Morgan Stanley is expanding its use of OpenAI’s generative artificial intelligence (AI) tools, now integrating them into its prestigious investment banking and trading operations, according to CNBC sources. After introducing an AI-powered assistant based on OpenAI’s ChatGPT for its wealth management advisors in early 2023, the firm has since launched another AI tool called AskResearchGPT within its institutional securities group, said Katy Huberty, Morgan Stanley’s global research director.
AskResearchGPT allows users to quickly retrieve information from Morgan Stanley’s extensive research database, which includes insights on stocks, commodities, industry trends, and specific regions. With Morgan Stanley generating over 70,000 research reports each year, accessing the right information could otherwise be time-consuming. The tool now makes this task significantly more manageable.
Huberty emphasized the productivity impact of AskResearchGPT, calling it a “game changer” for the company’s research analysts and institutional securities team members. The tool enhances efficiency by helping employees access high-quality, relevant information faster than ever before.
Since OpenAI’s generative AI technology entered the mainstream in late 2022, Wall Street has eagerly integrated it into various operations. Today, nearly half of Morgan Stanley’s 80,000 employees use AI tools developed with OpenAI technology. Similarly, at rival firm JPMorgan Chase, about 60% of its 316,000 employees have access to a platform leveraging OpenAI models, according to a source close to the matter. OpenAI, headquartered in San Francisco, recently raised funds at a valuation of $157 billion, underscoring its rapid growth and market dominance.
OpenAI’s strong position within financial services can be attributed to its robust funding and a concentrated focus on banking applications, according to banking consultant Pierre Buhler of SSA & Co. He noted that OpenAI has secured an edge in market penetration, but as the technology evolves, other AI companies, like Anthropic, could emerge as formidable competitors in financial applications.
Morgan Stanley employees, particularly those in sales and client-facing roles, have embraced AskResearchGPT. According to Huberty, usage has surpassed that of a previous AI tool introduced in 2017 by about threefold. For client-facing staff such as salespeople who regularly handle questions from hedge funds or institutional investors, the tool has proven particularly valuable. Huberty shared that AskResearchGPT allows salespeople to respond to client inquiries in a fraction of the time—just one-tenth—compared to previous response methods.
In a recent demonstration, the GPT-4-based chatbot displayed impressive capabilities, offering summaries on Morgan Stanley’s perspectives across a variety of topics, from copper markets to tech giant Nvidia. The tool was able to handle specialized financial terminology and provide charts or links to relevant data, further enhancing the user experience.
Given the productivity boost observed, Morgan Stanley aims to increase adoption of AskResearchGPT further. The AI tool is integrated across employees’ browsers and popular software like Microsoft Teams and Outlook to make it easily accessible.
With the rise of AI in the industry, one question that arises is whether AI could ultimately replace analysts who produce Morgan Stanley’s research reports. Huberty addressed this concern, noting that while AI can streamline access to data, it’s unlikely to replace the human insights provided by analysts. She stressed that analysts play a vital role not only in generating ideas but also in building and maintaining client relationships—an aspect that remains essential to the roles of analysts, salespeople, and corporate bankers alike.