Data & Analytics Insights

Reframing the future of financial services with AI

Emily Prince 

Group Head of Analytics

Amid the heightened attention surrounding generative AI and Large Language Models across financial markets, how is LSEG building on existing artificial intelligence capabilities to increase efficiency and enhance productivity?

  • Using AI and NL to enhance productivity 
  • Leveraging the power of LSEG's extensive & sophisticated multi-asset analytics and pricing libraries
  • Enabling data-driven decisions & greater optimisation of investment management strategies

AI technology is becoming a central part of our lives. With vast amounts of digitised data available, the need for accessing and finding relevant information through responsible AI frameworks has intensified. AI agents are expected to be fundamental to increasing efficiencies with the ability to process data much faster than humans and making analysis quicker and more accurate. This also makes acting on decisions much easier. 

By leveraging the power of data and driving the next wave of digital transformation, generative AI, is largely viewed as the technology that is revolutionising how people can access information and how customers can create unique, actionable insights.

Shifting momentum 

Generative AI is creating new possibilities for the industry. When utilised with care for data provenance and tracking it brings an opportunity to interact with technology differently and has the potential to perform increasingly complex tasks. For financial workflows these are powerful capabilities.

An area of increased interest for financial services is modelling and analytics bringing the ability to build views with proprietary and third-party content around modelling and analytics - from model creation to model consumption with the tooling required to execute at scale. This type of deployment of AI is expected to drive competitive advantages for businesses, by improving efficiency through productivity enhancement, as well as by enhancing the quality of services and products offered to customers.

It is here where we see the real business value in the form of a new wave of productivity.

Reshaping the data analytics experience - making better and faster decisions

Meet Luna, an equity salesperson at Contoso Bank. Today, she's been working closely on a deal with Evergreen, a private wealth fund manager, who is looking for a complex structured note with some pharmaceutical exposure.As Contoso's top trader, Priya knows timing is key to capitalize on the market movement. She’ll have to review the calibration of the volatility surface using the SABR model and optimize the structure based on the new terms.With Microsoft Visual Studio Code and LSEG’s Analytics Python SDK, this’ll be easy.LSEG’s analytics library lets Priya easily pricesophisticated instruments using natural language and the power of generative AI. This saves her valuable time and provides a significant advantage to the business. At her prompting, Copilot in Visual Studio Code, powered by LSEG analytics, easily formulates a response.Almost immediately, she gets the required scenario analysis results, the curve is plotted on Visual Studio Code and the output is ready to be sent. Now Priya can share the results in Teamsby specifying this in the code and selecting the conversation with Luna.In mere moments, the price is updated and ready to be shared,along with some critical sensitivity measures, too. Luna confidently relays the results to her eager client who selects their optimal structure and closes the deal on this highly sophisticated product in a matter of minutes,ahead of other competitors in the industry,all thanks to LSEG's Analytics and AI solutions combined with Copilot in Visual Studio Code from Microsoft. 

As we continue to invest and accelerate our adoption of AI, Machine Learning (ML), and Natural Language Processing (NLP) technologies across the investment lifecycle, how can we optimise the organisation of assets to increase efficiency, transparency and scalability and enable a differentiated and seamless experience for customers?

With timing key to capitalising on market movements, producing code required to price sophisticated cross asset instruments is capable of being done in seconds which will not only enhance productivity with the use of AI but transform for traditional workflows. This will likely see improved efficiency gains and simplicity and flexibility for the user via Microsoft Visual Studio Code powered by LSEG Analytics. 

Leveraging the power of LSEG's extensive multi-asset analytics and pricing libraries can offer a view of financial markets through sophisticated market analytics and a set of parameters that customers can use to set their own pricing strategy.

Bringing together highly fragmented workflows through a seamless integration of AI into financial analytic roadmaps and a consistent, normalised set of APIs removes the need for multiple plug-ins. This empowers quants, fin coders, traders, and user-centric copilots thus enabling data-driven decisions and greater optimisation of investment management strategies.

Working smarter with AI

AI is poised to unlock business models and transform industries, but Generative AI is only as good as the quality of the data it is trained on. It’s important to consider the risks associated with AI in financial services around the concept of AI hallucinations, which is mitigated by pinpoint accuracy. A strong commitment to data accuracy and auditability is fundamental.  

We are bringing LSEG Data Trust and working with partners like Microsoft to apply Generative AI to transform the way customers gain insights from data and make their own workflows more efficient. LLM’s have been advancing and iterating to make it easier for customers to do more, create and share timely, actionable insights. 

With transparency, regulation, and human oversight, we can work towards a safe and beneficial journey into the world of AI. 

LSEG, in partnership with Microsoft, are at the cutting edge of a mission to empower financial services communities to substantially improve productivity, through simplified and reimagined digital workflows, powered by Generative AI.

At LSEG, we are working with partners like Microsoft to apply Generative AI to transform the way customers gain insights from data and make their own workflows more efficient.

Through our 10-year strategic partnership with Microsoft, we are: 

  • Transforming the way customers gain insights from data and make their workflows more efficient. 
  • Redefining data excellence to equip the industry with the right tools for the next generation of financial professionals.
  • Empowering our customers to focus on creating unique insights bringing the transformational power of Generative AI
  • Building an open, intelligent and resilient ecosystem that will utilise Microsoft’s scalable cloud infrastructure.

This will enable our customers to transact easily and securely using our trusted content and analytics, their own data, and third-party data to generate insights for their clients and innovate across their own products. 

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