In recent quarters, main financial entities registered results above forecastsdriven by the application of AI-based tools to improve efficiency and reduce costs.
But optimism is not unanimous, since some voices warn about the risk of a general overvaluation in the technology sector.
Warnings about the risks of the technological boom
Several executives in the sector acknowledged their concern about the speed and magnitude of the investments. One of them expressed that he is “aware of the risk that the enormous investment in AI infrastructure “It can lead to a divergence, where some companies prosper and others fail.”
In that line, Mark Masonfinancial director of Citigroupmaintained that “It’s hard to look at current valuations and not think that some sectors are probably overvalued.”, alluding to the strong concentration of capital in technology companies linked to AI.
The executive noted that investment euphoria could be distorting prices of stocks, generating a dynamic similar to that which preceded other historical bubbles in the US markets.
Concern about overreliance on technology
The director of operations of Goldman Sachs, John Waldronagreed with this diagnosis and warned from Washington that the American economy this “betting too hard” by artificial intelligence, positioning it as sole engine of growth.
According to the executive, the risk does not lie in the technology itself, but in the disproportion between expectations and actual resultssomething that could affect both large corporations and retail investors. “History shows that when a sector concentrates the market’s attention, enthusiasm usually overcomes prudence,” said sources from the investment bank.
Despite the warnings, the main financial entities continue expanding the use of artificial intelligence in its internal operations. JP Morgan, Bank of America and Morgan Stanley They integrated technology into analysis, risk management and customer service systems, seeking to optimize processes and reduce operating costs.
He co-CEO of JP Morgan, Troy Rohrbaughassured that “We are investing and making profits, but the most significant results will come in the futureAs he explained, AI has already enabled the bank to improve productivity in key areas, although its full potential is still being developed.
For its part, Sharon Yeshayafinancial director of Morgan Stanleyexplained that his entity continues to explore new applications. “We’re scratching the surface of what this technology can do” he stated, stressing that current advances represent only the beginning of a deeper transformation.
Market outlook
Wall Street analysts agree that artificial intelligence represents a structural revolution in the financial system, although they warn that its expansion must be accompanied by a prudent evaluation of the valuation levels and the systemic risks.
In this context, while banks are betting on technological innovation, the discussion is growing about whether the current enthusiasm reflects a sustainable trend or a bubble in formation. The recent history of the markets, from the dot com crisis until the 2008 real estate bubbleserves as a reminder that even the most promising technological revolutions can become unstable when optimism replaces analysis.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
