AI is a transformational technology worth investing in — but investors must be selective when investing in data centers, according to the head of one of the world's biggest banks.
Speaking to CNBC's Dan Murphy on Tuesday, HSBC CEO Georges Elhedery called artificial intelligence "a major enabler to re-engineer and reimagine all our businesses, all our activities."
"It's going to put a lot of power back in the hands of our colleagues because of the level of productivity it gives them, so it's going to be transformational, and we're certainly very much on a journey to adopt it," he said, adding that AI would help to "re-engineer the bank."
But when it comes to investing in infrastructure underpinning the technology, he advised discernment over an all-in approach.
"One has to be selective," Elhedery said. "You have to look at the quality of the tenancy agreements. You have to look at the pricing of these contracts. Not all of them are of that level of virtuosity that you can support strongly. Some of them may be more challenging."