Big technology companies are betting that a new wave of smaller, more precise AI models will be more effective when it comes to the needs of businesses in sectors like law, finance, and health care.
Despite bold statements, a lot of companies are failing to produce tangible results, according to Edward J Achtner, the head of generative AI for U.K. banking giant HSBC.
“Candidly, there’s a lot of success theater out there,” Achtner said on a panel at the CogX Global Leadership Summit alongside Ranil Boteju — a fellow AI leader at rival British bank Lloyds Banking Group — and Nathalie Oestmann, head of NV Ltd, an advisory firm for venture capital funds.
“We have to be very clinical in terms of what we choose to do, and where we choose to do it,” Achtner told attendees of the event, held at the Royal Albert Hall in London earlier this week.
Achtner outlined how the 150-year-old lending institution has embraced artificial intelligence since ChatGPT — the popular AI chatbot from Microsoft-backed startup OpenAI — burst onto the scene in November 2022.
The HSBC AI leader said that the bank has more than 550 use cases across its business lines and functions linked to AI — ranging from fighting money laundering and fraud using machine learning tools to supporting knowledge workers with newer generative AI systems.
One example he gave was a partnership that HSBC has in place with internet search titan Google on the use of AI technology anti-money laundering and fraud mitigation. That tie-up has been in place for several years, he said. The bank has also dipped its toes deeper into genAI tech much more recently.
“When it comes to generative artificial intelligence, we do need to clearly separate that” from other types of AI, Achtner said. “We do approach the underlying risk with respect to generative very differently because, while it represents incredible potential opportunity and productivity gains, it also represents a different type of risk.”
Achtner’s comments come as other figures in the financial services sector — particularly leaders at startup firms — have made bold statements about the level of overall efficiency gains and cost reductions they are seeing as a result of investments in AI.
Buy now, pay later firm Klarna says it has been taking advantage of AI to make up for loss of productivity resulting from declines in its workforce as employees move on from the company.
It is implementing a company-wide hiring freeze and has slashed overall employee headcount down to 3,800 from 5,000 — a roughly 24% workforce reduction — with the help of AI, CEO Sebastian Siemiatkowski said in August. He is looking to further reduce Klarna’s headcount to 2,000 staff members — without specifying a time for this target.
Klarna’s boss said the firm was lowering its overall headcount against the backdrop of AI’s potential to have “a dramatic impact” on jobs and society.
“I think politicians already today should consider whether there are other alternatives of how they could support people that may be effective,” he said at the time in an interview with the BBC. Siemiatkowski said it was “too simplistic” to say AI’s disruptive effects would be offset by the creation of new jobs thanks to AI.
Oestmann of NV Ltd, a London-based firm that offers advisory services for the C-suite of venture capital and private equity firms, directly touched on Klarna’s actions, saying headlines around such AI-driven workforce reductions are “not helpful.”
Klarna, she suggested, likely saw that AI “makes them a more valuable company” and was consequently incorporating the technology as part of plans to reduce its workforce anyway.
The result Klarna is seeing from AI “are very real,” a Klarna spokesperson told CNBC. “We publicize these results because we want to be honest and transparent about the impact genAI is having in the real world in companies today,” the spokesperson added.
“At the end of the day,” Oestmann added, as long as people are “trained appropriately” and banks and other financial services firm can “reinvent” themselves in the new AI era, “it will just help us to evolve.” She advised financial firms to pursue “continuous learning in everything that you do.”
“Make sure you are trying these tools out, make sure you are making this part of your everyday, make sure you are curious,” she added.
Boteju, chief data and analytics officer at Lloyds, pointed to three main use cases that the lender sees with respect to AI: automating back office functions like coding and engineering documentation, “human-in-the loop” uses like prompts for sales staff, and AI-generated responses to client queries.
Boteju stressed that Lloyds is “proceeding with caution” when it comes to exposing the bank’s customers to generative AI tools. “We want to get our guardrails in place before we actually start to scale those,” he added.
“Banks in particular have been using AI and machine learning for probably about 15 or 20 years,” Boteju said, signaling that machine learning, intelligent automation and chatbots are things traditional lenders have been “doing for a while.”
Generative AI, on the other hand, is a more nascent technology, according to the Lloyds exec. The bank is increasingly thinking about how to scale that technology — but by “using the current frameworks and infrastructure we’ve got,” rather than by moving the needle significantly.
Boteju and Achtner’s comments tally with what other AI leaders of financial services have said previously. Speaking with CNBC last week, Bahadir Yilmaz, chief analytics officer of ING, said that AI is unlikely to be as disruptive as firms like Klarna are suggesting with their public messaging.
“We see the same potential that they’re seeing,” Yilmaz said in an interview in London. “It’s just the tone of communication is a bit different.” He added that ING is primarily using AI in its global contact centers and internally for software engineering.
“We don’t need to be seen as an AI-driven bank,” Yilmaz said, adding that, with many processes lenders won’t even need AI to solve certain problems. “It’s a really powerful tool. It’s very disruptive. But we don’t necessarily have to say we are putting it as a sauce on all the food.”
