By Jose Goicoechea, Head of Digital and Commercial AI, and Yashendu Joshi, Head of COE, Artificial Intelligence
In the history of financial services, change has always been a constant. From the abacus to the electronic ledger, each wave of technology has reshaped our industry, separating those who adapt and lead from those who are left behind. Today, we stand at the threshold of another such transformation.
The term “artificial intelligence” is everywhere, often surrounded by a confusing fog of hype, speculation and misunderstanding. In this article, we aim to clear that fog, outlining the AI reality for our industry and the role it has to play in our professional futures.
What AI isn’t: Dispelling the common myths
The narrative around AI is often filled with futuristic fantasies and misplaced fears. For leaders in the financial services sector, it’s crucial to separate the science fiction from the operational reality.
Myth #1: “AI is a ‘black box’ that makes unknowable decisions.”
This is perhaps the most pervasive concern. The image is of a mysterious algorithm delivering pronouncements without reason. The reality, especially in a highly regulated field like ours, is that AI systems are tools designed for transparency.
At IQ-EQ, our AI solutions are built to be explainable. They’re designed to show their work, flagging anomalies or processing data based on clear, auditable parameters set by our human experts. They provide the “what,” allowing our specialists to focus on the “why.”
Myth #2: “AI is coming to replace all human jobs.”
This view mistakes automation for replacement. While AI will certainly automate repetitive, high-volume tasks, its true value lies in augmenting human expertise. AI cannot replicate the strategic thinking, ethical judgment or nuanced client relationships that are the bedrock of our business. Rather, it frees our most valuable asset – our people – from the mundane to focus on the meaningful: complex problem-solving, advisory services, and strengthening client partnerships.
This is not about human versus AI; it’s about human with AI vs. human without AI.
What AI is: Our definition of a digital specialist
So, if AI isn’t a mysterious box or a job replacement, what is it in the context of IQ-EQ?
Think of AI not as an artificial human, but as a tireless, hyper-efficient digital specialist that works alongside our human experts.
Its purpose is to handle the three dimensions of modern finance that have surpassed human capacity: scale, speed and complexity.
It can read and process millions of data points from thousands of documents in minutes, a task that would take a human team weeks. It can identify subtle patterns across vast datasets at a speed that allows for real-time decision-making. And it can navigate the intricate logic of complex fund structures and regulations without fatigue or error.
This digital specialist doesn’t get tired. It doesn’t make typos at 2am. It simply executes its assigned, specialised tasks with unparalleled precision and efficiency, empowering our teams to perform at a higher level. This technology is already being woven into the fabric of our core services, including fund administration and regulatory compliance, enhancing our capabilities from the inside out.
Why it matters: Building a foundation for the future
A clear, grounded understanding of AI is no longer optional; it’s fundamental to future-proofing your operations and maintaining a competitive edge. By viewing AI as a powerful tool for augmentation – one that manages scale and complexity while elevating human expertise – we can move forward with confidence and strategic clarity.
For more information on IQ-EQ’s approach to AI, click here to read an insightful Q&A with our Group CTO Chris Robinson, and stay tuned for a new series of insights where we dive into how AI is transforming critical functions across the full spectrum of investor services.
