WEBVTT - Citigroup and Barclays CEOs Talk AI and Financial Services

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>When you look at financial services in general, how they

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<v Speaker 2>will be transformed but also disrupted. If you look at

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<v Speaker 2>AI and private markets, where will the biggest transformation come from.

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<v Speaker 1>So I think both are going to be transformational, and frankly,

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<v Speaker 1>financial leaders, we're all going to have to win both

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<v Speaker 1>of them. Here's here's how we here's how we're thinking

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<v Speaker 1>about it. On the AI front is probably the biggest shift,

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<v Speaker 1>but it's in the longer term. It's we're just beginning

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<v Speaker 1>to unleash the potential in AI at the moment, but

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<v Speaker 1>it will be the rewiring of a lot of the

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<v Speaker 1>global economy. It will be of financial services. And I

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<v Speaker 1>think on AI we can see it in three different areas.

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<v Speaker 1>The one that's more immediate, which is the operational benefits

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<v Speaker 1>we're getting as we're replacing manual tasks, we're able to

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<v Speaker 1>move data at greater speed, We're able to find anomalies faster.

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<v Speaker 1>So the operational side, I think we're all beginning to

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<v Speaker 1>see bottom line benefits. You have the revenue side, the

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<v Speaker 1>one that's exciting immediately as personalization and people don't always say, oh,

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<v Speaker 1>financial services empathy. I think this is our opportunity to

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<v Speaker 1>make some of the changes there. But it will change

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<v Speaker 1>business models. It will change revenue models. I think we

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<v Speaker 1>quite know how yet. And then you've got the risk dimension,

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<v Speaker 1>and that's one where it's going to enable us to

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<v Speaker 1>manage risk better, but it's also going to create new ones.

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<v Speaker 1>And the bottom line for us all on AI is

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<v Speaker 1>not whether it's going to happen, it's how thoughtfully and

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<v Speaker 1>well do we execute it in our businesses. Private credit,

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<v Speaker 1>that one is happening pretty quickly right now. We've got

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<v Speaker 1>to decide is this a tug of war or a

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<v Speaker 1>team sport in private credit? As banks, it's usually more

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<v Speaker 1>fun to play in a team sport. But the some

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<v Speaker 1>area where there's a zero sum game, there's other areas

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<v Speaker 1>where it's the benefit of both. Right now, it's not

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<v Speaker 1>a huge part of the business model, but the inflection

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<v Speaker 1>point is where private credit and AI meet, and I

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<v Speaker 1>think that's what we're seeing in particular in the Kingdom

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<v Speaker 1>is how is the AI infrastructure getting built out, How

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<v Speaker 1>are we going to finance some of the models that

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<v Speaker 1>are out there. What's happening to the power equation? And

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<v Speaker 1>this is where it's not easy. This is not cooker

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<v Speaker 1>cutting finance. So banks play an important role in structuring

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<v Speaker 1>as You'm sure you'll hear from all of us different

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<v Speaker 1>deals we're working on and private credit in this important

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<v Speaker 1>part of the equation. The world needs both of us.

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<v Speaker 1>So let's try and make this more of a team

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<v Speaker 1>sport and as big a pie as possible. Let's not

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<v Speaker 1>be complacent. There's gonna be winners and losers.

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<v Speaker 2>I like the way you put it, is a team

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<v Speaker 2>sport or not think what's your take on private markets?

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<v Speaker 2>But also AI because AI could accelerate really quickly.

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<v Speaker 3>As always, it's hard to for Jane because she said

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<v Speaker 3>all the good things, but I do think on AI.

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<v Speaker 3>Just to add first, it represents obviously a great general

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<v Speaker 3>purpose technology which can have a transformative effect not only

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<v Speaker 3>in how we run ourselves, but how we present ourselves

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<v Speaker 3>to our customers with empathy. Hopefully equally, when we think

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<v Speaker 3>about our workforce and our colleagues, it is an opportunity

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<v Speaker 3>and a risk. It's an opportunity to create a much

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<v Speaker 3>more dynamic, enabled, empowered workforce and help it manage the

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<v Speaker 3>transition because some tools will transition. It's a risk because

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<v Speaker 3>if you don't pay attention to it. Then you can

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<v Speaker 3>end up with divisions in the workforce and more disruption

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<v Speaker 3>than you'd like on private credit. At one level, this

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<v Speaker 3>is something that banks have been doing all the time,

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<v Speaker 3>and when we think about it, definition increase. The definition

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<v Speaker 3>I like to use is that it's credit that does

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<v Speaker 3>not come through banks and does not come through the

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<v Speaker 3>public market, but it comes through lots of recognized players,

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<v Speaker 3>insurance companies, asset managers directly, including what we call the

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<v Speaker 3>private credit funds. And I think it should be a

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<v Speaker 3>team sport. I think there are some things branks will

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<v Speaker 3>not find it appropriate to do under their capitalization rules.

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<v Speaker 3>Others should do it because the world needs the credit,

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<v Speaker 3>and banks should work with them, either by financing them

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<v Speaker 3>or even working jointly directly. But that's the best way

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<v Speaker 3>to get credit into the economy.