‘ESG’ Loses Buzzword Throne to ‘AI’ in European Bank Earnings

Artificial intelligence has replaced sustainability as the latest buzzword for European banks.

For the first time in six years, the region’s bank executives used the term ‘AI’ more frequently than ‘ESG’ in discussing full-year results, according to a Bloomberg News analysis. While ‘AI’ references more than doubled, ‘ESG’ mentions tumbled by two-thirds compared with the previous year, the analysis of earnings call transcripts shows.

The change underscores how European banks are attaching increasing importance to boosting their AI capabilities as rapid advancements in the technology offer potential productivity gains. A US-led backlash against linking financial decisions to environmental, social ...