1 00:00:02,520 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,280 --> 00:00:10,560 Speaker 2: When you look at financial services in general, how they 3 00:00:10,560 --> 00:00:13,760 Speaker 2: will be transformed but also disrupted. If you look at 4 00:00:13,880 --> 00:00:18,000 Speaker 2: AI and private markets, where will the biggest transformation come from. 5 00:00:18,040 --> 00:00:23,720 Speaker 1: So I think both are going to be transformational, and frankly, 6 00:00:24,160 --> 00:00:26,439 Speaker 1: financial leaders, we're all going to have to win both 7 00:00:26,480 --> 00:00:30,040 Speaker 1: of them. Here's here's how we here's how we're thinking 8 00:00:30,040 --> 00:00:33,240 Speaker 1: about it. On the AI front is probably the biggest shift, 9 00:00:33,320 --> 00:00:36,199 Speaker 1: but it's in the longer term. It's we're just beginning 10 00:00:36,240 --> 00:00:40,000 Speaker 1: to unleash the potential in AI at the moment, but 11 00:00:40,080 --> 00:00:42,720 Speaker 1: it will be the rewiring of a lot of the 12 00:00:42,720 --> 00:00:46,479 Speaker 1: global economy. It will be of financial services. And I 13 00:00:46,479 --> 00:00:49,080 Speaker 1: think on AI we can see it in three different areas. 14 00:00:49,400 --> 00:00:52,560 Speaker 1: The one that's more immediate, which is the operational benefits 15 00:00:52,600 --> 00:00:55,880 Speaker 1: we're getting as we're replacing manual tasks, we're able to 16 00:00:56,000 --> 00:00:59,840 Speaker 1: move data at greater speed, We're able to find anomalies faster. 17 00:01:00,720 --> 00:01:02,960 Speaker 1: So the operational side, I think we're all beginning to 18 00:01:03,000 --> 00:01:07,360 Speaker 1: see bottom line benefits. You have the revenue side, the 19 00:01:07,400 --> 00:01:12,280 Speaker 1: one that's exciting immediately as personalization and people don't always say, oh, 20 00:01:12,319 --> 00:01:17,039 Speaker 1: financial services empathy. I think this is our opportunity to 21 00:01:17,160 --> 00:01:20,520 Speaker 1: make some of the changes there. But it will change 22 00:01:20,600 --> 00:01:23,679 Speaker 1: business models. It will change revenue models. I think we 23 00:01:23,800 --> 00:01:27,280 Speaker 1: quite know how yet. And then you've got the risk dimension, 24 00:01:28,160 --> 00:01:30,959 Speaker 1: and that's one where it's going to enable us to 25 00:01:31,000 --> 00:01:33,959 Speaker 1: manage risk better, but it's also going to create new ones. 26 00:01:34,360 --> 00:01:36,640 Speaker 1: And the bottom line for us all on AI is 27 00:01:36,680 --> 00:01:41,480 Speaker 1: not whether it's going to happen, it's how thoughtfully and 28 00:01:41,520 --> 00:01:45,600 Speaker 1: well do we execute it in our businesses. Private credit, 29 00:01:45,959 --> 00:01:50,800 Speaker 1: that one is happening pretty quickly right now. We've got 30 00:01:50,840 --> 00:01:53,000 Speaker 1: to decide is this a tug of war or a 31 00:01:53,080 --> 00:01:57,000 Speaker 1: team sport in private credit? As banks, it's usually more 32 00:01:57,040 --> 00:01:59,560 Speaker 1: fun to play in a team sport. But the some 33 00:01:59,760 --> 00:02:02,520 Speaker 1: area where there's a zero sum game, there's other areas 34 00:02:02,720 --> 00:02:06,360 Speaker 1: where it's the benefit of both. Right now, it's not 35 00:02:06,400 --> 00:02:09,720 Speaker 1: a huge part of the business model, but the inflection 36 00:02:09,840 --> 00:02:12,800 Speaker 1: point is where private credit and AI meet, and I 37 00:02:12,840 --> 00:02:15,600 Speaker 1: think that's what we're seeing in particular in the Kingdom 38 00:02:16,480 --> 00:02:20,280 Speaker 1: is how is the AI infrastructure getting built out, How 39 00:02:20,320 --> 00:02:23,240 Speaker 1: are