Gen Al Expected to be Profitable Within Next 5 Years

DNVN - According to Mr. Pham Do Nhat Vinh - Deputy General Director, Head of Finance - Banking Consulting, KPMG Vietnam Company, one of the most mentioned technologies is Gen Al. 70% of the world's banking executives surveyed expect Gen Al to bring profits within the next 5 years.

Mr. Pham Do Nhat Vinh - Deputy General Director, Head of Finance - Banking Consulting, KPMG Vietnam Company said that in 2023, KPMG conducted a survey with nearly 140 bank CEOs in many countries around the world. The survey showed that the top concern for banks is "cost of living".

“The CEOs acknowledged that the economic downturn has had a severe impact on their customers and workforce, as it has led to a decline in lending and investment volumes. In addition, wage inflation has added to the pressure as banks struggle to attract and retain talent.

We have also seen similarities in the Vietnamese economy recently,” Mr. Vinh commented.

Gen AI is gradually becoming a major topic in the banking industry.

According to Mr. Vinh, the survey results as well as working with leaders of many global banking and insurance institutions of KPMG show that technology is gradually becoming the main topic of the industry.

One of the most talked about technologies is Gen Al with benefits such as creating efficiency and improving data quality, minimizing errors and processing time. Along with that, it enhances decision-making capabilities, supports fraud detection, and enables scenario planning.

Gen AI is considered by CEOs to be the most important investment for their organization. The top benefits of implementing Gen AI for both industries are highlighted by “increased profits” and “fraud detection and cyberattack response.”

In the banking industry, 74% of CEOs surveyed expect Gen AI to be profitable within the next five years, with 23% expecting to be profitable within three years.

Environmental, social and governance (ESG) factors are also receiving increasing attention, as many countries around the world strive to implement ESG. One of the prominent regulations is the European Union (EU)'s carbon border adjustment mechanism (CBAM), which has a significant impact on exporting countries as well as some industries.

In Vietnam, banking is the pioneer in implementing ESG. The banking industry has proactively implemented ESG, focusing on roadmap planning and building sustainable development reports. Gradually integrating it into credit granting activities and important banking activities.

However, ESG implementation is not a destination, but a journey. On that path, it takes time for the "spirit" of ESG to gradually spread into all aspects of financial and banking activities such as third-party management, customer requirements in deposit activities, credit granting, and risk quantification.

In the future, similar to investments in datawarehouses and datamarts, financial institutions in Vietnam will gradually build ESG performance indicators, the foundation of which is ESG datamarts.

There are currently various regulations regarding the use of AI in the EU. Some initiatives include the European Pensions and Occupational Health Insurance Agency’s AI Governance Principles and the European Commission’s AI Act. However, some of these publications are still drafts, discussion papers and not yet applicable law.

“A major milestone will come at the end of 2023 when EU member states reach an agreement on a set of rules governing AI, which will be officially published in 2024. This will be the first legal framework related to AI in the EU and the foundation for a complete regulation on AI management,” said Mr. Vinh.

Galaxy

Source: https://doanhnghiepvn.vn/cong-nghe/ky-vong-gen-al-se-mang-lai-loi-nhuan-trong-vong-5-nam-toi/20240616094039708