Equity trading, while heavily regulated, has often led the way in technological innovation within the financial services sector. However, many banks are exercising caution in the adoption of artificial intelligence (AI) applications and agents. A recent example is TD Securities, the trading division of TD Bank, which introduced its TD AI Virtual Assistant on July 8. This tool is designed for front-office institutional sales, trading, and research professionals to enhance workflow management.
According to TD Securities CIO Dan Bosman, the assistant’s main purpose is to assist sales and trading teams in accessing client insights and research data. The project originated as a pilot initiative proposed by a member of the equity sales team and was later scaled up. Bosman emphasized the importance of making research data accessible in a user-friendly manner for the sales force.
The TD AI virtual assistant was developed using OpenAI’s GPT models, with contributions from TD’s technology teams and the Canadian AI firm Layer 6, acquired by TD in 2018. This integration allows the assistant to access internal research documents and market data. Bosman describes the tool as a Knowledge Management System capable of providing concise, context-aware insights to support sales teams.
Additional features of the TD AI include a text-to-SQL capability that turns natural language into SQL queries. The assistant’s training involved patent-pending optimizations for prompt engineering, making the development process more efficient without needing to fine-tune the underlying AI model extensively.
TD Securities is not alone in its efforts. Other banks, such as BNY and Wells Fargo, are also exploring the use of AI agents to improve customer interactions. However, the challenge for financial institutions remains in navigating strict data privacy regulations while integrating such technology into their workflows. As awareness of AI tools increases among employees, establishing effective practices and understanding limitations will be critical as banks seek to enhance both client and colleague experiences.
Source: https://venturebeat.com/ai/td-securities-taps-layer-6-and-openai-to-deliver-real-time-equity-insights-to-sales-and-trading-teams/