Webcast excerpt
Incorporating AI into our day-to-day
April 11, 2024
Artificial intelligence is the future, but it’s also here now in every part of life, including investment management. As Vanguard CEO Tim Buckley and CIO Greg Davis explain, AI condenses earnings and research reports, enables faster and more accurate decisions, and simplifies advice. And that’s only the beginning.
This excerpt is one in a series featuring highlights from Vanguard’s A Look Ahead to 2024 webcast.
Read the transcript
Tim Buckley: A lot of interest in AI here, questions on AI—what effect will that have on the economy? Uh, I’ll tell you it will change how we serve our clients. It will change the advice that we give and what we can do. It already has.
Greg Davis: Yes. So when it comes to AI, there’s a couple of things we do. Part of it is when we think about how we’re making decisions in our group, right? Leveraging the technology to help us look at specific scenarios that we’re in, how we’ve done in the past using data, looking at new data sources, incorporating that in to make more well-informed decisions. The biggest help, I’d say, in our fixed income area has been really around natural language processing.
So you think about earnings transcripts, research reports—being able to condense that to the key critical functions and the ideas that are in there, and being able to summarize that data for our analysts to make much more rapid decisions in real time, relative to having to go through and read a 100-page document. You’re getting a summary of that document with the key terms and being able to contrast that with the earnings transcript, and whether or not those things actually compare, and do they validate what the CEO might have been saying? So it’s being incorporated into our everyday lives in terms of how we manage money here, and it’s exciting to see how it’s going to take off going forward.
Related content:
- The 60/40 portfolio today (video, issued March 2024)
- Making advice accessible (video, issued February 2024)
- The buoyancy of bonds (video, issued February 2024)
Notes:
All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account.
Vanguard’s advice services are provided by Vanguard Advisers, Inc. (“VAI”), a registered investment advisor, or by Vanguard National Trust Company (“VNTC”), a federally chartered, limited-purpose trust company.
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VAI and VNTC are subsidiaries of The Vanguard Group, Inc., and affiliates of Vanguard Marketing Corporation. Neither VAI, VNTC, nor its affiliates guarantee profits or protection from losses.
