AI For Finance

The First Chat GPT for Finance

AI tools are continuing to advance, and now we have an AI tool that is assisting financial firms, and its name is Zillion. Our tool is an AI with built-in financial tools and can be used as an outsourced investment researcher, an AI investment analyst, an AI economic advisor, etc. Essentially it is an AI for all things finance. With its speed and extreme expertise it can save financial firms time (+4 hours/day for everyone using it), grow your firm's expertise, obtain cost-efficient scaling, and increase your investment team's output. Imagine instantly adding an AI bond analyst to your team or AI EM analyst to manage a new EM mandate. Now that we are here, let's answer your questions about AI for finance.

How Can Finance, Banking, and Investment Professionals Use AI?

We want to discuss a few use cases for AI in the finance world, but let's set the stage a bit. Most of us have probably interacted with some form of artificial intelligence at this point. Whether we asked a question to Chat GPT, seen the AI suggestion in our Google searches, or used an auto-complete feature in Microsoft Word or Excel. If you’ve used these tools, you’ve probably noticed two things. They make you more efficient, but they can get things wrong. On their own, these tools are not accurate enough to be used in the financial world, but Zillion has improved their AI analyst to a point of being better than most entry-level finance workers. While most AI is being used to handle note taking, summarize papers, and craft emails back to clients, Zillion brings it to the next level and let's finance professionals use AI for complex tasks. Here are a few use cases for Zillion's AI analyst:

1. AI for Investment Managers: Zillion is able to provide individual security analysis for both public equity and bonds. Our AI analyst has a multitude of valuation functions in its toolbelt and access to financial statements to run the analysis. It can find intrinsic valuations from dividend discount models, free cash flow models, binomial interest rate trees, comparable analysis, and most other valuation methods for public companies. It can also look at recent news and changes in the economic environment to help analyze a security. The large language model is also useful for providing a detailed summary of it's findings. Our AI is also adept at portfolio structure and can analyze portfolio diversification, duration, expected returns and provide feedback on how to update the portfolio, which is very helpful for upcoming calls or general portfolio review. Since these valuation tools are embedded in the AI analyst, it can complete complex valuation in seconds compared to the hours it would take for a human to analyze the security. This saves investment managers time by just needing to review the output and then making a decision based on the AI's research. We are working on specialist AI analysts for distressed debt, various real estate deals, private sector investments, and so much more.
   

2. AI for Wealth Managers: Given our AI's breadth of training in the financial sector and deep toolset on investment analysis, it is a great AI assistant for wealth managers. Ahead of meetings it can help you conduct portfolio reviews and propose changes to help a client stay on track for their objectives. It has a deep understanding of financial planning and can analyze past performance of asset classes to devise optimal portfolio allocation, create different buckets for financial planning, and recommend any additional services that the client might be suited for (estate & tax planning). Our AI has access to current data and can also provide macroeconomic summaries and outlooks for you to always be up-to-date on the economy in client calls. It can save a wealth manager time in servicing client's by helping answer client inquiries as well.
   

3. AI for Financial Presentations: Did we mention that our AI can handle spreadsheets and can make interactive graphs? Oh yeah, it can do that. We have made it very easy for anyone in the firm to be able to interact with our AI analyst and increase their output from the interaction. Send over a CSV spreadsheet with instructions on how to update or ask for a graph from a research query you gave it, and it will be back in seconds with your request.
   

IBM provided some good business use cases for AI in finance here: IBM article.

Will AI take Jobs in Finance?

We don't think AI will take over someone's job in finance, but we do believe that any firm that uses AI tools will 100x their output and take market share from competitors in their sector by being early adopters of the powerful technology. There is no doubt that AI will change what financial jobs look like. For instance, Forbes recently published this piece on investment banks looking tor replace entry-level finance jobs. However, we don't think it is doom and gloom for people in the industry. The number of jobs in the financial sector has grown consistently over time, and new technology usually creates increased demand for a service generating new jobs to fill that demand. While a tool like this greatly increases productivity and handles many high-level analytical tasks, it doesn't have the critical human level subjectivity and the ability to detect nuance like a human does. Humans will continue to be critical in the investment space, because while we think that markets are rational and will follow the numbers to a tee, we often experience irrational market behavior and diversion from theory. This makes it critical for humans to still be a the center of the investment decision making process. Jobs in the Financial Sector:

AI can be used in finance by using specialized tools like Zillion. Generative artificial intelligence will reshape the financial industry and that new trail will be set by early adopters of this technology to their firm. Contact Zillion to learn how you can start using AI in your firm.