Morgan Stanley is making waves in the financial industry by expanding its use of OpenAI-powered, generative artificial intelligence tools within its investment banking and trading division. This move comes after the firm successfully launched an AI assistant based on OpenAI’s ChatGPT technology for its wealth management advisors in early 2023.
The latest tool, called AskResearchGPT, was rolled out this summer in Morgan Stanley’s institutional securities group. This tool allows users to extract answers from the vast universe of research reports produced by the bank, which amounts to over 70,000 reports annually. By using AskResearchGPT, employees can efficiently access high-quality insights on stocks, commodities, industry trends, and regions.
Katy Huberty, Morgan Stanley’s global director of research, sees this AI tool as a game changer in terms of productivity for both research analysts and colleagues across institutional securities. By streamlining the process of gathering insights, staff can access valuable information more quickly and effectively.
OpenAI’s generative AI technology has gained significant traction on Wall Street, with Morgan Stanley reporting that nearly half of its 80,000 employees are utilizing generative AI tools developed with OpenAI. Similarly, JPMorgan Chase has provided access to a platform using OpenAI’s models for about 60% of its 316,043 employees. The San Francisco-based startup recently secured funding at a valuation of $157 billion, solidifying its position as a leader in the AI space.
Pierre Buhler, a banking consultant with SSA & Co., notes that OpenAI has a competitive advantage in financial services due to its robust funding and early focus on banking use cases. While OpenAI currently leads the market, Buhler believes that competitors like Anthropic may gain traction over time as the market continues to evolve.
At Morgan Stanley, employees have embraced AskResearchGPT as a valuable tool for obtaining research insights without the need to contact the research department directly. Salespeople and client-facing staff, in particular, have found the tool to be highly beneficial in responding to client inquiries efficiently.
In a recent demonstration, the GPT-4 based chatbot was able to summarize complex topics ranging from commodities to technology stocks with ease, providing industry-specific jargon and supporting materials. The bank plans to further promote the adoption of this tool to drive productivity gains across the organization.
Huberty emphasizes that while AI tools like AskResearchGPT enhance efficiency, they are not intended to replace the roles of human analysts. She believes that the human touch, relationship-building, and critical thinking skills of analysts are irreplaceable in the financial industry.
As Morgan Stanley continues to leverage AI technology to enhance productivity and streamline research processes, the firm remains at the forefront of innovation in the financial services sector. With the rapid adoption of generative AI tools, the future of banking and trading is set to be transformed by cutting-edge technology.
