Artificial Intelligence Taking Analyst Job
Been hearing a lot about how AI is going to be able to do analyst duties. Is this only going to happen at BB or will it also happen with Boutiques. What have people heard / are seeing now?
I know people and they told me that banks are training their own AI model on their own proprietary data. So banks are not going use ChatGPT or any public-available commercial bot. They will use their own AI bot, although the underlying technology will be catered by Microsoft Cloud / Google Cloud / Meta llma which connects the training data to the neural-network model which is similar to the model used by ChatGPT . The AI is trained on past deal materials ( think decades of deal pitch decks, financial reports, client emails etc ) and then fine-tuned by a few selected senior people. The data security & confidentiality problem has been solved by collaborating with Microsoft. Since Microsoft owns Excel and Outlook and PPT and banks have been using those for decades, so sharing confidential data with Microsoft is a problem already solved. They have trained many different AI agents. There is one AI agent specifically for middle-office roles ( code generations ) and then several other AI agents for front office roles respectively — one for banking, one for equity research, one for quant. And there will be an AI agent for each software — one for PPT, one for Excel, one for outlook. There will be an AI that generate PPT deck given format and framework. Some AIs will be embedded within the softwares that bank already uses — will be a plugin to Excel & PPT & Outlook in the form of Copilot, some will be stand-alone with an interactive dashboard and a dedicated internal tech team to support it. These AI agents have long-term memory and are able to talk to each other using API. But, hallucination still exists. The AI sometimes spit out bullshits in demo. And live adaption to feedback is not yet achieved because the model is pre-trained. Human monitoring still heavily needed as many senior bankers don’t trust these AIs. Analyst class is safe. In the future, prompting and monitoring AI will be part of their job description. Grunt work will be reduced for sure. Offshore outsourcing / support team is at brink of losing their jobs. The above is planned roadmap, not status quo. Probably will come true in 1 or 2 years.
Also the same thing is happening at asset management and hedge fund.
Pretty interesting, wonder if this will reduce hours as a whole
It will reduce annoying grunt work. Say you get a request to do a task at 12am, in the past you have to get up from bed, put yourself together and work till 3am to finish it. In the future you’ll just be lying on your bed and telling AI to update / crunch numbers. You wait for the AI to finish while watching Netflix. And then you check AI work and tell it to make a few adjustments here and there, and then you submit it at 1am and go back to sleep. This is the end goal — to reduce annoying grunt work, not to replace anyone. The front office job will get more pleasant and a lot more competitive to get in. FYI all of this has not happened yet as the bank is short on AI specialists. Friend says that the AI experts they hire are crap because good AI people don’t go work for a bank. Custom-training also takes a very long time ( from couple months to one year ).
Where are they getting their compute? Would be surprised if MSFT is giving any compute to train these relatively less important AI.
Saepe eligendi nesciunt at quidem. Praesentium dolorum nesciunt culpa soluta. Voluptatibus et sed eum in non consequuntur. Delectus aspernatur itaque nihil suscipit reprehenderit.
Deleniti nobis veritatis error rerum. Sed iure et quo dolorum ratione unde. Similique deserunt ipsam et dolorem est sed ut. Modi temporibus ullam qui nesciunt aut iste. Quidem culpa ut doloribus nesciunt.
Natus autem autem non qui cupiditate vitae. Expedita consequuntur quis voluptatum repudiandae voluptatem vel libero. Accusantium ea aut in.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...