A confluence of developments is now enabling financial services firms to widely embrace artificial intelligence (AI) and robotics to help them with securities operations and related functions, says Moiz Kohari, senior vice president (SVP), chief technology architect at State Street.
But the IT systems most firms use had to evolve before AI and robotics could gain ground, Kohari says.
“One of those reasons [for the wider embrace] is simply the fact that the technology has moved forward enough where we can actually consider some of the problems that come with AI and robotics,” Kohari says. “From an AI perspective, usually speaking, a digital binary system that our computer systems are based, was unable to provide the processing or the memory capacity to solve the types of cognitive problems that exist. However, as those technologies, from a processing and memory point of view, are starting to catch up, you can actually start to think about cognitive capabilities that come out.”
The differences between AI and robotics are becoming clear as more firms apply these technologies to real-world problems.
“One of the major differences between robotics versus AI is that robotics is really a rules-based system that allows you efficiency gains, if you will,” Kohari says. “However, on the other side, artificial intelligence or machine learning ends up being a system that allows you to create a knowledge base on the fly and then being able to provide the connectivity between that knowledge is something that in the past our systems just simply didn’t have the type of processing capacity.”
Kohari agreed to a video chat with FTF News during a break in the action at FTF’s SecOps event in Boston, this past June. He took part in the “Time to Hire a Post-Trade Robot” panel discussion.
CREDITS:
Video Production: Janene Knox and William J. Poznanski, Jr.
Interview conducted by: Eugene Grygo, chief content officer, FTF News
Co-Producers: Sarah Hathaway, vice president, Financial Technologies Forum (FTF) and Eugene Grygo
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