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Produced in partnership with

Financial services firms have

started to adopt generative

AI, but hurdles lie in their path

toward generating income from

the new technology.

Finding value in

generative AI for

financial services

2

MIT Technology Review Insights

Preface

Finding value in generative AI for financial services is an MIT Technology Review Insights

report developed in partnership with UBS Group. This report is based on six in-depth

interviews with senior executives and experts conducted in June to September 2023.

The report looks at the early impact of generative AI within the financial sector, where it

is starting to be applied, and the barriers that need to be overcome in the long run for its

successful deployment. Paul Kielstra was the author of the report, KweeChuan Yeo was the

editor, and Nicola Crepaldi was the publisher. The research is editorially independent and

the views expressed are those of MIT Technology Review Insights.

We would like to thank the following individuals for their time and insights:

Michael Briest, Head of European Technology Research, UBS

Jason Napier, Head of European Banks Research, UBS

John Mileham, Chief Technology Officer, Betterment

Chia Hock Lai, Co-Founder, Global Fintech Institute

Rama Cont, Chair of Mathematical Finance and Head of the Oxford Mathematical and

Computational Finance Group, Oxford University

Lito Villanueva, Chief Innovations Officer/Executive Vice President, Rizal Commercial

Banking Corporation (RCBC)

3

MIT Technology Review Insights

CONTENTS

01

Executive summary.........................................................................4

02 The promise of generative AI...................................................6

Time for a more measured assessment.

..............................7

Its not magic.

.........................................................................................7

The road ahead.....................................................................................9

03 Reality check: Recent deployments of.

..........................10

generative AI

Cost cuts for now; income generation.

................................10

will have to wait

Eyeing higher-value work.

..............................................................11

Uses of generative AI in the finance sector.

.....................12

04 Only half-speed ahead: Wariness about more.

.........15

extensive innovation

Great expectations...........................................................................15

05 Two general challenges for new..........................................16

technology adoption

Legacy technology.

...........................................................................16

A tight talent market.........................................................................17

06 Tech-specific challenges and the.......................................19

regulatory hurdle

Importance of customization.....................................................19

Reliance, bias, and accountability.

...........................................19

Intellectual property rights and hallucinations..............20

Regulatory risks of a new technology..

...............................20

07

Conclusion: Valuable tool, but yet to.

................................21

be fully disruptive

4

MIT Technology Review Insights

01

01

Executive

summary

W

ith tools such as ChatGPT, DALLE-2, and

CodeStarter, generative AI has captured

the public imagination in 2023. Unlike