xAI and Palantir Team to Promote Financial Services AI Use

xAI has teamed with Palantir to explore how financial services firms can employ AI.

The partnership, announced Tuesday (May 6), is an extension of an earlier collaboration announced in March between Palatir and holding company TWG Global. The companies say their effort is happening at a time when CEOs are recognizing the importance of artificial intelligence (AI), even though most companies remain stuck at the proof-of-concept stage.

“Some of the West’s most critical institutions are spending too much time navigating cobbled-together systems and not enough time leveraging the transformative power of AI to unlock enormous growth,” Palantir CEO/Co-founder Alex Karp said in a news release. “Placing AI at the core of operations empowers these companies to drive faster, more meaningful outcomes for customers and — consequently — generate far greater value for society.”

Mark Walter, TWG’s chairman and chief executive, added that AI’s potential can only be unlocked via a major shift in the approach to its integration.

“Namely, it needs to be managed by the very highest levels of the C-suite rather than siloed in a business’s technology group where it has traditionally resided,” he said.

The partnership’s offerings include an “agentic workforce,” which the companies describe as “modular AI agents tailored to specific business processes,” with a “deep focus on orchestration across and between functions” to deliver things like revenue generation to cost reduction.

Research by PYMNTS Intelligence has found that 72% of finance leaders say they actively use AI in their operations, for things such as fraud detection (64%) to customer onboarding automation (42%). The enthusiasm for the technology doesn’t end there; nearly all banking boards have OK’d generative AI initiatives, illustrating a recognition of its strategic importance.

Leaders see artificial intelligence as a tool for efficiency and a way to foster hyper-personalized customer experiences, a vital factor as 50% of retail banking consumers are not satisfied with their banking options. This increasing reliance on AI underscores a key moment where banks must evolve or risk being overshadowed by nimble Big Tech rivals.

“Despite the promising landscape, banks face significant hurdles in effectively integrating AI into their systems,” PYMNTS wrote. “Consumer skepticism remains a major barrier; approximately 20% of U.S. consumers see AI tools as a potential security risk, and 14% refuse to engage with AI-driven financial services. Such mistrust is compounded by internal challenges; 37% of banks worry that AI could heighten their vulnerability to cyberattacks.”

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