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AI in capital markets: LSEG Financial Markets Connect 2024

Insights

AI for efficient, hyper-personalised client service

Personalisation in these early days of AI is a competitive differentiator for early adopters. At Singletrack, our customers are telling us they want to give clients the right content, and also ensure it’s in the medium they’re most likely to consume. We also explored how AI is going to force ecosystems to evolve, including how it can help businesses work together to provide the service clients need across a number of firms if necessary.

The future of finance

Where is AI technology right now from a practical perspective? How capital markets firms are actually using AI tools right now… or not using them? There was a lot of experience in the room, and it’s clear that AI really is a revolutionary change for the industry.

Here are the details:

  • 20 years ago, people knew what they wanted technology to do, but the tools didn’t exist yet. Today, the friction is in the opposite direction. AI is ready to be applied and tested, but there are managerial, commercial, and implementation problems standing in the way of implementation
  • Financial services as an industry is heavily regulated, but that regulation exists to protect participants. Regulation isn’t just a stumbling block, it can also be a security blanket to test applications of AI where possible
  • In fact, there’s risk in waiting for the perfect AI applications to emerge – that perfect application might not exist
  • Learning to appropriately engage with these powerful tools – to ask the right questions – will be critical as they grow more sophisticated
  • AI tools need rich, clean data to work. Firms need to get their client data in order or they will be left behind by the competition

AI and investment banking workflows

We also heard from banking professionals about what it’s like to work with AI tools right now, and what might be possible in the future.

Key takeaways included:

  • The most dramatic changes to date are at the junior levels. AI co-pilot technology is coming, but AI-backed tools are already rapidly changing a lot of qualitative work (deck building, etc.) 
  • Many firms are grappling with how to balance efficiency in traditional junior-level tasks with the value of these very tasks as training for future seniors. Doing more with less is attractive, but not at the cost of a strong team in the long term
  • Training junior bankers on recognising AI-generated red flags and mistakes will support faster adoption. There’s a cultural mistrust of AI technology and generative AI tools such as ChatGPT at the moment, which will diminish over time. Developing skills to check outputs will break through a major hurdle in implementing time-saving AI applications

 To learn about Singletrack’s suite of AI-backed tools purpose-built for capital markets workflows, get in touch now.

Brian Bock

Brian Bock

Published: 18/11/2024