Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: When you look at financial services in general, how they
Speaker 2: will be transformed but also disrupted. If you look at
Speaker 2: AI and private markets, where will the biggest transformation come from.
Speaker 1: So I think both are going to be transformational, and frankly,
Speaker 1: financial leaders, we're all going to have to win both
Speaker 1: of them. Here's here's how we here's how we're thinking
Speaker 1: about it. On the AI front is probably the biggest shift,
Speaker 1: but it's in the longer term. It's we're just beginning
Speaker 1: to unleash the potential in AI at the moment, but
Speaker 1: it will be the rewiring of a lot of the
Speaker 1: global economy. It will be of financial services. And I
Speaker 1: think on AI we can see it in three different areas.
Speaker 1: The one that's more immediate, which is the operational benefits
Speaker 1: we're getting as we're replacing manual tasks, we're able to
Speaker 1: move data at greater speed, We're able to find anomalies faster.
Speaker 1: So the operational side, I think we're all beginning to
Speaker 1: see bottom line benefits. You have the revenue side, the
Speaker 1: one that's exciting immediately as personalization and people don't always say, oh,
Speaker 1: financial services empathy. I think this is our opportunity to
Speaker 1: make some of the changes there. But it will change
Speaker 1: business models. It will change revenue models. I think we
Speaker 1: quite know how yet. And then you've got the risk dimension,
Speaker 1: and that's one where it's going to enable us to
Speaker 1: manage risk better, but it's also going to create new ones.
Speaker 1: And the bottom line for us all on AI is
Speaker 1: not whether it's going to happen, it's how thoughtfully and
Speaker 1: well do we execute it in our businesses. Private credit,
Speaker 1: that one is happening pretty quickly right now. We've got
Speaker 1: to decide is this a tug of war or a
Speaker 1: team sport in private credit? As banks, it's usually more
Speaker 1: fun to play in a team sport. But the some
Speaker 1: area where there's a zero sum game, there's other areas
Speaker 1: where it's the benefit of both. Right now, it's not
Speaker 1: a huge part of the business model, but the inflection
Speaker 1: point is where private credit and AI meet, and I
Speaker 1: think that's what we're seeing in particular in the Kingdom
Speaker 1: is how is the AI infrastructure getting built out, How
Speaker 1: are we going to finance some of the models that
Speaker 1: are out there. What's happening to the power equation? And
Speaker 1: this is where it's not easy. This is not cooker
Speaker 1: cutting finance. So banks play an important role in structuring
Speaker 1: as You'm sure you'll hear from all of us different
Speaker 1: deals we're working on and private credit in this important
Speaker 1: part of the equation. The world needs both of us.
Speaker 1: So let's try and make this more of a team
Speaker 1: sport and as big a pie as possible. Let's not
Speaker 1: be complacent. There's gonna be winners and losers.
Speaker 2: I like the way you put it, is a team
Speaker 2: sport or not think what's your take on private markets?
Speaker 2: But also AI because AI could accelerate really quickly.
Speaker 3: As always, it's hard to for Jane because she said
Speaker 3: all the good things, but I do think on AI.
Speaker 3: Just to add first, it represents obviously a great general
Speaker 3: purpose technology which can have a transformative effect not only
Speaker 3: in how we run ourselves, but how we present ourselves
Speaker 3: to our customers with empathy. Hopefully equally, when we think
Speaker 3: about our workforce and our colleagues, it is an opportunity
Speaker 3: and a risk. It's an opportunity to create a much
Speaker 3: more dynamic, enabled, empowered workforce and help it manage the
Speaker 3: transition because some tools will transition. It's a risk because
Speaker 3: if you don't pay attention to it. Then you can
Speaker 3: end up with divisions in the workforce and more disruption
Speaker 3: than you'd like on private credit. At one level, this
Speaker 3: is something that banks have been doing all the time,
Speaker 3: and when we think about it, definition increase. The definition
Speaker 3: I like to use is that it's credit that does
Speaker 3: not come through banks and does not come through the
Speaker 3: public market, but it comes through lots of recognized players,
Speaker 3: insurance companies, asset managers directly, including what we call the
Speaker 3: private credit funds. And I think it should be a
Speaker 3: team sport. I think there are some things branks will
Speaker 3: not find it appropriate to do under their capitalization rules.
Speaker 3: Others should do it because the world needs the credit,
Speaker 3: and banks should work with them, either by financing them
Speaker 3: or even working jointly directly. But that's the best way
Speaker 3: to get credit into the economy.