FinTech Weekly - The Master of Deception - Issue #468

At Bloomberg Tech live, Writer CEO May Habib discussed the company's Palmyra LLMs and the future of generative AI in enterprises for 2024. She highlighted the challenges of implementing AI and the need to minimize hallucinations to ensure data clarity and avoid copyright issues. Habib emphasized that while foundational models may become commoditized, there remains significant opportunity for startups to innovate and assist enterprises. Despite consolidation in the tech industry, Writer plans to stay independent and continue expanding its AI capabilities to improve enterprise productivity.

The convergence of the Internet, crypto, and artificial intelligence (AI) aims to address AI's current issues, such as hallucinations, bias, data ownership challenges, and model collapse. ChatDKG exemplifies this by promoting a truly open AI approach, allowing users to define trusted knowledge for their AI solutions and support multiple AI models.

Chia Der Jiun, managing director of the Monetary Authority of Singapore (MAS), and Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), discussed AI-related risks for central banks at the Bank for International Settlements Innovation Summit on May 7. Chia highlighted the dangers of AI-generated scams, frauds, and cyberattacks, warning that AI "in the wrong hands" can democratize access to malware. He described the situation as an "arms race on both sides," emphasizing the escalating threats central banks face from malicious AI applications.

As debates on 'Responsible AI' and 'Ethical AI' intensify, Inc42 and Microsoft are hosting 'The AI Connect,' an invite-only event in Delhi on May 15th. The event aims to empower startups to anticipate future AI developments and prepare for the next wave of AI. Microsoft's six principles for responsible AI—accountability, inclusiveness, reliability & safety, fairness, transparency, and privacy & security—will guide the discussions. Over 12 founders from various sectors will discuss building AI solutions that benefit humanity. Developing ethical AI is now essential to maintain customer trust, avoid regulatory risks, and ensure compliance.

Wipro has partnered with Microsoft to launch a suite of cognitive assistants for the financial services sector, powered by generative AI (GenAI). Announced on May 6, this collaboration aims to transform the fintech landscape with enhanced market intelligence and streamlined processes. The suite includes Wipro GenAI Investor Intelligence, Wipro GenAI Investor Onboarding, and Wipro GenAI Loan Origination, all designed to boost productivity, expedite client onboarding, and improve client engagement by delivering deep market insights and timely information on investment products and investor behavior.

A London FinTech company, Stratiphy, is among 21 ‘responsible AI’ projects backed by Innovate UK, receiving a £1 million grant. Stratiphy leads a consortium, including the University of Bristol, the University of Birmingham, Chenavari Investment Managers, Smart Pension, and Aventur Wealth. This grant will enhance Stratiphy's personalized investment management solution, aiming to accelerate the development and adoption of trustworthy AI in financial services. The consortium's diverse expertise in AI, financial modeling, and technology-driven wealth management promises substantial impact across the UK's financial sector.

Thomas Li, formerly of Point72, founded Daloopa with Jeremy Huang and Daniel Chen to address the financial industry's reliance on error-prone manual data entry. Daloopa uses AI to extract and organize data from financial reports and investor presentations, streamlining analysts' workflows. The startup raised $18 million in a Series B funding round led by Touring Capital, with participation from Morgan Stanley and Nexus Venture Partners. Li admits that while Daloopa's AI isn't foolproof and AI tools can experience hallucinations, the platform's algorithms improve over time with more training data. Daloopa primarily serves hedge funds, private equity firms, mutual funds, and investment banks, enhancing their investment and research processes.