Two articles by Markets Media caught our attention this week. Both highlight the growing use of AI by financial institutions – specifically in compliance, customer support, research, sales, and trading.
In the first piece, “75% of Financials to Use AI in the Next 12 Months”, Markets Media reviews a new report by Greenwich Associates, “AI: The Coming Disruption on Wall Street”.
The key takeaways from the report are:
- 75% of banks and financial services companies plan to leverage AI in their businesses within the next 12 months.
- Nearly 20% have already implemented AI, most commonly in research generation and customer support.
“That usage represents only the very tip of the iceberg, author Richard Johnson, Vice President of Market Structure and Technology at Greenwich Associates noted. Cognitive computing, he explained, has the ability to analyze and process vast quantities of data much more efficiently than a human can, enabling significant productivity enhancements.”
Markets Media also published an additional piece on the same subject, “AI: Not All About Alpha”, which reported on a panel, held during TABB Group’s FinTech Festival.
Whilst it was agreed that AI adoption by the buy-side is relatively low, the sell-side is more aligned to using AI in the middle- and back-office. The panel referenced BNY Mellon as an example, which is using AI to improve intelligent routing of email, credit and debit matching, as well as forecasting trade and settlement breaks.
The Bottom Line – AI continues to grab the headlines, but the technologies that enable its use should not be overlooked. Successful projects rely on the correct data being ingested, verified and cleansed before the AI process begins.