Prudently approaching AI possibilities

As Raymond James reinforced its commitment to technology innovation in fiscal year 2023, our progress was shaped by our prudent and people-first values, enabling the achievement of operational efficiencies while helping to extend the reach of our skilled advisors and associates.

“No matter how exciting an emerging trend, our strategy remains exceeding expectations for advisors and their clients, while taking a measured approach when evaluating new technologies,” says Chief Information Officer Vin Campagnoli. “We begin with small-scale experiments, balance research with real-life implementations and set realistic goals. This deliberate methodology guides the evolution of our AI and machine learning journey.”

At the center of this development is Carillon Labs, a technology team charged with exploring and testing emerging technologies like data science and machine learning to strategically address common business problems. The lab, created in 2019, works with subject matter experts to enhance the efficiency of our back-office operations, using advanced algorithms and predictive analytics to streamline processes, automate repetitive tasks and gain valuable insights into future opportunities.

(Pictured here: Jeff Griffith, vice president, technology; Priscila Drumond Costa, director, technology program management; Stuart Feld, senior vice president, technology; Vicky Chandwani, lead data scientist; Sujeet Pillai, distinguished engineer Not Pictured: Satish Anjilvel, principal, data scientist; John Chan, director, technology; Sourabh Ghosh, data scientist)

The work is already providing benefits throughout the firm, enhancing productivity and accuracy.

Machine learning algorithms have significantly reduced false positives in the electronic communications review system, eliminating the manual review of millions of messages that would have required human intervention in the past.

AI has also changed the way our engineers work. As an example, our data scientists can now build complex models in hours, work that took months in the past. AI is also at work in the firm’s cybersecurity and fraud prevention operations, enhancing real-time threat-detection systems and supporting due diligence anti-money laundering functions.

In developing AI tools for financial advisors, our innovative efforts are supported by the Technology Advisory Council. This group of experienced advisors – nominated from a crosssection of affiliation models – guides the firm’s technology teams and ensures a seamless connection between technology, running their businesses and serving clients. In addition to presenting ideas and reviewing developments, team members also act as technology ambassadors to their colleagues.

“All of the technology teams are just so open to hearing from financial advisors about what works, what doesn’t work, what could be improved and even what we don’t need anymore. As a council, we’re looking at technology – where it is now and where we think we can see in the future,” says Frederick Keator, a member of the Technology Advisory Council and managing director and branch manager of Keator Group, LLC, a firm affiliated with Raymond James Financial Services.

Governance is at the forefront of our AI development process, with guide rails in place to assure models align with their intended purpose. No AI innovation moves from the lab into production until it has been thoroughly tested and reviewed by our model governance teams.

“There’s a lot of excitement about AI, but there’s also a lot of concern,” says Stuart Feld, senior vice president, technology. “The firm’s incremental approach is the right one. It takes time to vet new technology and AI will be no different, and then we can really unlock the transformative possibilities. By leading with our values, we can fuel progress while staying true to ourselves.”

Much of Carillon Labs’ work directly serving advisors and the branch environment has been in setting the stage for larger scale AI improvements, but the team has tallied some early successes along the way.

They unveiled an AI task organizer built into the firm’s Advisor Access application hub that queues applications based on the user’s demonstrated routines, putting tasks in their preferred order with no input needed. The team is also working on a smart chatbot to provide answers to common questions about our policies and procedures.

Raymond James has differentiated itself with its commitment to conservative management. This institutional prudence has been a source of strength and stability for the firm, advisors and their clients. It has enabled the firm to record consistent growth and profitability even in times of uncertainty and rapid change. Our approach to technology is similarly guided by this principle.

“Within the Private Client Group, we endeavor to view technology advancements from an advisor’s perspective: Is this going to help advisors deliver a better client experience, improve their business efficiency and enhance their value proposition?” says Private Client Group President Scott Curtis. “If so, we move forward confidently. This litmus test is one of the key differentiators for Raymond James and our technology platform.”

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This article originally appeared in the 2023 Raymond James Annual Report.