A.I. Gets Its Close-Up
Artificial intelligence is on the rise as a potential solution for data issues in the financial industry, with some qualifications

Artificial intelligence has frequently been a hot idea for Hollywood to draw on for sci-fi movies. Artificial intelligence also periodically gets talked about in the data management realm, and those conversations are multiplying.
Last year, I wrote a column about artificial intelligence in both these realms— comparing the movie "Her," and its depiction of a virtual personal assistant who has inhuman command of a large number of clients, with a seemingly chaotic world of big data that business and finance concerns are trying to figure out how to manage.
A.I. is back in the movies recently with the hit "Ex Machina," in which a neophyte is introduced to artificial intelligence as embodied by a female robot, and "Chappie," in which a droid learns to think and feel on its own. And the next "Terminator" movie will be out in just a few weeks. The interest in A.I. as evident in these pieces of pop culture is also high among start-ups. At last week's Exponential Finance conference in New York, Neil Jacobstein, co-chair of artificial intelligence and robotics at Singularity University, the organizer of the conference, rattled off more than 10 start-ups or new innovative companies, all doing something interesting with A.I. in one form or another.
Not all of these may have been applicable to the reference data management realm within the financial industry, but a few are. AltX uses machine learning applied to data to make suggestions to portfolio managers. Dataminr applies machine learning to social media to produce information that is useful for the financial industry in real-time—this one is more akin to real-time market data than reference data. Lastly, Verafin applies fraud detection techniques to address know-your-customer and anti-money laundering issues, particularly for customer risk management.
WorkFusion, an artificial intelligence and machine learning provider covered previously in Inside Reference Data, has notably been applying A.I. to corporate actions data, which itself is a rapidly expanding subset of financial reference data.
Jacobstein explained the need to build massive artificial intelligences, like the companies he cited are doing, "because of the accelerating wave of human knowledge," he said. Jacobstein expects the most interesting capabilities and results to come from artificial intelligence and human knowledge being combined, citing former chess champion Gary Kasparov, who has been studying artificial intelligence and concluded that A.I. and people working together can be more powerful at solving problems than A.I. by itself. This suggests the possibility that artificial intelligence could alter the balance of power between big, established companies and start-ups.
First, however, artificial intelligence will have to become more accessible to ever smaller companies, and the question remains whether some of the start-ups Jacobstein cites can make their offerings available at a cost within reach for smaller firms and funds. If those potential users are enabled with A.I. to manage and derive meaning from increasingly larger volumes of data, then there can be the A.I. "revolution" that Singularity University and its conference envisions.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Hacked off: banks demand answers after Ion cyber attack
Clients have been left in the dark about the ransomware attack that disrupted futures trading last month.
New chatbots reveal limitations of legacy API development
As large language models that underpin the likes of ChatGPT and Bard come to market, vendors and trading firms are starting to see the benefits—and challenges—that open APIs provide.
The buy-side burden: Capturing every document, everywhere, all at once
Ensuring that buy-side firms capture all relevant disclosures from funds—especially in the private markets—can be an onerous and costly task. Accelex is aiming to change that.
Market data consumers buy the same products at massively different price points
A new study finds that asset managers are paying several times more than their peers for the same services—but why? And can it be fixed? Does it need to be?
DTCC’s blockchain for CDS trades finds no takers
Sources say the industry is not yet ready to fully adopt wide-scale implementations of distributed-ledger technologies.
Index fees fatigue: Regulators, startups move in on the big 3 providers’ $5 billion business
Users of index data often complain about the fees they have to fork out, particularly to the likes of S&P, FTSE Russell, and MSCI. WatersTechnology examines the state of the industry and what will disrupt the status quo.
Waters Wrap: ChatGPT, data officers, and reaching new frontiers
As banks clamp down on large language models like ChatGPT, Anthony says that CDOs can help firms experiment with these chatbots while developing the proper governance structures.
After Xignite buy, ex-SunGard execs eye hedge funds, international markets for Quodd
Quodd’s recent acquisition of API data vendor Xignite will provide a springboard to launch the data vendor into new customer segments and markets.