EU Banks Rely Heavily on US Big Tech Firms

June 9, 2024

The increasing use of artificial intelligence (AI) in financial services has raised concerns among European banking executives about their reliance on big US tech firms. The need for massive computing power to develop AI capabilities means banks will likely rely more heavily on these companies, creating new risks for the industry. Regulators are worried that problems at a single cloud computing company could bring down services across many financial institutions. Banks such as ING and Deutsche Bank are already testing AI chatbots and expect to see significant growth in their use. The European Union’s securities watchdog has warned banks and investment firms of their legal obligation to protect customers when using AI.