we going to finance some of the models that 40 00:02:23,280 --> 00:02:26,919 Speaker 1: are out there. What's happening to the power equation? And 41 00:02:26,960 --> 00:02:30,120 Speaker 1: this is where it's not easy. This is not cooker 42 00:02:30,200 --> 00:02:34,120 Speaker 1: cutting finance. So banks play an important role in structuring 43 00:02:34,200 --> 00:02:36,280 Speaker 1: as You'm sure you'll hear from all of us different 44 00:02:36,320 --> 00:02:40,040 Speaker 1: deals we're working on and private credit in this important 45 00:02:40,040 --> 00:02:43,040 Speaker 1: part of the equation. The world needs both of us. 46 00:02:43,400 --> 00:02:45,160 Speaker 1: So let's try and make this more of a team 47 00:02:45,200 --> 00:02:48,320 Speaker 1: sport and as big a pie as possible. Let's not 48 00:02:48,400 --> 00:02:50,960 Speaker 1: be complacent. There's gonna be winners and losers. 49 00:02:51,360 --> 00:02:52,639 Speaker 2: I like the way you put it, is a team 50 00:02:52,680 --> 00:02:55,400 Speaker 2: sport or not think what's your take on private markets? 51 00:02:55,400 --> 00:02:58,080 Speaker 2: But also AI because AI could accelerate really quickly. 52 00:02:58,800 --> 00:03:01,400 Speaker 3: As always, it's hard to for Jane because she said 53 00:03:01,400 --> 00:03:05,680 Speaker 3: all the good things, but I do think on AI. 54 00:03:05,919 --> 00:03:09,799 Speaker 3: Just to add first, it represents obviously a great general 55 00:03:09,800 --> 00:03:14,000 Speaker 3: purpose technology which can have a transformative effect not only 56 00:03:14,120 --> 00:03:16,440 Speaker 3: in how we run ourselves, but how we present ourselves 57 00:03:16,440 --> 00:03:22,160 Speaker 3: to our customers with empathy. Hopefully equally, when we think 58 00:03:22,200 --> 00:03:26,120 Speaker 3: about our workforce and our colleagues, it is an opportunity 59 00:03:26,120 --> 00:03:29,720 Speaker 3: and a risk. It's an opportunity to create a much 60 00:03:29,760 --> 00:03:33,680 Speaker 3: more dynamic, enabled, empowered workforce and help it manage the 61 00:03:33,720 --> 00:03:37,640 Speaker 3: transition because some tools will transition. It's a risk because 62 00:03:37,680 --> 00:03:40,920 Speaker 3: if you don't pay attention to it. Then you can 63 00:03:41,200 --> 00:03:43,920 Speaker 3: end up with divisions in the workforce and more disruption 64 00:03:44,000 --> 00:03:48,040 Speaker 3: than you'd like on private credit. At one level, this 65 00:03:48,120 --> 00:03:50,480 Speaker 3: is something that banks have been doing all the time, 66 00:03:50,920 --> 00:03:53,400 Speaker 3: and when we think about it, definition increase. The definition 67 00:03:53,520 --> 00:03:56,839 Speaker 3: I like to use is that it's credit that does 68 00:03:56,880 --> 00:03:59,160 Speaker 3: not come through banks and does not come through the 69 00:03:59,160 --> 00:04:02,960 Speaker 3: public market, but it comes through lots of recognized players, 70 00:04:03,000 --> 00:04:07,600 Speaker 3: insurance companies, asset managers directly, including what we call the 71 00:04:07,640 --> 00:04:10,000 Speaker 3: private credit funds. And I think it should be a 72 00:04:10,040 --> 00:04:12,760 Speaker 3: team sport. I think there are some things branks will 73 00:04:12,800 --> 00:04:15,680 Speaker 3: not find it appropriate to do under their capitalization rules. 74 00:04:16,000 --> 00:04:18,200 Speaker 3: Others should do it because the world needs the credit, 75 00:04:18,560 --> 00:04:21,279 Speaker 3: and banks should work with them, either by financing them 76 00:04:21,760 --> 00:04:24,760 Speaker 3: or even working jointly directly. But that's the best way 77 00:04:24,800 --> 00:04:26,040 Speaker 3: to get credit into the economy.