Bank of America MD says salespeople will use AI to do the work of quants
Working as a quant in a bank often means working in support of a trading desk. This can often mean doing more menial technical tasks on behalf of a trader or salesperson. Bank of America MD David Shelton suggests that AI will change things in this regard.
Shelton, who is global head of BofA's FICC electronic trading and FX quantitative strategies group, said at Quant Strats Europe today that AI is "shifting the boundary of what things only technical people can do." Less technical staff like salespeople can now do "pre-canned things" like data analysis to their own specification via "self serve."
For example, if a salesperson wanted to know why performance in the Eurodollar was worse yesterday than it was the day before, "a quant would have had to spend more time doing that." Now, it's not their problem.
There are other ways AI is making life easier for quants. Matthias Uhl, head of analytics and quant solutions for UBS' asset management division, said that the hardest part of being a banking quant "is not about coming up with a great model," but convincing the trading desk to use it; "they'll only use it if it's intuitive for them, if they understand it." AI makes explaining these models much easier, both to desk staff and to clients. AI is also making other technical areas like coding easier. Shelton said AI-assisted coding is being used increasingly at Bank of America.
Various panelists at Quant Strats have emphasised the need for creativity, which is something AI lacks. Uhl said implementing the technology "makes tasks faster and more efficient, but it won't make us win the alpha warfare." Shelton, similarly, said AI is "not a quantum leap" and that he "[doesn't] think there's anything unique about AI."
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