Generative AI

Impact

<ul class="list-ic vertical"> 
 <li> <span>1</span> <a>AI and DLT may widen the gap between underperformers and outperformers, per the report.</a> </li> 
 <li> <span>2</span> <a>These technologies could give benefits over a decade.&nbsp;</a> </li> 
</ul> 
<p>Artificial intelligence (AI), and digital ledger technologies (DLT) like blockchain could open new avenues in the credit issuing landscape. According to credit ratings agency Moody’s, the technologies may affect credit quality through five channels. Credit issuers’ response towards transformations will determine the bandwidth of the effects.</p> 
<h2 class="wp-block-heading" id="strong-proper-strategies-could-take-companies-a-long-way-strong"><strong>Proper Strategies Could Take Companies a Long Way</strong></h2> 
<p>Overall economic and financial impact is likely to be positive. While AI could transform multiple sectors, DLT will disrupt financial industries. The five channels the report notes include ‘new product offerings/revenue opportunities, efficiency gains/operating cost reductions, investment strategy and financing, regulation and policy changes, and <a href="https://www.thecoinrepublic.com/2023/09/07/luma-ai-usage-and-advantages-of-using-this-3d-model-constructor/" target="_blank" rel="noopener noreferrer nofollow">cybersecurity.</a>’</p> 
<p>Furthermore, handling the technologies better than their competitors will give the companies an edge. To exploit these new tech effectively, companies will need a proper roadmap and execution strategies. Consequently, AI and DLT may widen the gap between underperformers and outperformers as per the report.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" loading="lazy" width="1250" height="1120" src="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154.png" alt="AI And DLT Could Be Disruptive Technologies in Credit Landscape" class="wp-image-165843" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154.png 1250w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154-300x269.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154-1024x918.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154-768x688.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154-750x672.png 750w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-154-1140x1021.png 1140w" sizes="(max-width: 1250px) 100vw, 1250px"> 
  <figcaption class="wp-element-caption">
    Source: Moody’s Investors Service 
  </figcaption> 
 </figure> 
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<p>It can add to operational efficacies. Generative AI is easing workflows in writing, designing, coding and countless other activities. Moody’s report sheds light on the possibility of issuers predicting future events using non generative AI models. Moreover, DLT may provide single trusted records, replacing multiple databases.</p> 
<p>Automation through artificial intelligence could reduce expenses. However, integrating them will up the IT costs. Companies may not necessarily generate new revenue streams using AI. However, the technology can still enhance product sales. DLT could help capture untapped opportunities according to Moody’s.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" loading="lazy" width="1250" height="1046" src="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153.png" alt="AI And DLT Could Be Disruptive Technologies in Credit Landscape" class="wp-image-165842" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153.png 1250w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153-300x251.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153-1024x857.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153-768x643.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153-750x628.png 750w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-153-1140x954.png 1140w" sizes="(max-width: 1250px) 100vw, 1250px"> 
  <figcaption class="wp-element-caption">
    Source: Moody’s Investor Services 
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 </figure> 
</div> 
<p>AI may reduce time spent and expenses on everyday and manufacturing tasks. DLT can lower financing costs for issuers. However, there is no guarantee that investing in these technologies will only yield positive returns. New technologies can increase lender dependency on them, leading to service disruptions.</p> 
<h2 class="wp-block-heading" id="strong-ai-and-dlt-s-impact-is-far-reaching-strong"><strong>AI and DLT’s Impact is Far Reaching</strong></h2> 
<p>Moody’s have high hopes from AI and DLT. The report reads, “The impact of AI and DLT will reach far beyond corporate balance sheets. These transformative technologies will likely reshape entire sectors, causing established sectors to shrink or disappear altogether while creating new markets from scratch”.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter"> 
  <img decoding="async" loading="lazy" width="1250" height="1430" src="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155.png" alt="AI And DLT Could Be Disruptive Technologies in Credit Landscape" class="wp-image-165844" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155.png 1250w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155-262x300.png 262w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155-895x1024.png 895w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155-768x879.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155-750x858.png 750w, https://www.thecoinrepublic.com/wp-content/uploads/2023/09/image-155-1140x1304.png 1140w" sizes="(max-width: 1250px) 100vw, 1250px"> 
  <figcaption class="wp-element-caption">
    Source: Moody’s Investors Service 
  </figcaption> 
 </figure> 
</div> 
<p>The report says that both the technologies can transform entire industries. New markets could emerge using transformative technologies. <a href="https://www.thecoinrepublic.com/2023/09/07/paal-introduces-new-ai-tools-to-assist-crypto-traders/" target="_blank" rel="noopener noreferrer nofollow">DLT</a> is behind crypto and decentralized finance (DeFi). However, both the markets are uncharted territories and regulators are yet to produce a proper regulatory framework.</p> 
<p>The report also talks about potential gains in gross domestic product (GDP). However, it would take over a decade to realize the full benefits of these technologies. The company writes, “Past technological changes showed that the benefits of new technologies usually take time to spread across an entire economy.”</p>

AI And DLT Could Be Disruptive Technologies in Credit Landscape

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Thecoinrepublic.com

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