GenAI is dramatically shifting how leaders are charting the course for their organisations

Executives say that generative AI is already having a significant impact on how they are charting the course for their organisations, according to a new survey by KPMG. The vast majority say that investments will increase with positive return on investment (ROI) expected in the next three years.

The survey of 225 senior business leaders at companies with US$1bn or more in revenue found that the majority are already seeing the impact of GenAI on their business: 71% are leveraging data in decision-making, 52% say it is shaping competitive positioning, and 47% say it is opening new revenue opportunities.

Respondents also weighed in on their planned investments and anticipated impact in the next three years. More than four in every five (83%) believe that GenAI investments will increase over the next three years. Executive management says revenue growth is the top goal for GenAI investment, while the rest of the respondents say their top goal is productivity. Just over three-quarters (78%) are confident in the ROI of planned investments in GenAI over the next 1-3 years,  including 11% who are highly confident. ROI is defined by revenue growth, profitability, cost savings, efficiency, employee engagement, and more. A quarter (24%) plan to integrate generative AI deeply into business processes and strategy, while 61% plan to expand the application scope of current GenAI initiatives. Some 55% plan to introduce GenAI into new business functions, and 55% plan to invest in upskilling employees, recognising the importance of preparing their workforce for the future.

In terms of functional integration, the survey found that IT/technology has the highest integration of GenAI, with 66% of organisations having fully integrated or in the process of executing a holistic GenAI programme, followed by operations at 53% and marketing and sales at 48%. The top purposes for GenAI utilisation include IT query support and assistance (45%), demand forecasting (39%), and personalised marketing messages (41%).

When it comes to the workforce, the survey found just 16% are highly equipped and capable across all areas necessary for GenAI utilisation, while 78% are moderately equipped. Over two-thirds (69%) are currently training their current workforce in GenAI, and 61% are actively hiring new talent to support their GenAI initiatives.

Leaders also report that their employees are productively using the time saved by using GenAI, with strategic planning and decision-making (43%), creative and innovative projects (40%), and learning and skill development (40%) as the top-cited applications of their new-found time.

When it comes to executive leadership of their organisation’s GenAI strategies, 8% say they have already assigned a dedicated chief AI officer position to lead their efforts, while 37% plan to do so.

As the use of GenAI scales, leaders also remain focused on risk management and mitigation, with more than half (56%) citing risk as a highly significant focus. Survey participants indicate that cybersecurity (79%) and data quality (66%) are the key areas of focus for current GenAI risk mitigation efforts. They also say that “deploying ethical AI frameworks” and “implementing stringent data privacy measures” are essential in managing GenAI risks.

Organisations continue to monitor the evolving AI regulatory environment, with 63% anticipating more stringent data privacy requirements in the future. As a result, 60% are actively reviewing and updating their data handling practices. More than half (54%) expect AI regulation to increase costs for their organisation.

 

The huge impacts of the yen carry trade  

The rapid unwinding of the Japanese yen carry trade has sent shock waves through global markets. A surprise rate hike from the Bank of Japan, combined with the prospect of more rapid cuts by the Federal Reserve, narrowed the spread that investors were earning by borrowing in Japan's low-yielding currency to invest in higher-yielding currencies like the US dollar and the Mexican peso. 

“When you have markets at a high level, [and] when you have particular trades that are very highly crowded and concentrated, it doesn't take very much to move things the other way,” Kamakshya Trivedi, head of Global Foreign Exchange, Interest Rates, and Emerging Markets Strategy with Goldman Sachs Research, commented on the bank’s Exchanges podcast.

“There were some genuine fundamental reasons for some degree of unwind in the yen carry trade specifically that we talked about — some genuine fundamental shifts in the macroeconomic picture in Japan and the US,” Trivedi said. “But some of the broader volatility does feel to me like it's a few different things that came together in a perfect storm.” 

Many faster-moving investors, such as hedge funds, dumped out of the trade around the same time, according to Praneet Shah, co-head of Global G10 FX Options Trading with Goldman Sachs Global Banking & Markets. As a result, several strategies correlated to the yen carry trade suffered rapid exits as well. 

“You have this negative feedback loop,” Shah said. He explained that the rapid unwind of the yen carry trade led to a “position purge…that ended up in positions needing to be pared down across the board.” For that reason, the swift move in the yen “had a pretty widespread impact across other markets.”

