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CBA eyes AI to slash call centre costs, fuel profit

September 17, 2024

Good morning.

It has started. Aussie workers’ biggest fears (and investors’ dreams) are coming to life as Australia’s largest ASX-listed company, the Commonwealth Bank, takes overt steps to replace its call centre staff with AI.

Trials of the ChatGPT-inspired "Hey CommBank" platform are underway, and while CBA positions this as cutting-edge innovation, it's causing an uproar. The Finance Sector Union slammed the plan as "disrespectful," accusing the bank of sacrificing jobs for profit.

Despite the backlash, CBA sees AI as a game-changer, and analysts predict major savings.

ASX as at market close. Commodities and crypto in USD.

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Market movers

Alcoa shares jumped nearly 6% on Monday after it announced plans to offload a chunk of its Saudi JV with Ma’aden for US$1.1b ($1.6b). The move paves the way for a leaner, meaner future for the aluminium giant, steered by CEO William Oplinger.

The quick sync

  • Australia's war on Big Tech has spread to the US and EU. It's leading fund managers to rethink their exposure to the sector. (Capital Brief)

  • ASX-listed EV play Novonix defers equity raise, eyes partnerships and offtake deals. (Capital Brief)

  • Thomson Geer’s Adrian Tembel sees the firm as a challenger brand with a game plan of poaching, lateral hires and high-profile mergers.  (Capital Brief)

  • NYC startup Mosaic touts modelling tool to rescue junior bankers from spreadsheet purgatory. (Bloomberg)

  • Star is set to be bailed out by its lenders under a 5-point plan to give CEO Steve McCann the chance to turn around its performance without selling casinos. (AFR)

Trading floor

M&A

  • Phil King’s Regal homes in on biggest M&A target to date: Platinum. (AFR)

  • Austal's US subsidiary has won a US$450m contract from General Dynamics Electric Boat to expand its Alabama shipyard, supporting the US Navy's submarine production efforts. (Capital Brief)

  • Odyssey Investment Partners is selling its 9% stake in $3.5bn AUB as a two-year escrow period ends. (The Australian)

  • Alcoa's shares increased after it agreed to sell a 25.1% stake in its joint venture with Ma'aden. (Capital Brief)

  • US bond insurer BAM Mutual has entered Australia, targeting energy transition and social infrastructure projects. (AFR)

  • Morgan Stanley raised HUB24's price target by 9.7%, citing its strong growth in funds under administration and market share gains. (Capital Brief)

  • IGO is exploring the purchase of Rio Tinto’s Winu copper-gold project in Western Australia, as it shifts focus from lithium. (The Australian)

  • P&N Bank has scrapped its merger with Beyond Bank after it was revealed that Beyond's CEO, Jake Bromwich, was removed from Westpac due to fraud allegations linked to his time at RAMS Home Loans. (AFR)

  • Mineral Resources may be considering selling its energy business, with potential interest from Beach Energy, Mitsui, and Hancock Energy. (Capital Brief)

  • Partners is eyeing a bid for Platinum Asset Management, its biggest M&A target yet. (AFR)

  • GoZero Group will become Australia’s largest bus manufacturer by acquiring BusTech's operations in Queensland and South Australia. (BNA)

Capital Markets

  • Synlait Milk has secured new bank refinancing, contingent on conditions like equity raise proceeds, as part of its recovery plan to reduce debt. (Capital Brief)

  • Auckland International Airport has announced a NZ$1.4bn equity raise to fund the construction of a new domestic jet terminal. (Capital Brief)

  • Scalare will push forward with its backdoor ASX listing, addressing ASIC's concerns over its prospectus. (Capital Brief)

VC

  • Kismet, a Melbourne healthcare start-up, has secured $32.5m in seed funding, with major contributions from Prosus, MassMutual, and Airtree. (AFR)

  • Olivia Orchowski’s femtech startup rebranded from Femtek to Kyri after finding the original name too generic. (Startup Daily)

People moves

  • Thierry Breton resigned as European Commissioner after Ursula von der Leyen requested France withdraw his candidacy for the next commission term, offering a more influential future portfolio instead. (Capital Brief)

  • New Tabcorp CEO Gillon McLachlan has fallen short of cost-cutting and market share targets, leading to a significant investor revolt. (AFR)

☝️ Know about a deal or people move we don’t? Hit reply.

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