Sure, there’s lots of room for LLMs in helping to do clerical work, HR, that kind of thing. I was actually thinking of the direct management of funds and investments. So yeah, like probably all businesses, the ancillary functions can probably improve productivity using Generative AI with a minimal hit to quality.
You are right about the clerical work, but even pure finance is a lot more than 'direct management of funds and investments'. Have a look at Matt Levine's Money Stuff newsletter for a taste.
And I'm not quite sure why you mention determinism in the grandfather comment? Finance people have been using Monte Carlo simulations for ages. (And removing non-determinism from LLMs by fixing the seed of any pseudo-random number generator used wouldn't really change anything, would it?)
At the end of the day, the hard limit in finance is defaulting. Everything outside that is financial poetry (or engineering :-p).
I know every segment of finance loves to pretend that's not the case, because their jobs (and high salaries) frequently rely on that not being true (see the subprime mortgage crisis).
> At the end of the day, the hard limit in finance is defaulting. Everything outside that is financial poetry (or engineering :-p).
You are forgetting all about regulations and taxation (and how to work with / around them). And how to cleverly read documents, and exploit loop holes in contracts.
There's so much more to finance.
(And for eg stocks or commodities, there's not even any notion of defaulting. Defaulting only really makes sense when you have fixed obligations. 'Fixed income' is only one part of finance.)
Finance is all in on reading 10-Ks and generating summaries. If you have decisions in mind, I’ll be referring to IBM 1979 slide until an HR LLM fires me.
