Can AI Save Your Financial Firm Big Bucks?

Steve Cohen of Point72 recently revealed that his firm has potentially slashed $25 million in expenses by using artificial intelligence (AI) to shoulder specific internal functions. Yes, you read that right–$25 million.

Artificial Intelligence (AI) has become an invaluable tool for everything from risk management to customer service, and it turns out it’s the game changer you can’t afford to ignore. Using AI to work smarter, not harder turns tech headaches into cost savings that translate directly to your firm’s success.

With AI’s capacity to optimize workflows, identify bottlenecks, and make informed decisions, investment management firms are poised to operate with unparalleled agility and effectiveness.

Operational Efficiency

With AI-driven solutions, you can automate low-level, repetitive tasks so your team can spend more time on strategic efforts. Using task mining, AI studies how your team handles desktop activities, emails, and other digital footprints.

From there, AI can move on to process mining. Taking what it learned during task mining, AI can map out and analyze an actual process flow, identify inefficiencies and redundancies, model hypothetical changes and optimizations, and evaluate their potential impact. Then, based on its analysis, AI recommends improvements like eliminating unnecessary steps that cause delays or mistakes or reallocating resources more effectively. AI can also optimize workflows in real-time based on conditions, demands, and context.

If you’re not into paperwork, AI will collect data from multiple sources (e.g., legal documents, emails, PDFs, etc.), extract and analyze key information, then use it to generate reports and routine communications with clients and investors. It can even automatically input information into a database.

Harnessing AI is an easy way to significantly cut costs by reducing manual effort, minimizing errors, and increasing speed. Streamlining operations frees your team to focus on strategic, value-add tasks that move the bottom line. In other words, save some money, make some money.

Predictive Analytics

Think of AI as your smart digital assistant that uses data analysis and pattern recognition to process vast amounts of structured and unstructured data faster than you can say “ROI.” AI fine-tunes your investment strategy by flagging patterns, trends, and insights that would be difficult or impossible for humans to detect. The result is that AI can predict market shifts and consumer behaviors with shocking accuracy.

With that kind of access, you have an almost unfair competitive advantage. You can forecast market trends and how different assets will perform, allowing you to optimize your portfolio and capitalize on emerging opportunities before your competitors even see them coming.

Enhanced Compliance and Risk Management

Compliance and risk management are significant cost centers. Leveraging the power of AI can simplify these processes, leading to substantial cost savings in the long run.

Ensuring regulatory compliance is a major responsibility. AI models can be trained to continuously monitor regulatory changes and identify anomalies in your environment that could indicate potential compliance violations. Real-time alerts mean you can quickly investigate and remediate issues and minimize regulatory penalties that could cost millions.

Risk management is another critical function where AI can provide significant value and cost savings. AI mines data and transactions to model and mitigate a range of risks better than traditional human methods alone. Better loss prevention means cost savings and maximized returns—all while staying within defined risk tolerance levels.

Agio’s Arsenal: AI and Human Brilliance

At Agio, we use a balance of AI-driven automation and human expertise to ensure our roster of services is efficient and one-size-fits-one. We’ve harnessed the power of a sophisticated large language model (LLM) to constantly monitor your systems and leverage predictive analytics and insights from past incidents to anticipate and preempt potential problems. When an issue does occur, our skilled human team steps in to use the engine’s enriched data analysis and proven troubleshooting recommendations to resolve challenges fast. Here are just two ways you’ll see our LLM engine and human engineers working together:

• AgioNow, our proprietary customer portal, includes generative AI (GenAI) processes that track each support ticket’s history. We use contextual data about your environment, technology, processes, and preferences to provide prescriptive guidance to our agents so they can deliver personalized service without missing a beat—and without the back and forth.
• Agio Foundations is a central, automated part of our IT governance strategy that compares your policies to our gold standard then flags and catalogs any discrepancies as risks in AgioNow. You can choose either the “auto-heal” mode to seamlessly fix any issues or the more collaborative “risk mode” that involves our skilled team.

We believe services should be anchored by humans and driven by technology. Our human-AI partnership handles chaos while preserving the nuance of customer service so you can keep your mind on big-picture goals and strategic planning without getting bogged down by day-to-day operational headaches.

Unlock the Power of AI

The potential benefits of integrating AI into your operational processes are myriad. AI drives efficiency gains, enhances decision-making, and improves customer service—all leading to cost savings.

To ensure a well-planned and successful AI adoption journey, we invite you to explore Agio’s Copilot Readiness Assessment. This comprehensive tool assesses your organization’s AI readiness and develops a tailored roadmap for responsible AI adoption. Contact us for more information.