Sergio Ermotti, CEO of UBS (UBS), said that the pullback in the artificial intelligence (AI) sector is healthy, but geopolitical volatility is a greater risk that investors should be watching. UBS reported second-quarter pre-tax profit of $3.6 billion, up 64% year-over-year, with net income of $2.8 billion, in line with analysts’ expectations.Ermotti noted that while geopolitical tensions may present temporary headwinds, UBS business momentum remains strong, with robust performance in investment banking, mergers and acquisitions, and capital markets. He also mentioned that, given the pace and scope of growth in AI market valuations and concentration over the past three to four months, the pullback was to be expected, and he advised clients to diversify their investments.