Moody's warns: Banks' accelerated embrace of AI may lead to dependence on technology giants

IT House News on August 9, the Guardian reported today that credit rating agency Moody’s warned that large banks are now increasingly dependent on several Silicon Valley technology companies. IT House quotes Moody's here, saying that the financial industry can gain benefits such as cost reduction and efficiency improvement by integrating AI into daily operations. However, investing in AI costs a lot of money and may also bring risks such as privacy leaks, network security, and fraud. According to a January report by the British Treasury, 75% of financial companies in the UK are using AI, with insurance companies and international banks having the highest acceptance. These companies mainly use AI to automate work and even core operations such as processing insurance claims and evaluating customer credit reports. Moody's believes that financial firms' reliance on a small number of AI models could create systemic dependence. If the AI ​​model fails, the bank's customer service will be quickly affected. As AI applications continue to deepen, regulators may be more concerned about third-party risks in the AI ​​supply chain and operational reliability. Over time, a group of dominant AI providers may gain bargaining power and impose higher prices on banks. And companies such as OpenAI and Anthropic are still losing money, and investors are also demanding that they achieve profitability.