Moody's said on Sunday that the rush into artificial intelligence is leaving big banks dependent on a small number of technology suppliers. The agency still expects the sector to gain from the technology, but flags heavy investment and new risks.
Banks are moving artificial intelligence into their operations, a shift that demands large investment and ties them to outside technology providers. Rating agencies such as Moody's judge how that dependence changes the sector's risk profile, alongside the efficiency gains lenders expect from the technology.
The rating agency Moody's said on Sunday that the race to adopt artificial intelligence is leaving big banks dependent on a small number of technology suppliers. It expects the finance sector to gain from the technology, but says the shift requires substantial investment and creates new risks.