The financial services industry is deploying generative AI throughout operations and investment banking is realizing high returns.
Agentic AI can enhance operations across all financial institutions including:
- Private equity shops; and
Chip giant Nvidia, for one, has seen a sharp rise in the use of its agentic AI model application among financial services firms and is working to provide more computing power to drive adoption across the industry, Kevin Levitt, who leads global business development for financial services at the company, told Bank Automation News.
Financial services is a leading vertical at Nvidia, Levitt said.
“FIs have a long track record of adopting and integrating new technology. … They know how to integrate these new technologies into their functions and to find returns on them.”
AI agents assist analysts
One of the most successful gen AI use cases within financial services has been assisting analysts at investment houses generate equities reports, Levitt said.
“They’re using these [AI] agents to cover specific equities and update research reports on those stocks,” Levitt said. “The agents can handle 10 times the previous volume of documents than a human could, and they’re actually extracting information with greater accuracy.”
One investment house that Levitt did not identify reported that it has “reduced the report generation time from 40 hours down to 15 minutes,” he said. “That’s a 160X improvement.”
Higher order tasks left for humans
Chris Ackerson, senior vice president of product at AI-driven tech provider AlphaSense, agrees. He also told BAN that many financial institutions are using gen AI-driven assistants to help junior bankers write PowerPoint decks and reports.
AlphaSense’s gen AI tool scans the internet, including for specific information such as SEC filings, to find pertinent information for the analyst’s report, he said.
“Traditionally it would have taken many hours or maybe even days to find the right information and synthesize it,” Ackerson said. But with gen AI “that [process] can be automated and analysts can focus on higher order tasks.”
The tool is multidimensional, allowing it to be used to conduct due diligence for M&A activities, another time-consuming activity for FIs, he said.
Nearly 80% of the world’s top asset management firms use AlphaSense’s AI-driven solution, including Goldman Sachs, J.P. Morgan and Morgan Stanley, Ackerson said.
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