In a determined drive to harness the capabilities of rapidly advancing technology, Daiwa Securities Group has initiated a broad-based deployment of the AI-based chatbot, ChatGPT, amongst its workforce.
The company’s CEO, Seiji Nakata, stated that the endeavor, which was piloted in April, encourages approximately 9,000 Japanese employees to fully utilize the tool in their operations. Additionally, Daiwa is increasing its focus on hiring science graduates to further strengthen their in-house tech expertise.
Following the AI Trend in Finance
As Wall Street experiences a wave of AI integration due to a growing interest in the technology’s prospective business impacts, Daiwa has joined the AI revolution. Major international banks, including Deutsche Bank and JPMorgan Chase & Co., are either employing AI to perform tasks like scanning high-value client portfolios or are actively recruiting for roles centered around AI.
Nakata expressed optimism regarding ChatGPT‘s capabilities, pointing out that while certain tasks, such as advising on mergers and acquisitions, should be handled by humans, routine procedures could be easily automated. Daiwa is primarily focusing on developing its own staff into AI experts and data scientists as finding external talent proficient in both these technologies and securities business can be challenging.
Increasing the STEM Graduate Quotient
Nakata revealed that STEM degree holders made up around 21% of Daiwa’s new hires this year, a figure that may eventually reach 50%. ChatGPT’s potential extends beyond just easing routine processes; it could also revamp Daiwa’s retail business by aiding salespeople in identifying the best financial products for individual clients and facilitating efficient execution of orders for corporate customers.
A surge of interest in AI is noticeable across Japan, with companies like SoftBank Group and Mitsubishi UFJ Financial Group planning to build or use versions of ChatGPT. Even Prime Minister Fumio Kishida has instructed a panel to study the economic potential and risks of AI.
According to a recent Goldman Sachs report, around 300 million full-time jobs worldwide, including financial operations, could be impacted by generative AI. However, Nakata assured that no concerns about job losses due to ChatGPT have been raised by Daiwa employees.
Should AI take over certain roles, Nakata emphasized the opportunity to redeploy personnel to other business areas where they can thrive. He stressed, “We humans are the ones using the chatbot, not the other way around.”
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