Generative AI has landed on Wall Street. Here's how it can help propel 'massive' revenue growth

cnbc.com:

Like it or not, generative artificial intelligence has arrived on Wall Street — and experts expect it to transform the way firms do business.

To be clear, artificial intelligence, like natural language processing and machine learning, has been used by wealth management and asset management firms for years. Yet with generative AI now on the scene, it can have a powerful impact when combined with other AI technologies, said Roland Kastoun, U.S. asset and wealth management consulting leader for PwC.

«We see this as a massive accelerator of productivity and revenue growth for the industry,» he said.

In fact, the banking sector is expected to have one of the largest opportunities in generative AI, according to McKinsey & Company. Gen AI could add the equivalent of $2.6 trillion to $4.4 trillion annually in value across the 63 use cases the McKinsey Global Institute analyzed. While not the largest beneficiaries within banking, asset management could see $59 billion in value and wealth management could see $45 billion.

Some of the biggest names in the business are already on board.

Earlier this month, BlackRock sent a memo to employees that it will roll out generative AI tools for Aladdin and eFront to its clients in January, which will help users «solve simple how-to questions,» the memo said.

«GenAI will change how people interact with technology. It will improve our productivity and enhance the great work we are already doing. GenAI will also likely change our clients' expectations around the frequency, timeliness, and simplicity of our interactions,» the memo stated.

Meanwhile, Morgan Stanley unveiled its generative AI assistant for financial advisors, called AI @ Morgan Stanley Assistant, in September. The firm's