1. Predictive Analytics :-
Predictive analytics is the process by which computer models are used to predict future events. Using historical data, an artificial intelligence algorithm attempts to predict future scenarios under certain conditions.. It is one of the more target-specific branches of data science.
2. Trade Processing:-
This technology can identify systemic investment strategies and then automatically execute trades, even across multiple markets. When a trader places a buy or sell order, routing algorithms are used to find a match from stock brokers, exchanges and trading systems that can fulfill the order.
3. Combating Money Laundering & Fraud Detection :-
Money laundering has been a major challenge for the financial services and banking industry faced at the global level. AI has proved to be a crucial silver lining to overcome this issue.
4. Market Data Collection : –
A simple implementation of an AI system could remove the threat of information overload for an investment banker. Associates are expected to know the news as it happens, and in some cases before it happens. An artificial intelligence platform could help analysts by systematically collecting, analyzing and classifying news, as well as sentiment within the market.
5. For Regulatory Compliance :-
Risk and compliance departments suffer from large data loads and increasing regulatory requirements. Attempting to solve these issues with manual processes leads to repetitive and time-consuming processes. While AI in the form of algorithms has been around for nearly 20 years, what separates it in the compliance field is its ability to create an iterative learning process. An AI system can adapt inputs and perform tasks automatically.
Artificial intelligence is becoming a game changer in investment banking, e.g. :-
a)Barclays is developing an AI system for customers to speak to a device to receive transaction information.
b)UBS recently announced that is using robots on the trading floor to improve trader’s performance.
c)JP Morgan recently introduced AI technology, COiN (Contract Intelligence), a platform designed to “analyze legal documents and extract important data points and clauses”.