Johan Tjarnberg, CEO of Swedish online payments firm Trustly, told CNBC earlier this week that AI “will actually be one of the biggest technology levers in payments.”But even so, he noted that the firm is focusing more of the “basics of AI” than on transformative changes like AI-led customer service.
One area where Trustly is looking to improve customer experience with AI is subscriptions. The startup is working on an “intelligent charging mechanism” that would aim to figure out the best time for a bank to take payment from a subscription platform user, based on their historical financial activity.
Tjarnberg added that Trustly is seeing closer to 5-10% improved efficiency as a result of implementing AI within its organization.
An AI assistant on display at Mobile World Congress 2024 in Barcelona.
Angel Garcia | Bloomberg | Getty Images
Artificial intelligence is shaking up the advertising business and “unnerving” investors, one industry leader told CNBC.
“I think this AI disruption … unnerving investors in every industry, and it’s totally disrupting our business,” Mark Read, the outgoing CEO of British advertising group WPP, told CNBC’s Karen Tso on Tuesday.
The advertising market is under threat from emerging generative AI tools that can be used to materialize pieces of content at rapid pace. The past couple of years has seen the rise of a number of AI image generators, including OpenAI’s DALL-E, Google’s Veo and Midjourney.
In his first interview since announcing he would step down as WPP boss, Read said that AI is “going to totally revolutionize our business.”
“AI is going to make all the world’s expertise available to everybody at extremely low cost,” he said at London Tech Week. “The best lawyer, the best psychologist, the best radiologist, the best accountant, and indeed, the best advertising creatives and marketing people often will be an AI, you know, will be driven by AI.”
Read said that 50,000 WPP employees now use WPP Open, the company’s own AI-powered marketing platform.
“That, I think, is my legacy in many ways,” he added.
Structural pressure on creative parts of the ad business are driving industry consolidation, Read also noted, adding that companies would need to “embrace” the way in which AI would impact everything from creating briefs and media plans to optimizing campaigns.
A report from Forrester released in June last year showed that more than 60% of U.S. ad agencies are already making use of generative AI, with a further 31% saying they’re exploring use cases for the technology.
‘Huge transformation’
Read is not alone in this view. Advertising is undergoing a “huge transformation” due to the disruptive effects of AI, French advertising giant Publicis Groupe’s CEO Maurice Levy told CNBC at the Viva Tech conference in Paris.
He noted that AI image and video generation tools are speeding up content production drastically, while automated messaging systems can now achieve “personalization at scale like never before.”
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However, the Publicis chief stressed that AI should only be considered a tool that people can use to augment their lives.
“We should not believe that AI is more than a tool,” he added.
And while AI is likely to impact some jobs, Levy ultimately thinks it will create more roles than it destroys.
“Will AI replace me, and will AI kill some jobs? I think that AI, yes, will destroy some jobs,” Levy conceded. However, he added that, “more importantly, AI will transform jobs and will create more jobs. So the net balance will be probably positive.”
This, he says, would be in keeping with the labor impacts of previous technological inventions like the internet and smartphones.
“There will be more autonomous work,” Levy added.
Still, Nicole Denman Greene, analyst at Gartner, warns brands should be wary of causing a negative reaction from consumers who are skeptical of AI’s impact on human creativity.
According to a Gartner survey from September, 82% of consumers said firms using generative AI should prioritize preserving human jobs, even if it means lower profits.
“Pivot from what AI can do to what it should do in advertising,” Greene told CNBC.
“What it should do is help create groundbreaking insights, unique execution to reach diverse and niche audiences, push boundaries on what ‘marketing’ is and deliver more brand differentiated, helpful and relevant personalized experiences, including deliver on the promise of hyper-personalization.”
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., left, and Emmanuel Macron, France’s president at the 2025 VivaTech conference in Paris, France, on Wednesday, June 11, 2025.
Nathan Laine | Bloomberg | Getty Images
Nvidia boss Jensen Huang has been on a tour of Europe this week, bringing excitement and intrigue to everywhere he visited.
His message was clear — Nvidia is the company that can help Europe build its artificial intelligence infrastructure so the region can take control of its own destiny with the transformative technology.
I’ve been in London and Paris this week following Huang around as he met with U.K. Prime Minister Keir Starmer, French President Emmanuel Macron, journalists, fans, analysts and gave a keynote at Nvidia’s GTC event in the capital of France.
Here’s the what I saw and the key things I learned.
At London Tech Week, the lines were long and the auditorium packed to hear him speak.
The GTC event in Paris was full too. It was like going to a music concert or sporting event. There were GTC Paris T-shirts on the back of every chair and even a merchandise store.
Nvidia GTC in Paris on 11 June 2025
Arjun Kharpal
The aura of Huang really struck me when, after a question-and-answer session with him and a room full of attendees, most people lined up to take pictures or selfies with him.
Macron and Starmer both wanted to be seen on stage with him.
