Big Banks Will Fall First To AI, China's Most Famous VC Predicts (qz.com)

An anonymous reader writes: Wall Street will be one of the first and largest industries to be automated by artificial intelligence, predicts Kai-Fu Lee, China's most famous venture capitalist and former Microsoft and Google executive. Lenders, money managers, and analysts -- any jobs that involve crunching numbers to estimate a return -- are at risk. "Banks have the curse of the baggage they have, like Kodak letting go of film," Lee says. "Their DNA is all wrong." [...] The big banks that dominate now, the venture capitalist predicts they will be outmaneuvered by smaller startups able to deploy new technology much faster.

Comments

Yes but as Mark Twain once said

[Anonymous Coward]

"I don't worry about the return on my investment. I worry about the return *of* my investment."

That's something to keep in mind with the coming wave of new-fangled financial services outfits, starting with Capital One, which is apparently Google-like in its determination to collect and harvest every ounce of data about how their customers spend their time and money. Slow-moving and a bit set in their ways can be a good thing.

Here comes the next bubble

[Anonymous Coward]

Part of the housing bubble was due to AI with automatic underwriting and property valuation. Back in the stone age banks had people visit homes to determine their condition and value compared to local sales. By 2006 we had AI doing the estimates to squeeze every cent of profit from the transaction. Same with underwriting. A lot of the loans had the final decision made by computer instead of an underwriter.

Seriously, who uses banks anymore?

[WillAffleckUW]

You get higher returns with a credit union and the fees are lower and they have debit cards and credit cards and cheaper loans too.

Just saying.

Re:Entirely possible.

[Gravis Zero]

Proof-reading isn't magic, but trying to comprehend the beginning of that comment was...

You can have dyslexic me or you can have Trump me, choose.

You should choose Trump me because I have the best most smartest comments you have ever read - everyone says they're great because they are and you wouldn't believe the view from here because I'm rich, I'm really rich. People say mean things because they don't like that I'm rich, they wanna be rich but I'm rich, not them. Before you thank me for my great writing skills, which people do all the time - like this one time I wrote this big wonderful review on Yeppie or some whatever site and I tweeted my review and everyone knew it was so good. I know you want to read my review because it is so good it would bring tears to your eyes but my wonderful, beautiful daughter Ivanka wants to use the big boy computer so I'm off to golf. Seriously though, how beautiful is Ivanka? Those kind of sexy looks are all Trump and when you look you'll know how great she is because I made her. Now get out of the way of the tee because my famously low golfing average is so going to be so low that- wait a second here... FOOOORT! Now where was I? Oh yeah, so my daughter Ivanka...