Bringing Disruption in Capital Markets through Artificial Intelligence

Bringing Disruption in Capital Markets through Artificial Intelligence

Capital Markets CIO Outlook | Thursday, July 11, 2019

In capital markets, AI is enabling algorithmic trading, qualitative analysis, automate trade execution, manage risk, and a lot more.

FREMONT, CA: Pricing new issues on intuition and market feel are history. Today Artificial Intelligence(AI) and algorithms are setting the market price for credit, using factors and correlations. There are many use cases of AI that is enabling the industry to have its benefits. Among the active applications of AI in the capital market, the below three are the most prominent ones.

• Augmented Decision-Making

AI is enabling financial advisors and firms to make informed decisions, consider new strategies, and ultimately render results that offer a level playing field to the clients and businesses. For every next-best-action,  AI systems derive the recommendations for financial advisors by analyzing customer portfolio, continuous transactions, and also manage risks in unexpected scenarios.

• Process Automation

Analyzing unstructured inputs, interpreting the human behavior pattern, and responding has been the most significant advantage of AI.  AI software applications are smartly handling complex tasks, adapt to changes and expectations, augmenting including fraud detection, sales, trading processes with cognitive capabilities being the foundation. This convenience offered by automation is assisting in the back-office tasks and increasing the overall efficiency by making human intelligence available for complex, and consumer-facing decisions.

• Personalized Financial Planning

Capital markets industry is relying upon the digital assistants to render better service interaction and transform sales. For improved communication with the clients, AI-powered virtual assistants offer a conversational interface that relies upon technologies like machine learning and natural language processing. AI then understands the intention of the user and give real-time responses based on algorithms.


According to Gartner's survey, banking and investment services are actively investing in AI technologies as compared to other industries. What turns AI set a disruption in almost every industry, including capital markets, is its decision-making ability based on cognitive learning.  In the context of the capital market, AI's potential has made it vital for the industry to thrive.

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