In the tech world, hype ebbs and flows. Over the decades, new technologies have frequently captured imaginations only to be superseded by something newer and shinier. However, an innovation that bucks this trend is Generative AI – a technology that has captured the global conversation and will continue to shape the narrative across industries for decades to come. This time, the hype is real.
More than allowing us to frantically source “original, romantic gift ideas” on Valentine’s Day, the technology is set to transform our lives in a more profound (and arguably more practical) way – particularly for those working in capital markets. From automating mundane time-consuming tasks, to improving analytics and enhancing risk processes – AI’s value is in allowing traders and risk managers to concentrate on what they do best: managing money.
There have been early AI adopters in financial services, but Gen AI is not a simple ‘plug and play’. Data is its lifeblood and therefore needs to be robust, consistent and centralized from the beginning. After all – garbage in, garbage out.
A part of my job that I love is sitting down with clients across the globe to discuss how technology can take their businesses to the next level and then making it a reality. Being in the room in the early years of this technological revolution has given us unique insights into AI’s opportunities but also how to overcome barriers to entry – here’s what we have learned:
Traders and risk managers absolutely can work smarter and faster with Generative AI!
The fundamental argument for AI adoption is that without it, the working lives of professional across financial services businesses are harder than they have to be – like an accountant using an abacus instead of a calculator. The breadth and depth of its applications make widespread adoption inevitable – from increasing efficiencies, retaining talent, mitigating risk and ultimately making better decisions.
The consistent theme throughout our client discussions is how to elevate data to become the central ‘hub’ of effective AI systems with core functionalities or ‘spokes’ that serve a range of purposes across the organization.
Automation through Generative AI provides a solid path to increased productivity of traders and risk managers
Firms want to lessen the administrative burden on their teams and reclaim dead hours consigned to mundane, repetitive (yet essential) tasks. From the front to the back office, understanding what exactly needs to be automated allows firms to map the data needed to mechanize these tasks. Our systems, for example, can save 4,000 hours for one repetitive task at just 3% of the traditional cost required to execute this task.
The expectation is to apply the same approach and solution to streamline these tasks for traders, compliance officers, relationship managers or risk managers directly in our systems – without the need to manually construct an answer to an inquiry or even the inquiry itself.
Drawing an effective blueprint: Skip the POC and mobilize concrete projects to deliver real ROI
Generative AI is a proven technology whose transformative potential has become indisputable. As a growing number of firms explore the technology, there is no time to waste. We are beyond the need for time-consuming proofs of concept. Chin scratching and pontificating are unlikely to yield any tangible benefits for businesses exploring whether to take the plunge – the argument has already been won. Instead, time and attention would be better allocated to gathering a firm’s most motivated, capable people to lay the groundwork for implementation – ensuring that the right data and technology is in place to embed this powerful new force across daily operations.
The scale of the change required to tap into these game-changing benefits can be daunting. However, help is at hand – seasoned experts who routinely create effective strategies that source, aggregate and deliver the data required to make trading and risk management technology excel exists and is at your fingertips. Imagine a world where, at the most basic level, the hours consigned to mundane repetitive tasks are reclaimed for everyone from traders to compliance and risk managers. The questions is, why imagine it? You have the data, technology and expertise needed to make this a reality in front of you. So, why wait?
Harnessing Generative AI does not mean reinventing the wheel
