UBS CEO says AI investors had been pricing for ‘perfection’ until sector’s sharp correction

UBS chief executive Sergio Ermotti said a recent sharp correction in AI stocks reflected investors’ expectations that the sector would deliver results too quickly. He remains optimistic that AI can generate economic benefits, but says the timetable for achieving them has been exaggerated.

Ermotti spoke at a UBS conference in Sydney as concerns about US regulation and the infrastructure needed to support AI weighed on markets. He said UBS has slowed some of its own AI work while integrating Credit Suisse, which it agreed to acquire in 2023. UBS is also assessing how proposed Swiss capital requirements could affect its ability to compete.