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How Wall Street banks and investment firms are using AI

Dec 28, 2023 - businessinsider.com
The article discusses the increasing interest and investment in artificial intelligence (AI) by Wall Street firms, particularly following the emergence of ChatGPT at the end of 2022. Major financial institutions, including JPMorgan, Goldman Sachs, and Deutsche Bank, have accelerated their AI research and use cases, with many hiring AI specialists and experimenting with large language models. Hedge funds are also investing heavily in AI, with firms like Bridgewater and Man Group developing AI-driven strategies and teams.

The article also highlights the potential impact of AI on the financial sector, suggesting it could improve efficiencies, transform dealmaking, and alter job roles. While AI could automate some tedious tasks, it could also make jobs harder to get and change the skills required for entry. As such, financial firms are increasingly seeking technologists with specialized AI skills. The article concludes by noting the potential for AI to upend jobs across Wall Street, from investment banking to wealth management.

Key takeaways:

  • Wall Street has increased its efforts in AI research and use cases due to the rise of ChatGPT, with banks such as JPMorgan, Goldman Sachs, and Deutsche Bank leading the way.
  • Hedge funds have been hiring AI executives to solidify their teams and strategies, with firms like Bridgewater and Man Group launching AI-driven funds and data groups.
  • Asset managers like EQT and AllianceBernstein are using AI to boost their dealmaking and investment skills, changing how investors source deals and improving risk management.
  • AI could make some jobs in finance less tedious but harder to get at the same time, potentially altering the skills required for entry and increasing the demand for technologists with specialized skills.
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