For many technologists, 2023 was the year that AI for capital markets leaped the chasm from theoretical to practical. Between OpenAI, Google and others, hardly a day passed without seemingly another “important development” in the category. For those of us in capital markets, the opportunities are promising and will impact our businesses sooner rather than later.
To be clear, AI has increasingly been utilized by hedge funds for several years, admittedly to mixed results. More recent developments in AI apply the technology to a wider array of tasks, many of which are decidedly easier than outperforming the market.
In our recent eBook, 2024 Trends in Intelligent Automation for Capital Markets, we wrote about this important development:
One significant trend that will continue in 2024 is the increasing utilization of AI and machine learning to extract structured data from unstructured input files, such as PDF documents. This development will have a profound impact on how financial data is processed, making it more efficient and insightful.
Concurrently, the integration of large language models (LLMs) into capital market workflows will revolutionize natural language understanding. These models will enable automation systems to grasp nuances and context in financial reports, news articles, and regulatory filings, significantly enhancing their ability to make
informed decisions.This combined power of AI-ML and LLMs will not only streamline capital market operations but also empower financial professionals with more accurate and timely information. It will become a crucial competitive advantage in areas like algorithmic trading, risk assessment, and compliance monitoring.
In sum, AI for capital markets is used to fuel better returns while simultaneously alleviating back-office bottlenecks.
AI for capital markets is one of the trends impacting intelligent automations for 2024, but it’s not the only one! Fill out the form for immediate access to the eBook, 2024 Trends in Intelligent Automation for Capital Markets.
