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 The company is expanding its use of OpenAI-powered generative artificial intelligence tools to its vaunted investment banking and trading divisions, according to CNBC.
Katy Huberty, global research director at Morgan Stanley, said the company first launched an artificial intelligence assistant based on OpenAI ChatGPT technology to its wealth management advisors in early 2023 and began testing another version called AskResearchGPT in its institutional securities department this summer.
The tool simplifies the tedious task of gathering insights from the more than 70,000 reports the bank produces each year by allowing users to pull 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 ChaseAbout 60% of the company’s 316,043 employees have access to the platform that uses OpenAI models, a person familiar with the matter said. The San Francisco-based startup recently raised funding at a valuation of $157 billion.
At Morgan Stanley, join J.P. Morgan as a leader in investment banking and trading 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.
Huberty said the service is most needed by salespeople and other customer-facing employees, who often send in research highlights and field questions from hedge funds or other institutional investors.
“We found that using AskResearchGPT, salespeople spend an average of one-tenth of their time responding to customer inquiries,” she said.
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.”
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