What is a Large Language Model? A Guide for Finance Leaders

This post was previously published here.

So what is a Large Language Model?

Not long ago, machine learning began its dance with finance. Using history’s whispers, these models made their guesses in cold, hard numbers. Want to gauge the risk of a loan? Or divine the future of a stock? 📈📉 As they feasted on more data, their prowess on these specific tasks sharpened.

Fast forward to today. Enter large language models. These titans don’t just throw out numbers. They weave words, crafting almost human conversations . Their diet? They consume all types of online text, from classic books to digital content to brief tweets.

These advanced systems outperform their predecessors. They can simplify financial stories, chat like a banker, and create market insights. They operate on a much larger scale than older machine learning models.

Traditional Models vs Large Language Models

👩‍💼 Finance Leaders & The AI Revolution

Grasping the capabilities of today’s AI isn’t just trendy — it’s essential. Companies that strategically adopt large language models (LLMs) may find themselves at the forefront.

Guiding the development of this technology with care and accuracy? These are the financial institutions set to influence the future.

If these AI systems can produce summaries, engage customers, and analyze the market, what’s our role as humans?

A good question. Although LLMs are powerful, the idea of them replacing finance experts is still a myth. Here’s the deal:

• LLMs boost human abilities but lack deep financial wisdom. They can analyze data but need human monitoring.
• Chatbots ease customer chats, but complex issues need human emotion and understanding. LLMs aren’t fully like humans.
• LLMs’ analyses need expert checks since they miss deep financial insights.
• Deploying LLMs ethically and safely is challenging and requires human oversight.
• This technology might create new job opportunities, as past automation did, leading to new roles in finance.

Imagine this: Humans and LLMs working together, complementing each other’s strengths. The key is guiding this partnership wisely. LLMs can enhance our abilities, not replace them. While they have potential, it’s up to us to guide them correctly.

🧑 Human vs 🤖 LLM: Strengths & Shortcomings

Can you give an example of how human and LLM’s can work together?

Let’s consider the example of financial advisory.

Client Onboarding & Portfolio Creation:

• Human Insight: Advisors connect with clients, understanding their financial goals and emotions in personal meetings.
• LLM Efficiency: After the meeting, the LLM quickly scans global markets and creates a custom portfolio, doing in seconds what might take humans much longer.

Continuous Monitoring & Adjustments:

• Human Connection: Advisors recognize financial implications of clients’ life events, like marriages, births, or retirement.
• LLM Watch: The LLM continuously monitors market changes and news, alerting advisors or suggesting changes if necessary.

Guiding & Informing Clients:

• Human Support: Advisors help clients navigate market uncertainties, clarifying doubts and focusing on the bigger picture.
• LLM Resource: The LLM acts as an instant financial resource, explaining terms, predicting scenarios, and referencing past data.

Feedback & Reporting:

• Human Interaction: Advisors maintain open communication with clients, celebrating successes and adjusting plans after setbacks.
• LLM Analysis: The LLM efficiently analyzes data, providing clients with clear reports comparing their performance to market standards and offering insights into potential future trends.

In this partnership, humans bring emotion and intuition, while LLMs contribute speed and analytical depth. Together, they’re set to transform financial advisory 🤝.

Humans excel with empathy and wisdom; LLMs provide fast, thorough data analysis and constant portfolio monitoring.

Coming Up:

This is just part 1 of our LLM in Finance series. Stay updated for our upcoming posts on the role of LLMs in finance. Stay tuned!

LLM Amplifying Customer Support:
Imagine customer support where repetitive tasks are automated by LLMs, freeing humans to tackle complex issues and provide a personal touch. We’re not just speeding up responses but elevating the human role to focus on deeper customer relations. Welcome to efficient yet meaningful customer interactions 🧡

Dive in for a free automation consultation with us 🚀. Witness firsthand how we channel the might of LLMs to revolutionize customer support automation.