AI at your bank
I’m in the NY office of a French bank and am so frustrated by how restrictive / slow we are adopting tech, the root cause being compliance.
For example, compliance said that we couldn’t use AI tools at first, but thankfully the head of our investment bank talked to someone at BNP who was like what are you talking about, we use it and found a solution from a compliance perspective, so I guess we are now trying to replicate.
Compliance has also deemed that microsoft collaboration / sharepoint isn’t possible to use for an M&A group to use because of Fed regulations (i guess the liability in the case that microsoft gets hacked and exposes client confidential information).
Can someone, for the sake of my sanity, please confirm if zero M&A teams in the US are able to access / use sharepoint (even for confidential material where an insider list is needed), or is our compliance team wrong? Or is someone just not asking that right questions, like maybe microsoft has a solution specifically for this?
It makes sense, if you think about it. For the most part, these tools are black box predictive models based purely on probabilities. Banks always adopt slower. My time on the trading floor, we still had quants/devs on Java versions older than I was.
Compliance is a bitch, but it's not nearly as bad as leaking data, and because all the best open source models are Chinese, you can't exactly go to your compliance and say you'll be hosting models locally and when they ask what you're using you say goddamn Kimi or Deepseek. You'd get wrecked.
Things are better at HFs and trading firms IME. They tend to move faster
We talk about the data leaking possibilities with these LLMs at my firm as well. What are your thoughts on the capability of american AI models to leak proprietary info? We have the enterprise license and of course they say they won't but how can one truly know that what someone inputs isn't being used by the AI to improve itself and its response quality. If I come up with some code for a model or strategy and feed it to GPT to help me optimize it or something, can't it now give that to some other user asking for help creating a model or strategy?
I think that’s the point of the enterprise plan - that it stores your Company’s data separately and doesn’t use it to train its model (or maybe doesn’t store it at all, not sure). If it does store the data somewhere, then yes the risk of the AI provider getting hacked is there.
you've got to live it up while you can, bc pretty soon AI is coming for your job. we demo a bunch of tools and some of them are scary (replace an analyst level) good.
We use sharepoint and the entire copilot suite across our company except for a couple of groups (who’s MDs don’t understand the closed loop nature of AI, and that once a document is uploaded to sharepoint AI can see it)
Ex-MBB, now in tech working on AI. This feels less like “regulation prevents AI” and more like “banks are using compliance as a blanket excuse because nobody wants to own the implementation risk.”
Obviously you cannot dump MNPI or client-confidential deal docs into random AI tools. But a locked-down enterprise setup with permissions, DLP, audit logs, retention, surveillance, and no-training vendor terms make it more real. Banks already trust plenty of systems with sensitive data. Long term, banks that figure this out with AI will have a real productivity edge.
At a MM. We have Gemini and co-pilot firm wide. Currently in pilot stage for Claude but being rolled out firm wide. Think they are going to switch over to Claude. They are also building an internal proprietary AI based on one of the large LLMs that sounds pretty nuts. We also have SharePoint but I personally don’t use it much.
We were honestly behind at one point but the bank caught up fast.
Just wait until they realize what the true cost of Claude is after 3-4 months. It’ll be pulled.
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