While companies of all sizes across various industries adapt their processes to make room for innovative artificial intelligence (AI), the financial and investment industry is catching up and leveraging AI tools to enhance their operations and improve their performance. I'm seeing that the financial industry and investment firms can and are implementing various AI tools to help boost their productivity, error margins and overall efficiency.
Being the managing general partner of a global equity investment firm focused on life science companies, I have always been interested in the application of AI in the life science industry. I believe there is a significant opportunity to streamline and optimize drug discovery, development, data analysis, product launch, post-market analysis and patient experience. There are significant additional areas that AI and machine learning could be applied to as well, such as electronic patient records, intellectual property strategies and searches and more.
This is an industry that is data-rich, and as an investor with significant insights into science and operations, I can see value in using AI tools to streamline aspects of the research done at an investment firm. It could help with tracking news; researching the competition; comparing clinical trial results; and supporting predictive models to identify the probability of success for a specific catalyst, development milestone or product performance. AI can also help support portfolio construction, performance and real-time decision-making and adjustment, thus enabling portfolio managers to react quickly to internal and external information.
Use Cases For AI In The Investment Industry
1. Elevating investment searches: Each investment brings a potential risk that must be vetted thoroughly. Investors might use AI to assist in the vetting process by providing background information. Access to the background of the business and its competitors in an efficient way can enable informed decisions with a faster turnaround period. AI tools can help streamline the analysis of a potential investment’s returns, sales and profitability as well.2. Industry analysis and trend forecasting: Investors closely monitor trends across various industries, as macro and micro changes can impact the different companies in their portfolios. Traditionally, this means that teams or individuals must manually keep their proverbial “eye on the pulse” across many industries, a nearly impossible task in arenas that experience frequent change and innovation. Using AI to gather relevant data points, highlight new studies and analyze trends across various industries can provide a unique advantage to an investment firm.
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