Balancing contrasts: GenAI hype versus reality, BNPL throws "fintech for good" off-kilter, and our environmental tipping point?
GenAI and $340bn in bank profits in only seven steps.
Artwork of the day: Composition with Red, Blue and Yellow, Piet Mondrian 1930
In 1920, Mondrian found his own style, which he dubbed ‘Neoplasticism’. In the construction of the picture, this process relied entirely on vertical and horizontal lines and the use of the primary colours red, blue, and yellow. The aesthetic objective was to obtain an arrangement of balanced contrasts: non-colours/primary colours; vertical/horizontal. Mondrian sought to give expression to the ‘universal’ through the absolute harmony of the individual pictorial elements.
Today’s newsletter is devoted to the concept of balance. Mondrian’s artistic objective was to “balanced contrasts” between colors and the vertical and horizontal.
Our new romance with GenAI is most definitely a question of balance. I, for one, think that our relationship is currently "unbalanced," and that's why today's first story analyzes AI's economic impact in a historical context. Looking back at history will help us regain our balance, lest we actually believe our own hype.
Speaking of hype, let's look at an example. In the second story, McKinsey promises that GenAI will add $340 billion to banks' bottom line if they follow the seven steps McKinsey graciously outlines. Do you believe it? I don't, and that's why I was relentlessly sarcastic when reviewing the article.
For the record, I love AI, I hate the hype.
And if ever there was an example of "imbalance," it would be BNPL. Touted as one of fintech's greatest achievements, it actually preys on the young, lower-income, and less educated. Does that sound balanced to you? BNPL smashes fintech's mythology that it is “for good.”
The banking outlook for 2024 also could use some balance, as their are storms on the horizon. The problem isn’t just that there is no straight path to a certain digital future, but their very business models are being threatened. It’s almost enough to make you feel sorry for bankers. I don’t.
For the most important “balancing act” of all we look at “Tipping Points” from the Dubai COP28 meeting, which suggests we stop all fossil fuel emissions by 2050. Here too, balance is missing. Most will agree that we need to moderate our impact on the planet, but cutting out fossil fuels in 30 years will likely cause as much human suffering as it hopes to prevent.
Every story today is about balance or lack of it. We all could use a bit more balance.
What do you think?
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AI's Economic Impact: Less than the Hype
Consultant EY Parthenon is the only adult in the AI room! Combating the insane hype over AI they look at how earlier tech revolutions played out. What they find is that while there is no doubt that the AI revolution is significant, it may not be quite as explosive as the hype promises.
GenAI Could Add up to $340 billion to Bank Profits....IF they get it right!
View online: here Or download PDF McKinsey is predicting big profits for banks using GenAI! This isn’t their first of what I like to call “big numbers” reports for AI and won’t be their last. Mckinsey first touts big numbers then hits readers with the best sales pitch since, “Buy two get one free.” McKinsey says all it takes is “seven dimensions” and a M…
BNPL: The Fintech Industry's Dirty Secret
Buy Now Pay Later or BNPL is the rage of the fintech community, but sadly it is the best example we have of how “fintech for good.” is a myth. Viewed as an easy way of making things affordable and a stellar example of “embedded finance,” BNPL rapidly became a hero in the fintech world. With VC money pouring in and valuations to the moon, nothing could …
Banking Outlook 2024: Tornados, Hurricanes and Typhoons, Oh My!
All banks face big choices ahead. It’s not enough to say that banks must “go digital”; bankers know that by now. The problem isn’t just that there is no straight path to a certain digital future and their very business models are being threatened. It’s almost enough to make you feel sorry for bankers. I don’t. In the decade prior, most bankers watche…
Tipping Points Pose A Grave Threat to Humanity As Does the Solution
The “Global Tipping Points Report 2023” released at Dubai's COP28 UN climate summit is a scary read! If you had difficulty sleeping before reading this report, you most definitely won’t sleep after reading it The report warns that climate change “tipping points” will bring rapid change and present a grave threat to humanity. The recommendation is to ph…
One more that should catch your eye
Deloitte’s 2024 Tech Trends covers AI and so much more! Don’t miss it.
Deloitte launches the first of what is bound to be a long string of reports on tech trends for 2024 from consultants. To Deloitte’s credit, they have a nicer hook than most in viewing tech.
Deloitte’s “hook “ is how it views tech as three elevating forces and three grounding forces.
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