GenAI & LLMs for the Investment Sector

We have seen first-hand how these technologies are transforming industries by automating tasks and operations. This impact is now becoming visible across the investment domain as well. Through our hands-on experience and research with large language models (LLMs) and generative artificial intelligence (GenAI), we’ve gained valuable insights into their workings and potential.

LLMs, like ChatGPT, are deep learning models capable of analysing vast amounts of data in seconds, allowing them to understand and generate human-like text. These models learn language patterns and improve with each interaction. Meanwhile, GenAI extends these capabilities by not only understanding language, but also generating new content, such as text, images and other forms of data.

Our work with LLMs has demonstrated their practical application, from enhancing customer service to streamlining content generation. We believe these next-generation technologies hold significant promise for real-world impact across industries, including the investment space.

Transfer agents are increasingly adopting LLMs and AI to streamline their compliance and record management processes. These technologies offer more precise trade settlements, reduce errors, and ensure that complex regulatory demands are met with ease.

Earlier this year, Broadbridge Financial Solutions introduced OpsGPT, a solution designed to serve as a co-pilot in managing operations across the post-trade lifecycle. By harnessing the power of GenAI and LLMs, OpsGPT simplifies and optimises trading operations. It processes transaction, settlement and position data from across multiple systems to deliver real-time insights that enable users to accelerate complex research tasks, remediate issues faster, and reduce risks.

With AI, investors can easily track and manage their portfolios in real-time.

Investment brokers and fund administrators can significantly benefit from integrating AI-powered portfolio management tools into their operations. These systems streamline and automate routine tasks like trade execution, portfolio rebalancing, and performance monitoring, allowing staff to focus on other high-level responsibilities. By minimising human error, automation not only enhances operational efficiency but also offers investors greater peace of mind.

An example of this technology is Aladdin, developed by BlackRock, a leader in investment, advisory and risk management solutions. Using GenAI and LLMs, Aladdin is a comprehensive platform solution that unifies the investment management process across multiple asset classes through a common data language. It enables asset managers and owners to oversee their entire portfolio, both private and public investments, from end to end. Recently, one of the world’s largest asset managers, Franklin Templeton, selected Aladdin to enhance its own investment management technology.

AI and LLMs have revolutionised customer support by handling routine inquiries and providing instant assistance through chatbots. These AI-powered chatbots can manage common questions about account status, investment options, and market trends, ensuring timely responses. Additionally, LLMs can integrate with knowledge bases and analytics tools to deliver specialised investment advice. This shift enables brokers, administrators and other investment professionals to offer personalised service while freeing them to concentrate on more complex tasks.

The race to provide customers with personalised features and support is intensifying. Robinhood, a stock brokerage firm that played a major role in popularising commission-free trading, recently acquired AI-powered platform Pluto Capital in a bid to enhance its AI tools. This AI technology will give investors access to enhanced data analysis, personalised investment strategies, real-time insights, and portfolio optimisation.

Investors are using AI for real-time insights and personalised strategies.

AI is increasingly enhancing onboarding, Know Your Customer (KYC), and Anti-Money Laundering (AML) by automating key tasks like identity verification, document processing, and risk assessments. These systems handle ID validation, facial recognition, compliance reporting, and screening customer data against watchlists, such as Politically Exposed Person (PEP) lists. This not only speeds up registration, but also enhances security, reduces manual workloads, and delivers a smoother customer experience.

However, as GenAI advances, so does the threat of synthetic identity fraud – the act of cyber criminals creating new identities using stolen or fabricated data. According to LexisNexis Risk Solutions, 85% of such cases in marketing evade traditional third-party risk models. Providers like Onfido, Jumio, and IDnow are meeting this need with advanced AI-powered biometric solutions. These platforms offer facial recognition, liveness detection, and document verification to combat identity theft.

By leveraging the capabilities of LLMs and GenAI, the investment sector can significantly enhance operational efficiency, compliance, and customer engagement. The integration of these technologies not only streamlines processes for professionals in the investment space but also paves the way for more personalised services, empowering users to navigate the market with confidence.