Application of AI in IB
For all the hype on AI in the workforce and senior management scrambling to find use cases - beyond ChatGPT, Claude etc. I have not seen a software tool / application that has changed my day to day in the slightest. Is my firm behind or are others feeling the same? I remember reading JPM invested hundreds of millions in AI and am curious what they spent that $ on.
TLDR; is anyone in IB actually using AI to enhance productivity / source business?
Using to write initial drafts of business descriptions when making company profiles, or helping write newsletter material in a sophisticated manner can be helpful but not much else from third parties. Also has helped when I search things on bing/google and Copilot, Gemini give the answer which saves me looking through the sites.
Word also has built in AI tools like "compare documents" which can be useful when looking at changes to legal documents when there's been many turns and the redline only has the most recent turn's changes in red.
Hundo, all marketing materials and models can be handled by AI
How so?
Anything done on a computer will be faster by a machine.
AI is already at 90th+ percentile at most tasks.
There is also Dual AI setups, where they interact with the each other similarly to an analyst and an associate. Checking each others work and correcting. Don’t be fulled by human journalists talking about hallucinations.
ChatGPT is just a wrapper on top of the underlaying deep learning model. That underlying model is what people are investing in, not chatGPT. That model is like a piece of gene capable of reproducing itself and giving birth to different types of AI agents trained on different data / expertise / skill / specialized niche. ChatGPT is just one of the AI agents that it has reproduced ( the first AI agent, but not the last ). ChatGPT is trained on public web-scrapped data, and everyone knows that there’s lots of scam and low-quality info on the internet , that’s why ChatGPT often spit out bullshits. To avoid this problem, the new agents will be trained on non-public, well-prepared, authenticated proprietary data ( and even coached and guided by human experts in the respective field ). The money is spent on training the new AI agents on specialized and proprietary data. If the concept of AI gene and AI agent is too bizarre to understand, you can see this analogy: a Mom gives birth to a child, and the child inherits the Mom’s intelligence. But this child didn’t attend school, and just spent his entire teenage time hanging out on internet browsing the web. Then this child turns out to be unqualified for any white-collar profession even though he is intelligent. This child is called ChatGPT. Then the Mom decides to give birth to more children. The second child is sent to law school to study law. The third child is sent to business school to study finance. The fourth child is sent to engineering school to study coding. And they all turn out to be much better than ChatGPT, because their education is more rigorous and more specialized. And after they finish their education, they will each support the profession that they are trained for. And all of these come from the Mom — the gene that gives birth to all of these intelligent beings. People are investing billions of dollar into that gene, not into ChatGPT.
Can AI spend six hours on the golf course and hear a CEO complain about his valuation, his board and his increasingly dwindling strategic options and then sketch out a sales process for his company over martinis afterwards.
Until then, it’s all noise. Excel didn’t change banking, the Internet didn’t change banking, why would AI be any different
It will not change at high level, ( VP and above ), only low-level ( analysts and associates ) because analysts and associate are essentially cost and dead-weight.
Every tech development has created the need for more analysts not less, don’t think ai will change this
There's some 32 year old billionaire in Japan using AI to supposedly make M&A
originally worked in advertising which is interesting
My friend is currently an intern at EY who’s tasked with helping several BBs integrate AI. So it’s definitely something that’s being explored.
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