DBS Group

Wall Street saw its worst day since October 10th, with the Dow down 1.65%, S&P 500 down 1.66%, and Nasdaq plummeting 2.29%. Cooling AI enthusiasm, especially around Nvidia, Broadcom, and Oracle, contributed to the decline. Concerns about debt-funded AI development and uncertainty regarding a December Fed rate cut also weighed on the market. Conversely, DBS Bank projects significant revenue gains from its AI investments, expecting over $768 million USD in contributions this year.

DBS Group CEO Tan Su Shan states the bank is already seeing significant returns from its AI investments, unlike many firms skeptical about AI profitability. DBS has integrated AI for over a decade, using 1,500 models across 370 use cases. AI is expected to boost revenue by over S$1 billion this year, up from S$750 million in 2024. DBS is leveraging AI to enhance financial services for institutional clients, improve risk management, and provide personalized financial advice through AI assistants like “DBS Joy.” Ongoing investment and employee reskilling are crucial to maximizing AI’s potential.

DBS Group CEO Tan Su Shan warns investors to anticipate higher market volatility amid concerns about inflated valuations, especially in AI stocks like the “Magnificent Seven.” She highlights the systemic risk of capital concentration and suggests a 10-20% market correction is possible. Tan, echoing sentiments from other financial leaders, advocates diversification across portfolios, supply chains, and demand distribution, positioning Singapore as a “diversifier market” due to its stable financial and political environment.