S&P says AI the effectiveness of AI applications will affect bank credit ratings
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AT A GLANCE
S&P stated that, in the coming years, banks' application of AI will increasingly affect their credit ratings.
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S&P:AI Applications Will Affect Bank Credit Ratings
PANews September 21 reported that S&P Global Ratings released a report on Monday stating that, over the next few years, banks' use of artificial intelligence (AI) will increasingly affect their credit ratings. S&P June conducted a survey of approximately 179 financial institutions globally, which showed that they expect costs related to AI to decrease by up to 4%, while by 2028, the decline will expand to 6%to 8%. Currently, approximately 84%of surveyed institutions stated that they have used AI for support functions and process automation; however, due to regulatory and reputational risks, fewer than one-third of institutions stated that they use AI to develop new products and services. S&P noted that banks' success or failure in AI applications will depend on the maturity of their AI strategy and the robustness of their governance frameworks.
S&P Global Ratings released a report on Monday stating that banks' use of AI will increasingly affect their credit ratings over the next few years.
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S&P June surveyed approximately 179 financial institutions globally.
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Respondent institutions expect that this year,AI related costs will decrease by up to 4%, and by 2028, the decrease will widen to 6% to 8%。
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Approximately 84% of respondent institutions stated that they have applied AI to support functions and automated processes.
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Fewer than one-third of respondent institutions stated that they use AI to develop new products and services.
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S&P stated that regulatory and reputational risks have affected institutions' use of AI to develop new products and services.
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S&P noted that the success or failure of banks' application of AI will depend on the maturity of their AI strategy and the robustness of their governance framework.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
S&P believes that AI is not merely a tool for banks to reduce costs. Whether banks can formulate a mature AI strategy and establish sound management rules may also affect how outsiders assess their creditworthiness.
Why it matters to readers
Credit ratings reflect banks' credit risk. The original text states that AI resulting cost changes, product innovation, as well as regulatory and reputational risks may all become rating considerations.
Beginners can focus on whether banks use AI solely to improve efficiency, or can also develop new services while controlling risks, and whether these practices may affect credit ratings.
Risks and unknowns
The original text does not specify the survey methodology, sample list, or regional distribution.
The specific year referred to by “this year” cannot be confirmed from the main text alone.
The cost reduction is an estimate by surveyed institutions, not an outcome already achieved.
The original text does not specify.AI The extent or manner in which the application will change the ratings of specific banks.
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Credit ratings
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