Franklin Templeton CEO: ETFs and Mutual Funds to Shift to Blockchain, Caution Urged on Generative AI

Jenny Johnson, CEO of Franklin Templeton, emphasised the firm's support for blockchain technology during an interview at the Milken Institute Global Conference. Johnson highlighted the efficiency and cost-saving benefits of blockchain, citing a successful experiment comparing traditional methods with blockchain for processing account records. She predicted that ETFs and mutual funds would eventually transition to blockchain due to its ability to streamline data verification processes and provide a single source of truth. Johnson also discussed the potential of generative artificial intelligence (AI), likening it to a student excelling in certain areas but struggling in others. While acknowledging the value of AI systems, she emphasised the need for caution and highlighted Franklin Templeton's partnership with Microsoft to develop AI-powered solutions, including a sales assistant. Additionally, Johnson discussed the potential of AI-driven translation services to address language barriers in finance.