10 Use Cases of Generative AI in the Financial Services Industry
Artificial intelligence has been in use in the Financial Services industry for a while. But what about Generative AI? Is it revolutionizing the industry as overwhelmingly as in other industries (creative, content, entertainment, journalism, productivity, etc.)? How are traditional AI and generative AI going to cohabitate and combine their powers to transform the financial industry?
We shortlisted 10 applications of Generative AI to Finance and Fintech:
#1 — Payment User experience & Fraud detection
Stripe leverages GPT-4 to streamline user experience and combat fraud.
Stripe asked 100 employees to dream up GenAI-based features. The team listed, tested and vetted 50 potential applications; 15 prototypes were considered strong from support customization to fraud detection.
Stripe had previously used GPT-3 for customer support to better serve users through tasks like routing issue tickets and summarizing a user’s question.
Source: Stripe (openai.com)
#2 — Customer support & Spend data analysis
Finance automation company Ramp acquired Cohere.io, a startup that built an AI-powered customer support tool.
Cohero.io provides LLM-powered support automation. With the acquisition, Ramp will focus on adapting the product to help its customers automate their workflows and better use and understand their spend data.
Cohero.io has been using generative AI and LLMs before the advent of ChatGPT to extract companies’ historical customer support data.
Source: As the generative AI craze rages on, Ramp acquires customer support startup Cohere.io | TechCrunch
#3 — Financial decision-making
Cognaize is an LLM-based document automation solution powered by hybrid intelligence to drive continuous improvement for financial services.
The platform uses deep learning trained on financial models and 1.3 million documents (loan applications, SEC filings, ESG documents, trustee reports) complemented by human feedback.
Cognaize just secured a $18 million Series A funding round led by Argonautic Ventures. Customers include two major credit ratings agencies and large insurance companies.
#4 — Virtual assistant & Travel guru
Navan (former TripActions) recently augmented its chatbot with genAI capabilities.
Navan’s Ava chatbot handles travelers’ requests and acts as a personal data analyst and travel guru that slices and dices real-time spend data, provides insights into T&E questions and proactively finds opportunities for savings.
Select North America clients are currently working with the tool, as the company is rolling it out more widely.
Source: Navan Adds Data Analysis Capabilities to AI Assistant | Business Travel News
#5 — Code writing
Goldman Sachs CIO is internally conducting a pilot with generative AI tools to assist developers’ code writing by generating lines of code.
JPMorgan, Goldman Sachs, Citigroup, and Bank of America have all reportedly restricted staff from using the software.
Source: Goldman Sachs experiments with ChatGPT-like AI to help devs write code (cnbc.com)
#6 — Trading strategy
Composer is an automated trading platform, that uses AI to create stock trading strategies from scratch.
Composer requires no coding skills. Its AI-assisted editor allows users to explain their goals, strategy, and risk concerns in natural language. The app then creates the strategy for them. Composer executes the trading strategy, making trades and rebalancing assets automatically, so users can invest based on data and market movements instead of sensationalized emotions and tweets.
Source: Using AI to create stock trading strategies from scratch (with practical examples) — Composer
#7 — Risk Detection
Slope (YC S21) just launched SlopeGPT, a payment risk model powered by GPT-4.
SlopeGPT leverages GPT-4 to more accurately categorize bank data (often unstructured and unstandardized) and decompose cash flow than its counterparts, providing a higher-resolution picture of a business and improving risk detection.
Source: SlopeGPT: The first payments risk model powered by GPT | by Jason Huang | Slope Stories | Medium
#8 — Financial prediction
FinGPT aims to stimulate innovation, democratize FinLLMs, and unlock new opportunities in open finance.
FinGPT is an open-source LLM for the finance sector. FinGPT takes a data-centric approach, providing practitioners with transparent resources to develop their FinLLMs. It also showcases potential user applications such as robo-advising, algorithmic trading, and low-code development.
FinGPT democratizes FinLLMs by fostering a strong ecosystem of cooperation within the open-source AI4Finance community.
#9 — Knowledge management
Morgan Stanley wealth management deploys GPT-4 to organize its vast knowledge base.
The model is based on vast amounts of text on the internet, 100 years of content produced by Morgan Stanley on capital markets, asset classes, industry analysis, and economic regions, and 200 employees querying the system daily and providing feedback.
The firm evaluates further OpenAI tech to enhance insights from advisor notes and streamline follow-up client communications. Source: Morgan Stanley (openai.com)
#10 — Investor Pitch Deck
Like Beautiful.ai, Design.ai, and Kroma.ai, Sendsteps.ai helps entrepreneurs to create compelling investor pitch decks.
With its advanced AI-powered capabilities and intuitive interface, Sendsteps.ai helps create an effective pitch deck 10 times faster than traditional methods. It provides features like live polling, interactive Q&A sessions, and audience engagement tools. presentation.
Clarify Capital surveyed 250 investors and 250 business owners to rate the series of pitch decks created by GPT-4. Overall, they found GPT-4 pitch decks twice as convincing as human pitch decks (80% vs. 39% for human-created decks).
Source: GPT-4 Beats Humans in Pitch Effectiveness | Clarify Capital
