BST Awards 2025: Best buy-side AI (artificial intelligence) platform or tool—CompatibL

Overview

CompatibL is a vendor that focuses on the trading and risk management market, using behavioral psychology to mitigate reliability shortcomings caused by the psychological effects and cognitive biases of AI. It has integrated this research into its buy-side platform, significantly increasing the reliability of AI-based automation across its modules.

The solution  

AI exhibits many types of psychological effects and biases. These biases (as opposed to algorithmic failures) are the primary factors that affect AI’s reliability. CompatibL recognizes that AI fails in ways that are more similar to humans than software programs and in response has developed techniques for eliminating these failures based on the latest advances in behavioral psychology. This approach has allowed the firm to suppress, mitigate or eliminate errors caused by the psychological effects in AI.

Secret sauce  

CompatibL’s research program into the behavioral psychology of AI is unique across the financial services industry. The firm has performed statistical experiments similar to those used in human behavioral psychology research to identify and measure the strength of key psychological effects and biases affecting AI automation.

Recent milestones

CompatibL recently:

• Introduced three new modules targeted at the buy side: Credit Advisor AI, Compliance Advisor AI and Legal Advisor AI
• Used its AI behavioral psychology research to develop reliable AI-based workflows and new modules, achieving high levels of user satisfaction that would not have been possible without these research innovations
• Delivered better-than-human reliability of AI workflows by mitigating the adverse impact of previously unrecognized psychological effects and cognitive biases in AI

Future objectives

CompatibL plans to:

• Use AI behavioral psychology research to unlock business value in AI-based workflow automation for its buy-side clients
• Release additional AI-based modules for buy-side trading, risk and compliance functions
• Leverage its AI behavioral psychology research to continue expanding the envelope of what is possible to achieve with AI

Why they won

CompatibL follows up its win in the best new technology introduced over the last 12 months (AI and machine learning) category in the 2023 American Financial Technology Awards by winning the most competitive individual category of all 37 on offer in this year’s BST Awards. The firm’s win in this category, which received no fewer than 17 solid entries, comes on the back of its genuinely groundbreaking work around the adoption and application of behavioral psychology as a means of improving the accuracy and reliability of AI results in the realms of trading and risk management. 

While most AI reliability initiatives have focused on technical or algorithmic enhancements, CompatibL has chosen a different tack, specifically because of the AI shortcomings stemming from psychological effects and cognitive biases similar to those exhibited by humans. By integrating behavioral psychology research into its buy-side platform, CompatibL has created a novel framework that detects, measures and mitigates these biases. This innovation has led to AI-based automation workflows that according to the Princeton, NJ-based risk and analytics specialist outperform human reliability standards. Its new modules, Credit Advisor AI, Compliance Advisor AI, and Legal Advisor AI, break new ground in terms of the accuracy and user confidence they support, while its cross-disciplinary approach represents a significant move forward for its buy-side clients by delivering accurate, transparent and, crucially, bias-resistant AI automation across its various modules.