Commonwealth Bank of Australia has provided clarification regarding remarks made by the bank’s chairman at its recent general meeting, specifically focused on the integration of renewable energy and water usage in relation to its artificial intelligence (AI) initiatives.
The bank sought to address concerns raised by investors who expressed skepticism about the sustainability of the computing and water resources that underlie its AI operations. “CBA’s current use of AI is not exclusively reliant on renewable energy,” a spokesperson emphasized. “As indicated in CBA’s 2024 Climate Report, we purchase the equivalent of 100% renewable electricity for our Australian operations, which includes the energy consumed by our AI-related activities in local data centers.”
The spokesman further explained, “However, a significant portion of our AI computational capacity is sourced from third-party providers. Many of these partners are committed to utilizing renewable or low-emission energy sources. We also strive to minimize our water usage and report our water consumption annually in relation to both commercial and data center operations.”
For several years, the bank has leveraged AI technology to enhance customer protection against fraud and scams, as well as to identify incidents of technology-facilitated abuse. In October 2022, the institution disclosed its exploration of generative AI to create ‘synthetic customers’ that can mimic human behaviors for product and service testing.
In a further development in September, the bank announced a partnership with Amazon Web Services, resulting in the creation of an internal ‘AI Factory’ aimed at accelerating the deployment of generative AI solutions. Additionally, reports suggest that the bank is piloting a ChatGPT-style AI chatbot, which may eventually replace a significant portion of local call center staff.
For those interested in the evolving challenges and opportunities presented by artificial intelligence in the banking sector, Finextra will host its inaugural NextGenAI conference on November 26, 2024. Registration details can be found on their website.