How investment banking leaders can initiate a GenAI game plan today (Part 2)

It’s not just about interesting use cases.

In my previous article (Part 1 ), I spotlighted 10 ways in which GenAI could be applied to teams across the front and middle/back offices in investment banks, to streamline services, reduce efforts, increase organization unit productivity, whilst allowing teams to focus on the high value activities.

There are an abundant of opportunities that GenAI presents.

However, as many of us know… where there are opportunities there are also threats - and if you can’t think of a threat then you’ve not thought hard enough! And yes, in this case, it’s not hard to identify the threats of being able to successfully deploy GenAI into an IB. For example, the ability to ensure you actually understand what your clients need, and which use cases to prioritize; also your ability to: i) secure investment budget; ii) have vocal sponsorship from the top of house; iii) have dialogue and support from the regulators; iv) manage uncertainty around careers; and v) manage security and ethical risks.

These are just some obvious threats. Another obvious threat that may not get enough attention is actually the ability to transform the organizational mindset and culture. I truly believe that this is the biggest threat for an IB given the comments I made in Part 1 about the inherent DNA of these firms. As such, many may consider the 10 use cases in Part 1 and think “well, what happens to the role of the junior banker, the senior banker and their supporting teams?”. However, the real question is ‘how may existing roles change, and new roles be created, to support GenAI’. For example, the senior banker is only the senior banker given the long experience and natural ‘gut instinct’ they have developed – and this only exists because they were a junior banker once upon a time.?

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As such, the key question is how can that banker leverage the new services around them, as ultimately such an important role cannot be easily displaced. Though it’s natural to play to our anxieties (however small they may be) and question things that may impact us and that we have minimal visibility over. The majority of people typically worry first, as opposed to thinking optimistically. Hence, GenAI needs to cultivate #GenAIInspired thinking – meaning people need to be educated, inspired and excited about the future of their careers and what GenAI can bring – that potentially creates a whole new set of roles for IB functions.

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What’s more, GenAI use cases will continue to evolve and quadruple even – so instead of being distracted by the multiple ways in which GenAI could displace a job, task, business unit or functional unit, think about how it may change those things and the new opportunities it could then create. Here are 5 suggestions of what your organization can start doing immediately.

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1.?????? Assessing your client (and their clients) needs over time: This means really understanding them or trying to understand them better so you appreciate what their evolving needs and value requirements will be. Then leveraging this data to develop the set of GenAI use cases that are prominent for your business, markets, clients and wider stakeholders; then ensuring that your uses cases are developed with context, rationale and real personified users as this will be important to help communicate the changes.

2.?????? Developing a new book of talent skills, that are needed for your organization to deliver the changes from the use cases. This means really thinking creatively on the diverse skills, new and existing skills as well as cataloguing them logically to help with talent management and talent planning.

3.?????? Actually cultivating the organization through change: That’s where the heavy lifting will be!! This means actively planning your GenAI talent as well as human talent. Evaluating roles, responding to necessary changes, and importantly motivating and inspiring the organization to change and think about the #future of work and the #futureoftalent – particularly where change is not always welcomed.

4.?????? Developing a execution game plan that is set up for success: Defining an approach and a plan and prioritizing key use cases based on client needs. Also, ensure you are set up to succeed with key supporting enablers such as a central skilled team, budget, sponsorship, regulator dialogue and necessary organizational governance and controls.? Ensure that you build on the momentum and mobilize a delivery team to analyze the existing technology and infrastructure; design the target state (based off of the agreed priority use cases) and start implementing those as pilots.

5.?????? Thinking. And thinking big: This means constantly evaluating use cases and hypotheses and also testing your limits by focusing on a good hybrid of efficiency-based use cases as well as innovation-driven ones.

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It’s an exciting journey for those willing to go beyond talking and thinking about it.

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This article is one of two parts – click here to read Part 1.

Leave a comment or follow my profile if this resonates with you. These are my views and may not represent the views of the organization I work for - please feel free to direct message me if you would like to explore this conversation further.

#GenAI #FutureOfWorking #TalentSkills