Brendan

Brendan, on behalf of Manav Patnaik, asked about the pros and cons of AI in Moody's Analytics business, specifically regarding seat-based exposure in contracts and feedback from key financial services customers.

Answer

Rob Fauber, President and Chief Executive Officer of Moody's Corporation, explained that seat-based exposure is not typical for their contracts and AI will not change this. He highlighted Moody's strategy of embedding AI into workflow solutions, launching agentic AI solutions like smart APIs and MCP servers built on their extensive data estate, and developing specialized workflow agents. Fauber emphasized that AI is an 'unlock opportunity' to monetize content across various platforms and customer workflows.

Brendan (on behalf of Manav Patnaik) inquired about the pros and cons of AI in Moody's Analytics business, specifically regarding seat-based exposure and feedback from key financial services customers on AI adoption.

Answer

Rob Fauber, President and Chief Executive Officer, explained that seat-based exposure is not typical for Moody's contracts and AI will be no different. He highlighted embedding AI into workflows, launching agentic AI solutions, smart APIs, and domain-specific agents leveraging Moody's proprietary data, positioning AI as an unlock opportunity to monetize content across various customer platforms and internal workflows.

Brendan, on for Manav Patnaik, sought to better understand the revenue delivery timing impact in North America Finance Solutions and asked for an update on the performance of the Credibility business.

Answer

CFO Bryan Hipsher clarified that some timing shifts in revenue recognition occurred but highlighted that strong performance in areas like supply chain risk management contributed to the results. Regarding the Credibility business, he and CEO Anthony Jabbour noted that it achieved slight growth in the quarter, a positive turn attributed to new initiatives like the 'moneyback guarantee' program.