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Since the launch of OpenAI GPT-3 in June 2020, I have been very interested in the emerging technologies that used generative AI (OpenAI API, n.d.). This technology not only sparked my interests but also the interest of multinationals and start-up founders. In a very short period, a lot of startups wanted to jump on this trend, hoping to develop innovative products and services. Generative AI offers unprecedented possibilities, from automating creative processes to solving complex problems. Potentially, generative AI will transform whole industry by implementing this technology in daily operations of businesses.

There are several applications possible with generative AI. For me, the coding you can do well with generative AI is a great addition. Within many companies, certain tasks are performed very repetitively. Often, these tasks can be automated. This is where generative AI comes in handy. Indeed, it can help companies develop code that ensures that links are created between systems or that applications are built that ensure that. This automation can save time and money, allowing companies to work more efficiently and focus on more strategic tasks.

From my own experience, I can say that generative AI has helped me a lot in prototyping solutions in Excel using VBA. This has already allowed me to realize several solutions that have resulted in me saving several hours of work per week within the organization. In addition, this technological advancement now allows me to develop ideas that I envision more quickly. Perhaps without generative AI, this would not have been possible at all.

I do think there are limitations to the use of generative AI within organizations. As Stefan van Duin pointed out in the lecture, it is very complex to fully implement generative AI tools into a company’s processes. This is because in order to implement generative AI tools, there must be a usable source of data. This is necessary because otherwise a very generic output keeps coming from the tools, which then makes the tools not applicable. It is therefore very important for companies to first focus on a good data strategy before implementing AI tools.

In conclusion, generative AI has opened up a whole new world for myself. It has given me new insights and, in the process, helped me a lot to develop new applications. I also find it very interesting to further explore implications that are still there in the future and perhaps be able to solve them within companies.

References

OpenAI API. (n.d.). OpenAI. https://openai.com/index/openai-api/

5/5 (2)

The European banking sector is facing a new wave of consolidation. The Netherlands is unwinding its state stake in ABN Amro, which means foreign major banks may consider an acquisition (Rotteveel, 2024). Moreover, UniCredit has unexpectedly shown interest in Germany’s Commerzbank (Couwenbergh et al., 2024). These developments show that consolidation is on the agenda. But what does this mean for the use of customer data, and what risks does AI-driven decision-making pose?

Banks are increasingly consolidating to strengthen their competitive position and benefit from economies of scale. Technological advances are accelerating this trend, as large banks have more resources to invest in technology (Dontis-Charitos & Leong, 2023). As a result, the use of disruptive technologies, such as AI, is growing (Agarwal et al., 2021). Banks are increasingly operating from an ‘AI factory,’ where AI drives decisions (Iansiti & R. Lakhani, 2021).

As this consolidation takes place, big banks have huge data sets that can be used to analyse customer behaviour, make credit decisions or offer personalised services. This sounds efficient and interesting but also raises questions. Using personal data in AI models also carries risks. For example, when algorithmic bias can influence financial decision-making which can lead to uneven or biased outcomes.

In my view, it is crucial to properly identify these potential dangers and, where necessary, start creating legislation from higher authorities. Indeed, it is important that there is more transparency in the future about how AI models use personal data. Although laws such as Article 15 of the AVG give the right to access, true transparency becomes more complex when information is deeply embedded in AI models (Uitvoeringswet Algemene Verordening Gegevensbescherming, 2021). This is precisely why stricter regulation and supervision is indispensable to protect the interests of individuals.

In conclusion, consolidation of European banks and the increase in application of AI within banks presents opportunities, but also risks for the use of personal data. While technology promotes efficiency, biases in AI systems can lead to unfair outcomes. Therefore, strict regulation and increased transparency is necessary to safeguard the interests and privacy of individuals.

References

Agarwal, A., Agarwal, Singhal, C., Singhal, & Thomas, R., Thomas. (2021). AI-powered decision making for the bank of the future. In Global Banking & Securities. https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/ai%20powered%20decision%20making%20for%20the%20bank%20of%20the%20future/ai-powered-decision-making-for-the-bank-of-the-future.pdf

Couwenbergh, P., Dohmen, J., & Hekking, H. D. (2024, September 13). Fusiegolf? EU-landen niet happig op buitenlandse kopers van ‘hun’ banken. Het Financieele Dagblad. https://fd.nl/bedrijfsleven/1530458/fusiegolf-eu-landen-niet-happig-op-buitenlandse-kopers-van-hun-banken

Dontis-Charitos, P., & Leong, S. H. (2023). Bank consolidation, connectedness, and systemic risk. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4468356

Iansiti, M., & R. Lakhani, K. (2021, January 21). Competing in the Age of AI. Harvard Business Review. https://hbr.org/2020/01/competing-in-the-age-of-ai

Rotteveel, M. (2024, September 12). Staat neemt verlies op ABN Amro en voedt speculatie over een overname. Het Financieele Dagblad. https://fd.nl/politiek/1530683/staat-neemt-verlies-op-abn-amro-en-voedt-speculatie-over-een-overname

Uitvoeringswet Algemene verordening gegevensbescherming. (2021, July 1). https://wetten.overheid.nl/BWBR0040940/2021-07-01#Hoofdstuk2