The Impact of AI on Private Capital Markets

Mention the term “artificial intelligence” or AI to someone, and you typically get one of two reactions: fear or excitement. The first stems from concern that AI will “rise up” and start doing things contrary to its intended purpose. It’s a sci-fi nightmare that’s unlikely but can’t be entirely ruled out!

People in private capital markets tend to be more in the “excited” camp, as is clear from AI’s widespread adoption. According to Forrester Research, approximately 66% of financial services firms have adopted AI to some degree. That includes using it to operate more efficiently and better understand client needs.

And AI is delivering value around the world, as PWC notes:

Ever-Better Chatbots

You’ve probably engaged with AI in the form of so-called chatbots—systems designed to handle initial inquiries from customers or clients. You know… “If you’d like to make a payment, press or say ‘one.’”

Letting chatbots start the interaction saves time for the caller, as they don’t have to wait for a human rep to be free. And, of course, it saves time and effort for employees, as the bot gathers information and directs calls to the appropriate area. It’s a true win-win, especially as sound recognition technology continues to improve.

AI and Personalized Offerings

Another area where AI is proving to be game-changing technology is personalization. Whether it’s used to customize products or services, it can significantly increase engagement.  

It does this using sophisticated algorithms that “learn” what individuals are seeking. TikTok is a great example. The more you use the app, the better it gets at showing you content that interests you.

AI can provide the same engagement boost with investors. Firms can use it to fine-tune their outreach so they don’t contact someone about an opportunity that clearly won’t interest them.

Leveraging AI to Sift “Big Data”

The amount of information available today is both a blessing and a curse. The critical insights are out there, but you can drown in a sea of data while searching for them. That is unless you leverage AI to do the searching.

That’s why AI is having such a profound impact on the workforce in many industries, as a survey by the World Economic Forum demonstrates:

Increasingly, AI can “understand” what data is meaningful to a firm generally and to an investor specifically. That enables the firm to make better decisions on behalf of its clients and make them faster. That’s vital in today’s markets, where windows of opportunity open and then slam shut much more quickly than ever before.

This includes both buy-side and sell-side opportunities. On the buy side, AI can perform functions like searching for ideal investments and analyzing reports. But it can also handle more mundane, time-consuming tasks like processing client information.

On the sell side, intelligent systems can track financial news and monitor companies of interest. In doing so, they can ingest and digest data to assess and compare ROI across many options.

Altvia and AI

Altvia solutions, while they don’t rely on AI, are “smart” in their own right. That includes everything from their specialized design and coding to how they streamline processes like gathering, categorizing, and retrieving data, conducting outreach initiatives, and much more. They’re generations ahead of other private capital solutions and lightyears ahead of spreadsheets and manual processes!The best way to understand how advanced, purpose-built solutions from Altvia can make your firm faster, more efficient, and better informed is to see them in action. Contact us today to request an informative demo.

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Webinar

Tuesday, February 27th | 1:00PM ET // 10:00AM PT

Join us in our upcoming webinar, “The Power of Unified Data: Creating a Competitive Edge,“ to hear industry experts delve into the significance of data in private capital markets.