Goldman Sachs is going big on big data.
Don Duet, co-head of the bank’s technology division, said the firm is is investing deeply in artificial intelligence and machine learning.
“You know, we see that the ability to take data and help turn it into information as an asset as a core part of our strategy,” he said in a podcast interview with the bank’s head of communications.
“It’s a very important, both technological strategy for the firm as well as business strategy, and helping us move to a better degree of data driven businesses, as well as really deriving expertise, content and knowledge of information.”
Goldman Sachs isn’t alone. Large financial services companies are using technology to mine data on customers and markets. In December, Reuters reported that an annual survey of senior bankers by Temenos found that “IT Modernization” has risen to the top of their priorities.
(To get the must-read guide to the key issues at every major Wall Street bank, click here.)
Here is an excerpt from the Goldman Sachs podcast transcript:
We’re really, I think, at the very beginnings in the world of recognising and seeing how you can take AI, artificial intelligence, and really provide business applications around it. That’s an area that we’re also investing quite actively in and how do we really find opportunities to use AI solutions and machine learning solutions, help us improve existing processes, to help us become smarter at our business, help us serve clients better and so those are two areas that we’re deeply investing in at this point.
The comments echo those made by Daniel Pinto, chief executive of the corporate and investment bank at JPMorgan, who said in a December memo that the bank was investing in big data applications and robotics. The bank is set to provide an update on those investments in the coming weeks.
Here is an excerpt from Pinto’s December memo:
As we look ahead to 2016, one of our major priorities will be to aggressively pursue the innovative technologies that we have been making investments in. Internal working groups have made significant advances this year and will be provided even more freedom to develop market-leading platforms in 2016.
We have also established teams dedicated to areas such as blockchain technology, big data applications and robotics.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.