“Just as the steam engine powered the industrial revolution, and the internet ushered in the age of information, AI may commoditize human intelligence. Finance, a data rich industry with clients adopting AI at pace, will be at the forefront of change.”
This quote caught our eye! Its from Citi report “AI in Finance, Bot Bank & Beyond” on the expected impact of AI on banking and finance. We just had to take a closer look…
One take away is that AI in the finance sector can now be described to be in the second stage of the cycle “Hype, disillusion, mass-adaptation”. The Hype has definitely hit and organizations are now experimenting to find suitable use cases and make it work. Strong and agile organizations are going to adapt faster and create new disruptive products and likely gain market shares from laggards.
From our own specific field of AI support for analysis, the report mentions issues with so called Data delunge – referring to the overflow of that could be used by analysts and researchers, had they just had the time and bandwidth to handle it.
Citi estimates that 25% of analysts total time could potentially be saved in data collection, consolidation, and analysis of data thanks to AI solutions.
Report writing is another area where Citi’s report see great potential for time saving, stating that analysts spend as much as 20% of their time writing reports and commentary.
We help our users efficiently gain insights from about 40 million news articles published over the past 10 years, and we analyze roughly 25 000 news ones every single day. On top of this we can also provide AI generated ESG reports at a fraction of the cost compared to manually writing it. And if we believe Citi, there is substantial time (cost!) savings to be made here!
What does all of this boil down to? Well, Citi estimate that AI could provide 9% profit increases to the banking business by 2028. That would equate to 170B USD in EXTRA profits, every year!
You can read the Citi report here https://www.citigroup.com/global/insights/citigps/ai-in-finance
