03.12.25

Wall Street Flags New AI Risks

by: Georgia Hall

In their annual reports, Wall Street giants like Goldman Sachs, Citigroup and JPMorgan Chase warned investors about new risks from the increasing use of artificial intelligence (AI), including software hallucinations, employee-morale issues, use by cybercriminals and the impact of changing laws. JPMorgan, for example, said AI could cause “workforce displacement” that might affect staff morale and retention and increase competition for hiring employees with the necessary technological skills. Citigroup said that as it rolls out generative AI at select parts of the bank, there are risks of “ineffective, inadequate or faulty” results produced for its analysts. Goldman Sachs said that increased competition poses risks to integrating AI technologies in a timely enough manner to boost productivity, reduce costs and provide clients with better transactions, products and services.

Read the full article on Bloomberg