As we move toward 2030, it's hard to know exactly where we're going to land with artificial intelligence (AI). However, there are some general trends and momentum around AI that are plentiful in capital markets and in the security services industry – some of which were outlined in a recent paper, Future of Securities Services, published by the International Securities Services Association (ISSA). DTCC has been a long-time participant in ISSA, providing perspectives across various working groups including asset servicing, operational resilience and emerging technology.
Related: DTCC CEO discusses AI and the "market infrastructure of the future"
Here are three areas where our industry can utilize the transformative power of AI:
- Advanced Analytics and Decision-Making
Data is the foundation of AI. As data ecosystems become more important, AI will play a key role in facilitating the integration and analysis of diverse data sources. Several tools are already showing unique capabilities in improving metadata tagging and increasing data observability.
AI-driven analytics, like advanced analytics, are going to drive insights from vast amounts of unstructured data as well and with that foundation you can build an array of tools around predictive analytics and risk management. Leveraging AI for market prediction and trend analysis is going to become much more sophisticated and will enable better decision-making.
- Regulatory Compliance and Fraud Detection
Regulatory compliance and fraud detection are top industry concerns. AI can help automate several compliance processes, ensuring more real-time adherence to regulations which will lower compliance costs.
Fraud detection, another area where AI can make a powerful impact, will require collaboration across industries. Data sets from various market participants can lead to a broader sort of open-source initiative that can enhance the detection of fraudulent activities through pattern recognition and anomaly detection.
- Personalization and Customer Experience
Chat bots and virtual assistance are the low hanging fruit that can drive significant optimization in productivity. AI-driven customer service will provide more personalized support and more empathetic service and hopefully improve customer satisfaction. There are other opportunities with chat bots that help with internal productivity as well, including file searches, synthesis of information and data querying across various data sources.
AI is gaining tremendous momentum and there is little doubt it will have a significant impact within capital markets. The key to unlocking the ROI behind AI is to address the challenges and embrace a “transformative” mindset.