Moody’s Adopts Artificial Intelligence in Financial Analysis

Moody intends to launch a new technology-enhanced with generative artificial intelligence to facilitate and expedite its employees’ work in analyzing vast data sets and preparing financial reports.

topic
the details

the details

Nick Reed, the company’s Chief Product Officer, mentioned during an interview that Moody’s is providing its employees with advanced language models from Google Cloud to ensure the speed and efficiency of examining public documents and querying the company’s databases, enabling them to prepare financial analyses. He added that this initiative aims to empower a broad range of professionals to participate in projects that previously required programming, finance, and accounting expertise.

According to Reed, “What used to take an entire day is now accomplished in just five minutes,” showcasing the efficiency of this technology. He further explained, “There are many possible use cases, and our approach allows our employees to change their work quickly.”

Moody’s employs nearly 14,000 people in over 40 countries worldwide, reflecting the company’s commitment to adopting the latest technologies.

This step represents a new example of the efforts of leading global financial companies to explore the potential of artificial intelligence. Earlier this month, Price Waterhouse Coopers announced its collaboration with OpenAI, the company behind the ChatGPT technology, to provide consultations to clients using this technology. Additionally, KPMG announced a $2 billion investment to support generative artificial intelligence and cloud services for Microsoft.

Philip Moyer

The

Deputy Head of Artificial Intelligence and Business Solutions within Google, a subsidiary of Alphabet Inc., emphasized that this technology will leave an electronic footprint indicating the source of the information used. This ensures that the technology avoids hallucination, a term coined by software developers when large language models generate answers that seem convincing but are incorrect.

Bankers greatly benefit from artificial intelligence. Moody’s will also provide advanced language models for other financial companies to use in various data analysis and information-related tasks that require repetition.

Using this technology, a bank employee can assess whether the bank should provide its services to a small company. The employee can direct the large language model to assess the top three risks as specified by the potential client in their financial disclosures, summarize the latest earnings announcement in three points, or identify five similar companies with similar carbon footprints.

Thanks to this technology, employees can perform these tasks quickly and efficiently in minutes rather than hours of manual work.

Moyer emphasized that this model simplifies information sharing among different departments in the organization and makes complex information understandable to individuals who are specialists in the field.

Moody’s Adopts Artificial Intelligence in Financial Analysis

Moodys Adopts Artificial Intelligence in Financial Analysis

Related Topics