From tasks to thoughts: How AI is evolving in finance

Key Takeaways

• AI has evolved from automating manual tasks to tackling cognitive ones.
• AI’s true value isn’t in replacing human activity, but in amplifying and scaling impact — dividing tasks makes the most of both human and machine strengths.
• By helping firms think smarter, AI technology advancements help redefine customer service quality expectations, effectively turning intelligence into a true competitive advantage.

A major global investment bank recently introduced an AI-powered research assistant for its trading and investment banking teams, aiming not to cut costs but to improve client service. The tool in this example was able to draw on over 70,000 internal research documents, allowing bankers and traders to find relevant insights quickly and answer client questions with impressive speed and accuracy. What once took hours now takes minutes, enabling teams to offer faster, more informed, and personalized advice. This shift is more than operational — it’s a strategic move to raise the bar for client service, build stronger relationships, and stand out in a crowded market.

Together with my fellow panelists at ACI World Congress in June 2025, we explored trends including AI and fintech innovations, how AI is reshaping post-trade and client services, and the wider shift underway across capital markets. I’ve summarized some of the key messages and insights shared by the panel in this blog.

The big AI shift: automating how people think

For years, the focus of technology in capital markets was on automating mechanical tasks — processing trades, reconciling data, or handling paperwork. But a deeper shift is now underway. Advances in deep learning, with breakthrough developments like TensorFlow and Transformers, have enabled a new breed of intelligence capabilities. These breakthroughs are driving a transition from automating workflows to automating the thinking behind them. Cognitive tasks that once required human judgment — spotting patterns, interpreting intent, even addressing complex client queries — can now be delegated to a machine due to these advancements.

Hyper-personalization in motion: A unified view of the clients and business across the trade lifecycle

For years, front-office systems attracted the lion’s share of investment, while post-trade infrastructure largely lagged behind, relying on legacy tech. That’s now changing. As firms modernize their post-trade tech stacks, they’re unlocking rich, previously siloed data – from trade statuses and settlement timelines to exceptions and inquiry patterns. When this data is pieced together, it creates a unified, end-to-end view of each client.

This, in turn, enables a new level of personalization, with faster responses, tailored insights, and even proactive outreach. The combination provides a high-touch level of experience to the end customer, all powered by automation.

Moreover, the flow of information is no longer one way — gone are the days of hyper focus on straight-through processing solely from front to back office. As firms modernize their systems, they’re unlocking rich trade lifecycle data for internal use and feeding this in real time for front office decision-making, and straight to end clients. Buy-side clients increasingly expect real-time access to data around trades, balances, and payments and integration straight into their own systems, like ERP or treasury platforms, from their sell-side partners. Off-the-shelf tools are emerging to help make this integration more seamless. It’s not just about speed or efficiency anymore — it’s about giving clients the visibility they need to act faster, stay informed, and feel more connected throughout the trade process.

These new capabilities are setting a standard for a new level of customer service that feels hyper personalized to each client. Importantly though, this experience is achieved by using technology to scale client service without the need for corresponding headcount growth.

Checkmate, together: Why humans + AI can win the game

From the printing press to the internet, technology has long helped smaller players punch above their weight, and AI is no different. In capital markets, smaller firms with modern tech-stacks and fewer legacy systems are moving faster, using AI to deliver more agile, personalized services that rival or even surpass their global peers.

Size still matters — and when big firms lean into AI, it can create a flywheel effect: more clients mean more data, which leads to sharper insights and better products, which attracts even more clients, and so on. AI alone doesn’t guarantee an edge. However, like technologies, it can change outcomes if used well.

Machines excel at crunching data but lack the context and judgment people bring. Humans, on the other hand, think strategically but can be overwhelmed by sheer volume. Together, they’re stronger — like a grandmaster with a chess engine: the machine sees every pattern; the human sees the bigger picture.

A BCG study found that when analysts were equipped with AI tools in their day-to-day work, underperformers using AI improved by over 40 percent, with some even leapfrogging top performers who weren’t using AI at all.

This finding drives home an important point: the debate over AI replacing human expertise may be shortsighted. In reality, the combination of human and AI is a force multiplier — scaling human creativity by using machines where they offer a competitive edge. In capital markets, especially in complex areas like client servicing and post-trade operations, where nuance and judgment still matter, the most powerful results may come from a human+AI combination.

The new edge in capital markets

AI is ushering in a new era in capital markets — helping firms extend long-term focus on automation being mere manual inputs to cognitive inputs. Modernizing tech stacks, especially in post-trade, is unlocking data that powers personalization, smarter automation, and deeper client integration — leading to a new area of competition differentiation through hyper-personalized customer services at scale.

Embracing this shift can give both large and smaller players a competitive edge. Increasingly, it’s the quality of service — hyper-personalized, seamless, and responsive — that sets firms apart and keeps clients coming back.