AMIT GOEL
Amit Goel explores some specific use cases and companies deploying GenAI, but warns adoption is not without risks Generative AI (GenAI) is no longer a distant reality; it has caused an imminent paradigm shift. According to a recent study by Mckinsey, 42 per cent of people working in financial services are using GenAI at or outside of work. Visa recently announced $100million investment in GenAI startups. At Money2020 USA this year, one panellist noted that GenAI is a UX shift, which broadens access to financial services. And they’re right. AI-powered chatbots and virtual assistants can guide users through complex financial processes, making them less intimidating and more user-friendly (by using vernacular language, for example). But financial institutions and fintechs are harnessing GenAI in a number of other ways:
Financial insights Bloomberg has a powerful generative AI model, BloombergGPT, with 50 billion parameters, developed with a combination of off-the-shelf AI methods and Bloomberg’s exclusive data. Imagine if it integrates this into its widely used terminal software, helping to navigate the overwhelming volume of news stories, transcripts, and reports.
Enriched FS experiences Morgan Stanley is using GenAI to enhance its wealth management services. www.thepower50.com
The firm has partnered with OpenAI to leverage GPT-4, a powerful generative language model, to organise its vast repository of financial knowledge. This allows Morgan Stanley’s wealth management personnel to access relevant information with less time and effort.
Custom solutions & LLMs FinanceGPT is using GenAI to streamline investment strategies through portfolio optimisation, tax harvesting, and insightful reporting, to generate AI-driven insights for effective goal management and adaptable financial plans. Cognaize is focussing on unstructured financial data. Its platform is adept at handling diverse financial documents, including loan applications, SEC filings, and ESG reports, with a specialised large language model (LLM) tailored for the finance sector, based on a dataset of 1.3 million finance-related documents. InsurStaq.ai is developing InsurGPT, a specialised large language model, tailored for the insurance industry.
Robotic process automation Automation Anywhere has announced three major innovations that put GenAI to work across the Automation Success Platform. One of these innovations is Automation Co-Pilot, which is now powered by GPT and accelerates team productivity by enabling them to action any GenAI use case across any system.
What are the risks? The deployment of GenAI in the financial sector demands careful consideration. Privacy concerns emerge, especially with public GenAI systems that continuously use user inputs, potentially compromising
sensitive financial data. Embedded bias also remains a challenge, as GenAI models, trained on diverse datasets, can inadvertently perpetuate societal biases. Robustness issues arise, with GenAI’s possibility for ‘hallucination’ posing risks in financial risk assessments and customer interactions. Systemic risks akin to AI/ML are magnified by GenAI’s ease of report generation, potentially fostering herd mentality and misinformation. Because of all these potential issues, it’s not going to be a cake walk. Goldman Sachs is exploring generative AI, but none of the projects is directly client-facing due to the regulated nature of financial services. George Lee, co-head of Goldman’s Office of Applied Innovation, is grappling with the potential advantages and challenges. He emphasises the need for a ‘human in the loop’. With human supervision, regulatory policy, monitoring and surveillance, and communication and collaboration, there are actions that can be taken by the industry and prudential oversight authorities to address the risks. We can then realise the full benefits of GenAI.
AT A GLANCE Amit is an early-stage investor in fintech and B2B software startups. He built a company in the fintech space (MEDICI platform) that was acquired by US tech unicorn Prove. He then built the India business of Prove as their country head. Amit is rated as a Top 100 expert in fintech, both globally and in Asia. He is an investor in category-leading fintechs and insurtechs in India. LINKEDIN: www.linkedin.com/ in/amitpayments/ THEFINTECHPOWER50
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