In recent years, artificial intelligence (AI) has been touted as a game-changer for the financial industry Proponents claim that AI can revolutionize everything from customer service to risk management, freeing up human employees to focus on higher-level tasks.

However, not everyone is convinced.

Edward J Achenes, head of generative AI at HSBC, recently spoke out about what he perceives as a significant issue in the industry: "success theater." Achenes suggests that many companies are failing to produce tangible results from their AI initiatives, instead relying on flashy demonstrations and superficial metrics to justify their investment.

In an interview with CNBC, Achenes explained that while there have been some notable successes in AI adoption, such as chatbots and basic automation tasks, the industry's overall track record is much more mixed "There are a lot of people who are making a lot of noise about what they're doing, but when you actually look under the hood, it's not delivering," he said.

Achenes's comments echo those of other AI experts who have cautioned that the hype surrounding AI can be misleading According to Financial Times, AI is still in its early days and requires significant investment in data infrastructure, talent, and process changes before it can truly deliver on its promises.

So what does this mean for financial institutions looking to leverage AI? First and foremost, they need to separate the wheat from the chaff and focus on projects that have a clear business case and measurable ROI This means cutting through the "success theater" and focusing on delivering tangible value to customers and shareholders.

It also means recognizing that AI is not a one-size-fits-all solution Different institutions will have different strengths, weaknesses, and opportunities for AI adoption As such, they should be willing to experiment and iterate, rather than trying to replicate a proven formula from another company.

Ultimately, the successful implementation of AI in finance will require a combination of technical expertise, business acumen, and a willingness to adapt and learn.

By being realistic about what AI can accomplish and focusing on delivering value, financial institutions can unlock its true potential and drive meaningful innovation forward.