The four A’s of Investment Research Through AI: APIs, Analytics, Access and Attribution
Technology is irrevocably changing how the business of investment is conducted, and how investment research is created, exchanged and consumed. The pace of this transformation in our industry is showing no signs of slowing down, with artificial intelligence (AI) at the very forefront.
AI can do everything from transcribing analyst briefings, and scrutinising data, to ‘writing’ reports. However, AI is also playing an increasingly important role in both monitoring access to, and the performance of, investment intelligence on the one hand and tracking the source of that intelligence on the other, to help drive the most effective research for its audiences.
APIs
Whilst email is still leading the way in sending out investment research, increasingly we are seeing the buy side wanting to receive research via Application Programme Interfaces (APIs). These allow the research to be delivered directly from the providers’ system to the recipients, where it can be automatically processed and the data and insight fed into their various models and insight tools.
Analytics
As research services rapidly evolve in the way they are delivered and consumed and the use of AI technologies to inform investment decisions rises, so does the need to understand what works and what doesn’t for investors.
It’s increasingly vital to shape and personalise research for investor clients for maximum usefulness and impact. AI-powered search functions simplify and accelerate the integration of investment research with other types of data. This means that the research results are the most relevant for the user, as well as more easily digestible.
Access
AI can provide invaluable insights on who, when and where people are viewing investment research. Most research providers today rely on measurement such as readership analytics from their emails, research portals and third-party aggregators.
With the changing face of investment research to more dynamic, interactive and personalised digital experiences, and in parallel the growing sophistication of search tools through AI, this will create both new ways of research discovery and a more advanced means of monitoring research usage. By the same token, technology can help ensure that only those who have the rights to access certain pieces of research can do so. And that this is recorded so that – if needed – they can be charged accordingly for that access.
However, the evolution to research formats beyond PDFs also means striking a delicate balance between flexibility and fidelity, to ensure that investors can access information conveniently but without compromising on data integrity or security.
Attribution
Investment research providers increasingly need to provide unique, real-time insights, tag their research and partner with vendors to advance search and display innovation.
More advanced AI technologies will enable readers to far more quickly determine the provenance of investment research to build trust and inform their decision making. Meanwhile the providers can determine what elements of research are performing best with investor audiences and shape the content they produce accordingly.
Therefore, while consolidating investment research in ways that are more user friendly and personalised for investors, it is also critical to ensure intellectual property is protected and transparency on consumption isn’t compromised.
What’s Ahead
It’s an exciting time for the investment research industry, as it adapts to meet the changing needs of its client audiences. While the debate around AI continues, it is clear that, as the technologies evolve, they can only further enhance the delivery of providers and the experience of investors.