Automation of Business Processes Is the Low Hanging Fruit

This Harvard Business Review article on AI and the use of AI in corporate America is worth reading. (https://lnkd.in/geR8xbjJ) They break the use of AI into three segments, with the first being the one most pursued.

1. Robotics & Cognitive Automation
2. Cognitive Insight
3. Cognitive Engagement

One of their key take aways is to take the low hanging fruit, and the moon shots have a higher degree of failure, but lets also remember the corollary, which is the pay off of a funded moonshot should also be dramatically higher. But, lets start off with those low hanging fruit, the robotic automation, and in fact we are looking at business operations, so Robotic Process Automation.

In every form of automation there is need to understand context, attribution, and trust, that can be delivered into the person recieving that information/data/output. In many cases we trust brands and we leave the sausage making to them. This does not do well for a fast moving environment and particularly a fast moving technology environment and fast moving markets. Well what about slow moving markets? i.e..infrastructure, Real Estate, Private Equity, and Private Credit?

The digital transformation of Capital Markets involves the breaking down the functions of the business/market function into micro-processes. I have written about this a number of times, the most recent time was a year ago (https://lnkd.in/gx8-T8KD) Here is another version, very well written, talking about Micro services versus a Monolith... (https://lnkd.in/gVqy2BuD).

The breaking apart of these Capital Market functions into micro-processes that can use AI will speed the markets particularly in the slowest moving part of the function. A transaction can only happen as fast as the slowest part of the transaction. In private markets this is price discovery. AI, with context, attribution, and trust use DLT, and delivered to clients who control their own data will transform the markets. Later this week we will be demonstrating live how we can use multiple AI tools to process unstructured data and deliver to to tools like risk books, valuation models, waterfall tools, with out loss of control of your data. This is Inveniam 2.0 and it will revolutionize fund administration for Alternatives.

Automation of Business processes is the low hanging fruit, having full control of your data and attribution is what make AI usable in capital markets and particularly in Alternatives. Next is the world's first Derivatives Market for Alternatives, I am writing this from Abu Dhabi, where the future has already arrived.