UBS says it does not permit the use of external AI models for client transactions

ZURICH, Oct 27 : UBS will not allow the use of external AI models to execute actions on behalf of clients, CEO Sergio Ermotti said on Tuesday.

Concerns that sophisticated AI agents could harm the financial system have risen within the banking industry. Major US banks have been blocking third-party AI agents' access to customer accounts, people familiar with the matter have said.

"You heard recently some banks are being exposed to potential misbehaviors of models in managing clients' accounts and shifting deposits and optimizing deposits," Ermotti told a science conference. "We are not allowing models to enter into the bank and do that."

"When you talk about AI, the most important issue right now is to make sure that we don't get AI models that drive outcomes for clients in a black box," Ermotti said.

UBS' integration of fallen rival Credit Suisse, which it acquired in 2023, forced it to slow its deployment of AI somewhat, but now the lender can put even more emphasis on technology, Ermotti added. 

"I'm glad that we are almost over with the integration and therefore we can now put even more emphasis around technology and how we can help the bank become more effective and efficient."