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AFTAs 2025: Best AI technology provider—CompatibL

Product: CompatibL AI

AFTAs 2024

Overview

CompatibL is a technology vendor specializing in the trading and risk management segments of the capital markets that uses behavioral psychology to address/remediate reliability issues caused by the psychological effects and cognitive biases of AI. The New York-based firm integrated this research into its buy-side platform, increasing the reliability of AI-based automation across its various modules.

By using the insights from behavioral psychology for AI-based legal analysis of 500-page security prospectuses, CompatibL was able to reduce the rate of errors from 20% we were getting with off-the-shelf AI tools to a fraction of 1%. These phenomenal results were obtained by carefully designing the prompts to prevent the AI analysis from being affected by the tone and framing of the legal language, preventing bias in analyzing the impact of each legal clause 

CompatibL client

The problems it solves  

AI exhibits various types of psychological effects and biases. These biases, as opposed to algorithmic failures, are the primary factors that impact its reliability. CompatibL recognizes that AI fails in ways that are more similar to humans than software and developed techniques to eliminate these failures based on the latest advances in behavioral psychology. Its approach allows it to suppress, mitigate or eliminate the errors caused by the psychological effects in AI.

Differentiators  

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 enhancements

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
We are grateful to the selection committee and deeply honored that our AI research and products were recognized by this prestigious award. We hope it will help increase awareness of how behavioral psychology can help increase AI adoption for mission-critical workflows and drive further innovation, benefiting not only CompatibL’s clients but all buy-side institutions and their vendors

Alexander Sokol, founder and executive chairman, CompatibL 

Product roadmap

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 won the best buy-side AI platform or tool category in the recent Buy-Side Technology Awards and follows up that win by walking away with best AI technology provider category in this year’s AFTAs. These two wins recognize the firm’s work related to 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. In doing so, the firm has addressed two of the key emerging issues associated with AI use across the capital markets—accuracy and reliability.

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.

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