used for IVR, but only to analyze the input to figure out what the customer is asking for - the output had better be hardcoded (no "AI" interpretation, so it can't get it wrong). And conventional IVR does an ok job of that already, without the mistakes guaranteed with "AI".

("AI" in quotes because it's 100% A and no I.)

[Anonymous Coward]

Old infrastructure is a bigger concern

Perhaps banks should be more concerned that a lot of the infrastructure they're using is decades old.

Coupled with the fact the people who developed it are either retired or dead.

Maybe we have more pressing matters to address than whether AI can solve problems that don't really need solving. Like making sure banking infrastructure carries on working and the relevant knowledge is being disseminated to the people who will actually be there to help keep it that way.

[Ken G]

Re: Old infrastructure is a bigger concern

People are thinking about that - with a coating of GenAI on the top.

In the last year or so I'm hearing about offerings to analyse older code to extract business rules and/or port it to newer languages (using AI tools).

[Zibob]

This is globalisation

This is what you fuckers wanted.

I'm absolutely sick and tired of every fucking company playing a "woe is me" micro field when they are getting exactly what they wanted and worked for years to set up.

And everyone happily parrots their bullshit too. News is a joke and just a mouthpiece for corporate whataboutism.

This article is a waste of everyones involved time, mine included.

[Ken G]

Re: This is globalisation

I've got nothing better to do right now.

[Pascal Monett]

Euro banks shouldn't even be asking the question

I was frankly appalled when I heard that European banks were considering using The Cloud^TM.

The American Could.

What the fuck were you thinking ?!?

[Catkin]

Re: Euro banks shouldn't even be asking the question

Probably "I can make short term savings and deflect liability in the event of security failures."

[ecofeco]

Oh ho!

So it's not all pump and dump, after all. Advanced international economic warfare is the end game!

[An_Old_Dog]

Then Don't Use it, Stupid!

"If I buy a foreign-made tech-thing, that increases my dependence on foreign tech. What should I do?" /sarcasm

[Charles Bu]

Out of their league 2: Take it or leave it

US big tech drives Germany and France mad with how much it couldn't care less about them.