UBS Chief Executive Sergio Ermotti has warned that investors had set excessively high expectations for artificial intelligence (AI) companies before a recent market correction forced a reassessment of the sector.
Speaking at a conference in Sydney, Ermotti said markets had been pricing in near-perfect outcomes, despite uncertainties over how quickly AI investments would translate into significant financial returns.
He acknowledged the transformative potential of artificial intelligence but suggested that investors may have underestimated the time required for the technology to deliver its full economic benefits.
The comments come as AI-related stocks face increased scrutiny over their valuations, with companies continuing to spend heavily on data centres, computing infrastructure and AI development.
Concerns about possible regulatory changes in the United States have added to market uncertainty, although technology shares recently staged a recovery.
Ermotti also disclosed that UBS had experienced some delays in implementing AI across its operations, partly due to the ongoing integration of Credit Suisse, which the Swiss bank acquired in 2023.
The banking industry is increasingly exploring AI applications to improve productivity, automate processes and strengthen customer services.
However, the latest market correction highlights growing investor attention to the financial returns of AI investments rather than expectations of future growth alone.
Despite the volatility, Ermotti’s comments point to continued confidence in AI’s long-term potential, while emphasising the need for more realistic expectations about the pace of its commercial impact.
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