Generative AI, a technology known for its use in ChatGPT, is set to revolutionize the banking industry, with the potential to add billions of dollars in value for banks each year. One of the pioneers in leveraging generative AI in banking is Morgan Stanley, which recently launched an internal AI assistant based on OpenAI’s ChatGPT technology. Dubbed the AI @ Morgan Stanley Assistant, the tool aims to help financial advisors and support staff access and understand thousands of research reports, acting as a “copilot” to enhance efficiency in their roles.
Morgan Stanley’s co-president, Andy Saperstein, believes that the AI assistant will transform client interactions, streamline advisor practices, and ultimately free up time for staff to focus on serving clients better. Generative AI’s strength lies in its ability to analyze vast amounts of information and provide easy-to-understand answers based on conversational prompts and questions. In addition to the AI assistant, Morgan Stanley is working on other AI tools, such as Debrief, to automatically summarize client meetings and draft follow-up emails.
The possibilities for generative AI in banking are vast, including improving customer service through chatbots, streamlining onboarding processes, and creating personalized tools and advice for customers. By leveraging generative AI, banks can gain deep insights into customer behavior and preferences, leading to the development of tailored products and services. Furthermore, automating behind-the-scenes processes such as financial analysis, content creation, and risk management can significantly enhance operational efficiency for financial institutions.
Other banks have already started to embrace generative AI in their operations. NatWest collaborated with IBM to enhance its virtual assistant, Cora, while Square is using generative AI to develop new tools for customer content creation, onboarding, and setup. HSBC has also identified numerous use cases for generative AI that could be implemented in the future. The adoption of generative AI is essential for banks to stay competitive in the ever-evolving financial landscape and provide innovative solutions for their customers.
Overall, generative AI is poised to transform the banking industry, enabling banks to streamline processes, drive innovation, and deliver personalized services to customers. As more financial institutions integrate generative AI into their operations, those that fail to embrace this technology risk falling behind the competition. The future of banking lies in leveraging the power of generative AI to meet the evolving needs of customers and drive sustainable growth in the digital era.
