BlackRock offers its clients artificial intelligence tools

The world’s largest asset manager is looking to gain an advantage over rivals in the race to capitalize on emerging technology.

BlackRock plans to roll out generative artificial intelligence tools to its clients in January as part of a broader push to use technology to boost productivity, management told employees on Wednesday.The world’s largest asset company, with $9.1 trillion in assets under management for its employees.

BlackRock says in a memo to employees that it has used generative AI to build a “copilot” for its Aladdin and eFront risk management systems.

Customers will be able to use BlackRock’s language modeling technology to help them extract information from Aladdin.

Companies around the world are rushing to use generative AI to create new products and extract proprietary data for financial gain.

Jinai

BlackRock, which already derives more than 8% of its revenue from technology services, is looking to outperform its peers in asset management.

“GenAI will change the way people interact with technology. It will improve our productivity and enhance the great work we already do. GenAI will also likely change our customers’ expectations regarding the frequency, timeliness, and simplicity of our interactions.” “, according to a memo from Rob Goldstein, Chief Operating Officer; Kfir Goodrich, Chief Innovation Officer; and Lance Brownstein, Director of Aladdin Engineering.

BlackRock is also creating tools to help its investment professionals gather financial and other data for analysis reports and investment proposals, as well as a language translator, according to the memo.

Additionally, in January, Microsoft’s AI add-on for its Office 365 productivity software will begin rolling out across the company.

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In any case, the AI ​​will produce “first drafts” that must pass through normal quality control, and all data will remain within BlackRock’s “walled garden,” rather than being shared with users of BlackRock’s generative AI software, which is open access. The director explained in the memo. It also aims to use technology to democratize programming more broadly.

Improve margins

BlackRock executives believe that using AI in this way will help the fund manager reduce fixed costs and increase margins. “Great language models and automation allow us to optimize our people’s time and energy, so we can deliver even more productivity gains into 2024 and beyond,” Martin Small, CFO, said at the Services Conference. Tuesday.

Other financial services companies are also experimenting with AI tools internally and for clients.

Many banks, including Bank of America and Wells Fargo, offer AI-powered chatbots to help retail customers manage their finances.

City

Citgroup uses large language models to improve developer productivity and test software vulnerabilities, but not for credit scoring or other applications that impact customers’ access to financial products, Citgroup CEO Jane Fraser said in a statement Tuesday.

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