AI to dramatically reshape capital markets: David Schwimmer

David Schwimmer, CEO of the London Stock Exchange Group, highlighted India’s pivotal role in the evolution of AI-driven financial innovation during a recent summit in Mumbai. He emphasized that the country's robust digital infrastructure and skilled engineering workforce position it as a leader in the transformation of global capital markets. Schwimmer underscored that artificial intelligence is set to bring profound changes to financial decision-making, risk management, and operational efficiency. While acknowledging that AI is not a new concept in finance, he noted that advancements such as large language models and automated agents are creating unprecedented opportunities for enhanced productivity and faster decision-making. However, he stressed the importance of ensuring data quality and integrity, as the reliability of AI outcomes hinges on trustworthy inputs. Schwimmer warned that poor data quality can result in significant risks, including model inaccuracies and biases. He pointed out that as demand for AI-enabled analytics grows, particularly with a 40% annual increase in data requests since 2019, the financial industry must navigate these challenges carefully. Despite the potential for AI to reshape the sector, Schwimmer acknowledged that the industry is still in its early stages of understanding AI's broader implications, emphasizing the need for structural adjustments to fully harness its capabilities.