A lot of CEOs are highlighting AI initiatives on earnings calls with investors and analysts. Add Moody’s to the list.
The credit-rating firm provided a window into how generative AI could change its business
A lot of CEOs are highlighting AI initiatives on earnings calls with investors and analysts. Add Moody’s to the list.
The firm, which rates the creditworthiness of institutions including companies and governments, cited “GenAI” at least 33 times in its earnings call Tuesday. At a moment when generative artificial intelligence is going from buzz to actually helping companies drive revenue, that wasn’t enough to lift Moody’s stock, which fell almost 8% Tuesday after it missed earnings expectations.
But AI remains poised to disrupt the financial services industry. Here’s what Moody’s executives have said about how its different tools are using generative AI:
Moody’s president Michael West said the company sees generative AI as “an enabler to human judgment in the rating process.”
CEO Robert Fauber was quick to add that it will be “deliberate and transparent in the rating agency in terms of how we leverage generative AI.”
“We’re in dialogue with our regulators to make sure that they understand how we’re going to do that,” he said.
The earnings came as SEC chair Gary Gensler said in a speech at Yale Law School on Tuesday that public companies must clarify for investors what they mean when referring to AI. He said companies need to be specific about how they’re using it and the risks to operations, Bloomberg reports.
In the past, Gensler has warned about the dangers the technology could pose to financial stability and has expressed concerns about thousands of financial institutions using the same AI models.
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