Opimas: Artificial Intelligence in Capital Markets: The Next Operational Revolution

Artificial Intelligence is among the hottest topics in the financial markets today, seeming to promise untold benefits to the major banks that are embracing it, and destruction to traditional asset managers and other victims who get left behind. The truth may be a little different. Indeed, Opimas does foresee myriad benefits coming to financial players in the future from the robots and machines that think and learn and analyse mountains of unorganized data, enabling firms to anticipate and better serve customers' needs. We estimate a 28% improvement in financial institutions' cost-to-income ratio by 2025 as they automate routine processes currently performed by employees. In 2017, we expect financial firms to spend more than US$1.5 billion on AI-related technologies and, by 2021, US$2.8 billion, representing an increase of 75%.