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