AI push is putting banks at mercy of tech firms, warns Moody’s

The reliance of most financial firms on a small set of AI and cloud computing providers risks creating a systemic dependency. Photograph: Ahn Young-joon/AP

The rating agency Moody’s has said the race to adopt AI is putting big banks at the mercy of a small group of Silicon Valley firms, leaving them vulnerable to widespread outages and price gouging by profit-hungry tech bosses.

The financial sector’s efforts to integrate AI into day-to-day operations will eventually cut costs and increase revenues across the City and Wall Street, Moody’s said.