Nvidia positions itself as Europe’s AI hope
Nvidia’s key product is its graphics processing units (GPU) that are used to train and execute AI applications.
But Huang has positioned Nvidia as more than a chip company. During the week, he described Nvidia as an infrastructure firm. He also said AI should be seen as infrastructure like electricity.
His pitch to all countries was that Nvidia could be the company that will help countries build out that infrastructure.
“We believe that in order to compete, in order to build a meaningful ecosystem, Europe needs to come together and build capacity that is joint,” Huang said during a speech at the Viva Tech conference in Paris on Wednesday.
Jensen Huang, CEO of Nvidia, speaks during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025.
Gonzalo Fuentes | Reuters
One of the most significant partnerships announced this week is between French startup Mistral and Nvidia to build a so-called AI cloud using the latter’s GPUs.
Huang spoke a lot during the week about “sovereign AI” — the concept of building data centers within a country’s borders that services its population rather than relying on servers located overseas. Among European policymakers and companies, this has been an important topic.
Huang also heaped praise on the U.K., France and Europe more broadly when it came to their potential in the AI industry.
China still behind but catching up
On Thursday, Huang decided to do a tour of Nvidia’s booth and I managed to catch him to get a few words on CNBC’s “Squawk Box Europe.”
A key topic of that discussion was China. Nvidia has not been able to sell its most advanced chips to China because of U.S. export controls and even less sophisticated semiconductors are being blocked. In its last quarterly results, Nvidia took a $4.5 billion hit on unsold inventory.
I asked Huang about how China was progressing with AI chips, in particular referencing Huawei, the Chinese tech giant that is trying to make semiconductor products to rival Nvidia.
Huang said Huawei is a generation behind Nvidia. But because there is lots of energy in China, Huawei can just use more chips to get results.
“If the United States doesn’t want to partake, participate in China, Huawei has got China covered, and Huawei has got everybody else covered,” Huang said.
In addition, Huang is concerned about the strategic importance of U.S. companies not having access to China.
“It’s even more important that the American technology stack is what AI developers around the world build on,” Huang said.
Just reading between the lines somewhat — Huang sees a world where Chinese AI tech advances. Some countries may decide to build their AI infrastructure with Chinese companies rather than American. That in turn could give Chinese companies a chance to be in the AI race.
Quantum, robotics and driverless is the future
Huang often uses public appearances to talk about the future.
I asked him about some of those areas he’s bullish on like robotics and driverless cars, technology that Nvidia’s products can power.
Huang told me this will be the “decade of” autonomous vehicles and robotics.
Nvidia boss Jensen Huang delivers a speech on stage talking about robotics.
Arjun Kharpal | CNBC
During his keynote at GTC Paris on Wednesday, he also address quantum computing, saying the technology is reaching “an inflection point.”
Quantum computers are widely believed to be able to solve complex problems that classic computers can’t. This could include things like discovering new drugs or materials.
In an aerial view, a Tesla showroom at 12845 N. US 183 Highway Service Road is seen after police were called for a suspicious device in Austin, Texas, on March 24, 2025.
Brandon Bell | Getty Images
With Elon Musk looking to June 22 as his tentative start date for Tesla’s pilot robotaxi service in Austin, Texas, protesters are voicing their opposition.
Public safety advocates and political protesters, upset with Musk’s work with the Trump administration, joined together in downtown Austin on Thursday to express their concerns about the robotaxi launch. Members of the Dawn Project, Tesla Takedown and Resist Austin say that Tesla’s partially automated driving systems have safety problems.
Tesla sells its cars with a standard Autopilot package, or a premium Full Self-Driving option (also known as FSD or FSD supervised), in the U.S. Automobiles with these systems, which include features like automatic lane keeping, steering and parking, have been involved in dozens of collisions, some fatal, according to data tracked by the National Highway Traffic Safety Administration.
Tesla’s robotaxis, which Musk showed off in a video clip on X earlier this week, are new versions of the company’s popular Model Y vehicles, equipped with a future release of Tesla’s FSD software. That “unsupervised” FSD, or robotaxi technology, is not yet available to the public.
Tesla critics with The Dawn Project, which calls itself a tech-safety and security education business, brought a version of Model Y with relatively recent FSD software (version 2025.14.9) to show residents of Austin how it works.
In their demonstration on Thursday, they showed how a Tesla with FSD engaged zoomed past a school bus with a stop sign held out and ran over a child-sized mannequin that they put in front of the vehicle.
Dawn Project CEO Dan O’Dowd also runs Green Hills Software, which sells technology to Tesla competitors, including Ford and Toyota.
Stephanie Gomez, who attended the demonstration, told CNBC that she didn’t like the role Musk had been playing in the government. Additionally, she said she has no confidence in Tesla’s safety standards and said there’s been a lack of transparency from Tesla regarding how its robotaxis will work.
Another protester, Silvia Revelis, said she also opposed Musk’s political activity, but that safety is the biggest concern.
“Citizens have not been able to get safety testing results,” she said. “Musk believes he’s above the law.”
Tesla didn’t immediately respond to a request for comment.