On January 19, 2022, the screen in the New York Stock Exchange (NYSE) hall displayed Morgan Stanley’s trading information.
Brendan McDermid | Reuters
Morgan Stanley According to CNBC, the company is expanding its use of OpenAI-powered generative artificial intelligence tools to its vaunted investment banking and trading divisions.
The company, which roll out Katy Huberty, global research director at Morgan Stanley, said that it will provide its wealth management advisors with an artificial intelligence assistant based on OpenAI ChatGPT technology in early 2023, and will start launching another version in its institutional securities department this summer, called AskResearchGPT.
The tool simplifies the tedious task of gathering insights from the more than 70,000 reports the bank produces each year by letting users draw answers from across Morgan Stanley’s entire research universe, including stocks, commodities, industry trends and regions.
“We think it’s a game changer from a productivity standpoint, both for our research analysts and our colleagues in the institutional securities space,” Huberty said in an interview. The tool helps Employees “obtain the highest quality, most insightful information as efficiently as possible.”
Since its launch as a viral consumer app in late 2022, OpenAI’s generative AI technology has been rapidly adopted by Wall Street’s largest players.
Morgan Stanley says nearly half of its 80,000 employees are using generative AI tools created by OpenAI, while rivals JPMorgan Chaseavailable to about 60% of the company’s 316,043 employees Platform use OpenAI’s model, a person familiar with the matter said. The San Francisco-based startup recently bulge The valuation is $157 billion.
OpenAI says it already has network dominance in financial services due to its deep funding and early focus on banking use cases Pierre Boulle, bank consultant SSA Company.
“In terms of market penetration, they are ahead of everyone else,” Buhler said. “But this is an emerging market and we are still in the early stages.” He added that over time, OpenAI competitors such as Anthropic will may be used.
viral attack
Morgan Stanley is a global leader in investment banking and trading, together with JPMorgan and Goldman SachsHuberty said employees are more likely to use AskResearchGPT, using it instead of calling or emailing the research department.
The bank said employees asked three times the number of questions compared to traditional AI-based tools used since 2017.
It’s most popular among salespeople and other customer-facing employees, who often answer questions from hedge funds or other institutional investors, Huberty said.
“We found that using AskResearchGPT, salespeople spend an average of one-tenth of their time responding to customer inquiries,” she said.
Productivity improvements
In a recent demonstration, a GPT-4-based chatbot was able to summarize Morgan Stanley’s positions on issues ranging from copper to Nvidia, to details such as setting up a data center, understanding industry-specific terminology, and providing links to charts and source materials.
Huberty said the bank hopes to further drive adoption given the productivity gains. The tool is embedded in employees’ browsers and Microsoft Teams and Outlook programs for ready use.
Understandably, Huberty said she is often asked whether artificial intelligence will eventually replace the analysts who publish much of the research at Morgan Stanley.
“I don’t think there’s going to be a path in the near future where we just have machines writing research reports to generate ideas,” she said. “I really think it’s people making the decisions and having that relationship, and that’s the analyst job, the sales and A very important part of a trading job or a corporate banker’s job.”
