Generative AI in Asset Management
Through our engagements with Asset Management firms, we have witnessed the significant value that GenAI can drive. We understand that industry leaders are actively looking into this technology to evaluate how to reap its competitive advantage, and we wanted to summarise our leanings to support those frontrunners.
What is Generative AI, and what does it mean for Asset Management?
The Generative AI revolution will enable tasks once done by people to be done by machines, benefiting every industry. Companies that embrace this change early will thrive. In the next few years, we expect rapid adoption of this technology in the hyper-competitive field of Asset Management.
What’s next for Generative AI?
As with all new technology, there's always multiple waves of approaches to applying these new capabilities. In 2023, we saw v1 of Generative AI with Co-Pilots. And although we believe this opened the imaginations of technologists and business people, we are already seeing a shift in how leading companies are approaching Generative AI.
In 2024, leading firms have grasped the potential of Generative AI. Firms are now shifting away from blanket deployments of co-pilots, to more targeted applications of the technology across front, middle and back offices. And we are already seeing real value being created in these deployments.
How Asset Managers are using Generative AI
Front Office
Building proprietary data sets by searching through historic investment, security and company information to extract non-standardised information relevant to decision-making
Diligencing investment theses by having an LLM consider investment opportunities and critique the hypotheses
Back and Middle Office
Reviewing historic legal contracts to understand exposure to risk and mechanism in various scenarios
Invoice checking and reconciliation from brokers and banks
Drafting performance and risk reports for investors
What are firms considering as they look to deploy Generative. AI?
Security: Asset management firms handle sensitive information under strict regulations (sharing data with third parties is often not an option). Firms need internal solutions for building, testing, and deploying applications.
Performance and Accuracy: Generative AI must automate processes effectively to be valuable. Low accuracy solutions require excessive oversight, negating benefits. Firms need applications with near-perfect accuracy to be valuable for firms.
Intellectual Property: Firms want to leverage proprietary data without relying on external models, allowing them to accrue a competitive edge over time. And they do not want that expertise to leave the organisation through data leakage.
Boltzbit are here to help
At Boltzbit, our focus is helping firms build Generative AI solutions that users can trust and control. We provide tooling to to help businesses leverage their company knowledge for efficient results. How do we do this?
Infrastructure and Tooling
Full-stack solution for client infrastructure.
Enables seamless model training, real-time data collection, fine-tuning, and quick construction of front-end applications.
State-of-the-Art Architecture
Novel model architecture that leverages our leadership teams’ deep experience in Generative AI.
Increases efficiency and reduces model costs by 5-10x, enabling wider Generative AI deployment.
Advice and Guidance
Extensive experience with financial firms.
Supports application identification, design, building, and deployment.
Shortens build times and helps avoid common risks and mistakes.
IF YOU ENJOYED THIS ARTICLE AND WANT MORE CONTENT LIKE THIS:
Subscribe to this newsletter to get notified when a new issue comes out.
Follow the Boltzbit page
You can also follow CEO Yichuan Zhang, for more insights!
If you're interested in Boltzbit's solutions, please email [email protected]