 

Adyen and BMW expand e-commerce collaboration to POS

Adyen and the BMW Group have extended their payment partnership following a successful global e-commerce collaboration where Adyen developed customised payment solutions to meet BMW Group's customer engagement and shopping experience requirements. 

The integration of Adyen's point-of-sale (POS) solutions into the BMW ecosystem now enables the car group to provide a seamless and best-in-class payment experience also in an offline context for its customers at BMW Welt and the BMW Museum.

Adyen has been the BMW Group's chosen payment partner for global e-commerce in 36 countries for several years. Adyen processes credit card payments for the ConnectedDrive Store in relevant markets such as Europe, Australia, Malaysia, Singapore, Korea, Japan and Brazil. Adyen’s globally standardised platform can also meet the individual local market requirements of the BMW Group in a targeted manner and offer the locally preferred payment methods in each case. iDeal in the Netherlands, TWINT in Switzerland, Swish in Sweden and many other local payment methods are also available to BMW customers.

In a statement, Adyen says there are a number of benefits to be gained by connecting online and offline channels on its platform, such as unified reporting capabilities across both channels. In addition, the payments firm offers functions such as integrated analysis tools and real-time transaction overviews that enable the BMW Group to understand customers' payment preferences and make informed business decisions. 

 

Deutsche Bank finances the construction of the Goorambat East Solar Farm

Deutsche Bank has closed an AU$348m debt and bank guarantee facility for Goorambat East Solar Farm, acting as the initial financer, bank guarantee facility provider, and hedge provider on this transaction.

The 250MW Goorambat East Solar Farm is being developed by ENGIE ANZ. Construction and commissioning of the 250 MW solar farm is expected to be finished in 2026. This marks the 23rd renewable asset that Deutsche Bank has project financed in Australia since 2021.

Once completed, at its maximum capacity, the solar farm could generate enough electricity to power the equivalent of 105,000 average Victorian homes, helping to bolster the state's energy security. 

“ENGIE’s Goorambat East Solar Farm project represents a significant new private investment into regional Victoria and will create approximately 250 new jobs during the construction phase and a community benefit fund designed to deliver long-term benefits to Goorambat and surrounding communities,” commented Laura Caspari, Managing Director of Renewables at ENGIE ANZ.

 

FIS enables P2P payment capabilities within digital banking platforms

FIS has announced it is making its Neural Payments solution to clients, expanding the availability of peer-to-peer (P2P) payments by leveraging the company’s global scale and NYCE debit rails to bring this capability to a wider range of institutions.

Neural Payments’ platform enables bank customers to transfer money from their account to anyone, regardless of whether the recipient’s institution utilises Neural Payments and without the need to download a third-party app or register a new card. Payments can be settled via popular mobile wallets and debit card; with FedNow, and The Clearing House RTP available now. Recipients can claim their payment within seconds after funds are sent.

FIS will enable its financial institution clients to integrate Neural Payments’ white-label solution within the institution’s mobile banking app, so users will not need to visit a third party to send money. For conventional closed loop payments, linked debit accounts are settled in real-time within FIS clients’ existing products.

“A recent FIS UK survey shows that mobile banking capabilities are the top reason for every generation’s loyalty to their primary bank,” said Chris Como, Head of Cards and Money Movement at FIS. “This combination of our industry reach and our NYCE debit rails with Neural Payments’ innovative technology will greatly help streamline money movement for today’s economy and the increasingly digital consumer.”

 

ANZ and Microsoft launch AI immersion centre in Melbourne

ANZ is to partner with Microsoft to launch an AI Immersion Centre at the bank’s Melbourne headquarters. The bank says that the facility is a first for the banking sector in Australia and New Zealand. It plans to send 3,000 leaders through it over the next 12 months to accelerate AI adoption at scale.

The AI Immersion Centre should help more ANZ leaders to understand what is possible and how to use generative AI safely through hands-on learning experiences. To support this, ANZ has purchased 3,000 Copilot for Microsoft 365 licences.

Microsoft and LinkedIn’s 2024 Work Trend Index shows Australia and New Zealand are among the strongest adopters of generative AI in the workplace. More than four out of every five (84%) employees use the technology at work – higher than the global average of 75% – and employees often are not waiting to be formally trained or introduced to the tools via their IT departments and leadership teams.

The AI Immersion Centre is designed to enable the bank’s senior leaders to better support adoption and innovation by their teams and to transform banking services. This upskilling of leaders is part of a bank wide programme to embrace the AI enabled future.