Artificial Intelligence (AI) has surfaced as a game-changing force in recent years, with the financial sector showing keen interest in harnessing its potential. At WealthRyse, we not only acknowledge the substantial benefits that AI can bring to financial services, but also underscore the necessity of a robust implementation strategy.
Scientific credibility. When seasoned financial industry professionals contemplate deploying an AI-enabled buy-side system, many factors come into play. One important criterion is to verify the scientific credibility of the proposed AI methodologies. With the increasing acceptance of AI, we have noticed a surge in the number of vendors, including those who previously dismissed the relevance of AI in finance, now purporting to offer AI-enabled functionalities. A simple yet highly effective method to discern their authenticity is to request your vendor for peer-review-based scientific validation or any credible scientific citations related to the research and development of their AI methodology, which typically requires at least a couple of years to construct. Such a simple question ensures that you do not waste your valuable time on vendors who merely use the AI label as a marketing ploy.
Continuously updating data. Furthermore, it would be beneficial to understand how your provider trains and retrains its AI model with continuously updating financial data, as the responsibility of data provision typically lies with the vendors. WealthRyse acquires data from a variety of sources, including prices, financials, regulatory filings, news and social media sentiments, macroeconomic trends analysis, and any subscription and internal data that our users opt to pay for. Moreover, if your provider retrains it model only once every six months using data that is six months old, you end up with a model that would have been highly effective if it was deployed six months prior. The logical question here is how your provider’s chosen AI model updates itself with continuously updated data. experts. In addition, your vendor is ultimately training its AI model based on certain human expertise – the model is essentially attempting to emulate what the expert might act. Therefore, it is advantageous if the model is learning from someone with proven expertise in portfolio management. After all, when selecting a human portfolio manager, you might prefer someone with a proven track record in portfolio management that you can readily verify from the internet or on a Bloomberg terminal. Why would you not demand the same lofty standards from your AI provider?
AI hallucination. Lastly, AI hallucination is a significant concern among financial regulators. This term refers to a situation where the AI generates two different responses to the same question, and sometimes even fabricates entirely false facts and uses these “facts” in its analyses. There are effective ways to address AI hallucination: for instance, AI is employed in medical diagnostics. No doctor will feed the X-ray images of his or her patients to a general AI model such as ChatGPT for diagnostics. They would only trust a diagnostic AI model built from expert diagnostic reports collected from medical data of real patients. Similarly, WealthRyse delegates many labor-intensive tasks such as the analysis of sentiments on thousands of daily news and social media items to AI, and the main AI engine for decision support is trained on 30 to 40 industrial-strength portfolio analytics reports produced by a proven expert system. Moreover, we provide a convenient mechanism for our users to efficiently review our recommendations before submitting them. This is how a responsible provider of AI capacities serves its users effectively.
In conclusion, at WealthRyse, we are committed to delivering an innovative, yet responsible, AI-powered wealth advisory and asset management platform that enables our clients to improve their client servicing capabilities. By prioritizing transparency, scientific credibility, robust data management, and a responsible approach to implementation, we strive to provide our users with the confidence and trust they deserve in sourcing a robust solution for their asset and wealth management services.
David Lee