HSBC Teams Up With Google Cloud for Global AI Expansion
In brief
- HSBC, a major global bank, has forged a long-term partnership with Google Cloud to enhance its operations using artificial intelligence.
- The collaboration focuses on areas like wealth management and detecting financial crimes, aiming to make banking more efficient and secure.
- This deal underscores the growing role of AI in finance, where it can automate tasks and improve decision-making.
- The partnership involves working closely with Google Cloud's engineering teams and DeepMind, a leader in AI research.
- HSBC will use these tools to better serve its customers and manage risks.
- While exact details are limited, this move reflects how big banks are increasingly relying on advanced technology to stay competitive.
- As AI becomes more integrated into financial services, HSBC's collaboration with Google Cloud could set a precedent for other institutions.
- The project could expand to include more services or regions in the coming years.
Terms in this brief
- DeepMind
- A leading company in artificial intelligence research, known for its work in areas like machine learning and neural networks. DeepMind's AI systems can solve complex problems, such as playing strategic games at a high level, which helps improve decision-making processes in various industries including finance.
Read full story at AI News →
More briefs
Qualcomm Buys AI Startup Modular for $4 Billion
Qualcomm will buy AI startup Modular for $4 billion. This deal gives Qualcomm access to software that runs AI models across different chips. The deal is important because it helps Qualcomm compete with Nvidia in the AI market. Modular's software is used by many companies and supports chips from Nvidia, AMD, and other vendors. Qualcomm expects to issue up to 19.2 million shares of its common stock to Modular's equity holders. The transaction is valued at $3.92 billion and is expected to close in the second half of this year. Qualcomm will now push deeper into AI and data-center markets to reduce its reliance on smartphone chips. Qualcomm will continue to expand its AI capabilities.
Samsung Expands AI Access for Employees
Samsung Electronics is giving all its employees access to ChatGPT Enterprise and Codex, powerful AI tools that can assist with both technical and non-technical tasks. This move follows recent restrictions on AI use in South Korea, which were lifted earlier this year. OpenAI confirmed the expansion, stating that it now includes every Samsung employee in Korea and all Device eXperience (DX) division staff globally. The DX division covers a wide range of products, including smartphones, consumer electronics, and home appliances. By opening these tools to more employees, Samsung aims to streamline its operations and boost productivity across various departments. This could lead to faster development cycles, improved problem-solving, and enhanced innovation in their product lines. For developers and researchers within the company, this access will provide a new level of support for coding, debugging, and designing. The decision reflects a broader trend of companies embracing AI to stay competitive in the tech industry. As more organizations adopt similar strategies, it’s likely that Samsung will continue to explore innovative ways to integrate AI into its workflows and products.
Companies Struggle with AI Investment Returns
Most companies that invest in AI do not see a good return on their investment. A survey found that 88% of organizations use AI in at least one business function, but only 39% report any impact on their earnings. The impact of AI on earnings is usually small, less than 5%. Many companies, 60%, generate no material value from their AI investments. It takes two to four years to see a satisfactory return on a typical AI use case. Only 5% of companies create substantial value from AI at scale. As companies continue to invest in AI, they will look for ways to improve their returns. They will try to find new ways to use AI to make more money.
Peregrine Technologies Raises $250 Million
Peregrine Technologies raised $250 million in funding at a $6.8 billion valuation. The company provides a public safety platform for law enforcement. The platform connects data from various sources and makes it searchable in real time. This helps public safety leaders make better decisions. The company now serves over 400 agencies and organizations, representing 125 million people. The company plans to work with close to 1,000 cities by the end of the year.
Google Invests in A24 for AI Film Tools
Google invested $75 million in A24 to develop AI-powered filmmaking tools. This matters because A24 will get access to Google's DeepMind research and infrastructure. A24 will use this to build new workflows and techniques for filmmakers. The deal is significant as it will help A24 expand its storytelling possibilities. A24 will work with Google to develop new AI tools for filmmakers. The future of filmmaking will be shaped by this partnership.